Elon Musk Acquires Land In Nigeria To Construct Starlink Ground Stations

Elon Musk’s internet company, Starlink, is making significant progress in Nigeria by planning to establish ground stations across the country, aiming to enhance connectivity for millions of Nigerians.

BMA understands that Starlink has acquired approximately 29,000 acres of land in Lagos, Ogun, and Rivers states to develop these facilities.

The ground stations will be in strategic areas such as Okun Ajah in Lagos State, Sagamu in Ogun State, and Port Harcourt in Rivers State. Construction is already underway in Okun Ajah, with completion expected by the fourth quarter of 2024. The remaining locations are projected to be operational by 2025.

In collaboration with Equinix, a leader in data centre solutions, Starlink is building these ground stations to strengthen its presence in Nigeria. Equinix entered the Nigerian market in 2022 after acquiring MainOne, a prominent data centre and connectivity provider, in a $320 million deal.

These ground stations, also known as Gateways, are crucial for Starlink’s satellite-based internet service. They communicate with Starlink satellites orbiting the Earth, facilitating data transmission between the satellites and the internet backbone on the ground.

By establishing local ground stations, Starlink aims to bypass international data centres, potentially reducing latency and improving internet performance for users in Nigeria, offering faster, more reliable internet services for both individual users and businesses.

Starlink entered the Nigerian market in 2022 after obtaining various licenses, including an Internet Service Provider (ISP) license from the Nigerian Communications Commission (NCC), a Sales and Installation license, and an International Gateway license. The company has rapidly become the third-largest ISP in Nigeria as of the first quarter of 2024, indicating its significant impact on the country’s telecom sector.

Despite higher costs compared to local ISPs, Starlink has experienced a customer surge driven by its satellite service’s ability to provide connectivity in areas with poor internet coverage. With the completion of its ground stations, Starlink is set to further solidify its position as a major player in Nigeria’s telecom landscape, offering a new standard for internet connectivity across the country.

Broadcast Media Africa 

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Nigeria in talks with Elon Musk to create jobs in Nigeria

The Federal Government of Nigeria has initiated discussions with Elon Musk's Starlink on setting up programs that will create jobs in Nigeria through local maintenance and production of its hardware.

The discussions happened on the sideline of the ongoing International Telecommunication Union-World Radio Communication (ITU-WRC) Conference in Dubai, with the Senior Director of Global Licensing and activation of SpaceX, Ryan Goodnight.

The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, disclosed this on Sunday through his verified X handle.

The conversation focused on the possibility of Starlink creating a program to certify local installers and maintenance personnel in Nigeria, and contracts with hardware startups in the country to produce Starlink's repeater boxes locally.

What the minister said:

“Excellent conversation with Ryan Goodnight, Snr. Director, Global Licensing & Activation of @SpaceX on the sidelines of ITU-WRC 23, who shared that Nigeria is their biggest market in Africa. As demand for @Starlink continues to grow in Nigeria, we discussed connecting unserved and underserved Nigerians,” he stated.

“I also mentioned the possibility of creating thousands of new jobs in Nigeria through initiatives like a certified installer/maintenance programme for Starlink and working with hardware startups to produce repeater boxes locally.

“We intend to encourage every tech company to invest and deepen our tech ecosystem,” the Minister added.

When Elon Musk’s Starlink made its debut in Nigeria in January 2023, the next-gen satellite internet service provider promised to usher in a new era of high-speed internet connectivity in Africa's most populous nation. It also promised low-latency internet to areas where it is either unreliable or inaccessible.

In October, Starlink Nigeria reduced its hardware prices by 21% in its efforts to capture a larger portion of the Nigerian Internet Service Provider (ISP) market.

Following this reduction, Starlink's hardware is now priced at N299,500, down from its previous rate of N378,000. However, the monthly subscription fee of N38,000 has not changed. 

By Adekunle Agbetiloye, Business Insider Africa

 
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