Experts say Starlink could reduce Namibia’s high data costs

The Economic Policy Research Association says the entrance of service providers like Starlink in Namibia’s telecommunication industry would improve the sector.

Last month, the association published a report titled ‘Satellite Internet and Namibia’s Red Tape’, which recommends encouraging private sector participation to drive innovation.

“By embracing global connectivity solutions e.g. Starlink, and fostering a competitive, transparent regulatory environment, Namibia can position herself as a leader in digital transformation rather than a nation stuck in regulatory paralysis,” the report reads.

In November, the Communications Regulatory Authority of Namibia (Cran) advised the public not to support Starlink, deeming the satellite internet company’s activities in Namibia illegal.

The association argues that Namibia needs to choose to adapt and innovate or risk falling further behind in an increasingly digital world.

“Low earth orbit satellite communication, led by operators such as Starlink, has the potential to revolutionise connectivity – especially for rural and underserved areas,” the report reads.

Namibian digital change strategist Paul Rowney yesterday agreed with the recommendation to use Starlink, saying private ownership provides opportunities for growth by diversifying markets and fostering competition.

This competition, he said, will drive innovation, improve service quality and reduce prices for consumers.

He argued that private companies are often more agile and willing to invest in new technologies and infrastructure.

“This can lead to faster deployment of advanced services like high-speed internet and 5G networks,” he said.

Rowney said this will also address Namibia’s high data costs.

The report states that Namibia rose in the rankings of the cost of one gigabyte of data per month, from 46th place in the first quarter of 2022 to ninth place in the first quarter of 2024.

“Namibia is again in the competitive field, the top one-third of African countries. Fourteen countries were cheaper in Africa than Namibia for the 10GB and 20GB per month usage. Namibia ranked 12th for the 500MB per month in Africa,” the report reads.

Cyber analyst Nrupesh Soni on Tuesday told The Namibian the association’s recommendations make sense, especially removing the requirement for 51% local ownership, streamlining the licencing framework and allowing private sector competition to thrive.

“Namibia has been stuck in a regulatory environment that favours state-owned entities, which has stifled competition, limited investment and increased costs for consumers,” he said.

Soni reasoned that the argument against foreign ownership is outdated – especially when the progress of Kenya, Botswana and Nigeria are highlighted.

“These countries have liberalised their telecom sectors, attracting investment and making internet access cheaper and more widespread,” he said.

He believes that Starlink’s entry into those markets is proof of this.

“Namibia is essentially blocking innovation under the guise of protectionism, which only benefits a few insiders,” he added.