Gaborone, Botswana — The entry of Elon Musk's Starlink into the Botswana market this week has been hailed as a "game-changer." Analysts concur the introduction of the satellite internet service provider will improve internet access but there is concern over subscription costs and the service potentially pushing local internet providers out of business.
Starlink this week announced it had begun operations in Botswana, three months after the company received approval from the Botswana Communications Regulatory Authority, known as BOCRA.
The Space-X operated broadband service enters a market dominated by Botswana's major mobile network operators.
Tavonga Muchuchuti, president of the industry group Fintech Association Botswana, says the introduction of Starlink will make the internet more widely accessible.
"It is a very big step for our market, especially when it comes to improving digital access across the country as well as it coming in to help us with bridging the digital divide that we have seen over the years," he said. "By leveraging these constellations of low earth orbit satellites, Starlink can actually deliver high speed internet to even some of the most remote areas across the country, where the traditional ISPs have generally struggled with connectivity."
Ewetse Khama, the country manager for Zamlim, a foreign direct investment consulting firm, says Starlink's launch heralds a new era in the local internet market.
He says local ISPs have to change strategy to remain competitive.
"They have to figure out another way of battling this coming reality," he said. "ISPs in Botswana do have the advantage at the moment on the cost element because setting up an infrastructure like Starlinks is incredibly cash heavy and they need to recoup the costs. So ISPs for the short term, are not going to be struggling as much as assumed."
Starlink is rapidly expanding across Africa. Zimbabwe-based digital expert Sean Ndlovu says this is a positive "shake up."
"The advent of Starlink on the continent is a big game changer," he said. "It gives [internet] access to the underserved populations in the rural areas and even in high density areas. It is going to bring about innovation. The more access our people have to the internet, they can learn."
Ndlovu also says Starlink's satellite service will lead to better, more reliable internet connections.
Concerns, however, remain over Starlink's pricing structure, with fears it could be expensive for rural dwellers and low-income earners.
For domestic use, Starlink users in Botswana pay $363 for the hardware and a monthly subscription fee of $52.
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Muchuchuti says the impact of Starlink in Botswana will depend on the balance between innovation and inclusiveness.
"This would mean that the kind of people that we will be targeting for in these rural areas and low-income areas, that pricing might be out of reach for them because they have got to invest in that initial purchase," he said. "To be truly transformative, there will be a need to really have efforts to make that technology more and more affordable."
Starlink faced initial licensing challenges but Botswana's regulatory body granted permission after President Mokgweetsi Masisi met with the company's directors in the United States in May.
