Hertta-Maria Amutenja
Economic analysts have raised concerns about the potential impact of Elon Musk’s Starlink satellite internet service on Namibia’s telecommunications sector.
With the Namibian government engaging Musk’s company to expand internet access, analysts say local players such as MTC and Telecom Namibia may face significant competition.
President Nangolo Mbumba and the minister of information, communication and technology, Emma Theofelus met with Musk in New York last month and discussed potential Tesla and Starlink investments in Namibia.
Mally Likukela, an economic analyst, highlighted the potential market disruption that Starlink could bring.
“It will definitely take a substantial amount of market share from the two giants because Starlink, as a leading player in the internet space, has more advanced and high-tech product propositions,” he said.
Likukela added that due to economies of scale, Starlink could offer services at lower unit costs than local providers.
While Starlink presents a competitive threat, Likukela also pointed out that Namibian telecom companies could benefit from the technology transfer opportunities.
“The greatest opportunity for the local giants is to learn from the best in the world,” he said.
Likukela noted that some of Starlink’s services would require using existing infrastructure, which could lead to necessary updates and upskilling of local technicians.
He warned about great challenges and added that local telecoms might also face a revenue loss, given the significant investments made in these companies by the government and private shareholders.
“The greatest challenge is, of course, market loss and the threat to their monopolistic powers,” said Likukela.
Economic analyst Josef Kefas Sheehama echoed these sentiments but emphasised the broader economic opportunities Starlink could bring to Namibia.
“Starlink’s entry into the Namibian market is applauded as it may present significant opportunities to improve internet accessibility, service quality, and competitive pricing in the country,” Sheehama said.
Sheehama also pointed to the potential for social and economic empowerment, particularly for rural communities.
“Starlink can help reduce the digital gap and ensure that no Namibian is left behind in the digital revolution,” he explained.
However, Sheehama also cautioned about the potential drawbacks. He noted that the arrival of Starlink might lead to job losses at existing internet providers, as the new technology could reduce the need for staff.
“As technology advances, many traditional jobs may become obsolete,” Sheehama warned.
He stressed the need for Namibia to focus on upskilling its workforce to remain competitive in a rapidly advancing technological environment.
