Elon Musk’s Starlink to Invest in 3 States in Nigeria to boost connectivity

Elon Musk’s internet company, Starlink is setting up ground stations across Nigeria in a strategic move aimed at enhancing connectivity in the country.

According to an insider source with knowledge of the project, the facilities are to be built on approximately 29,000 acres of land acquired in three states.

The ground stations will be established in key locations in Okun Ajah Lagos State, Sagamu in Ogun State, and Port Harcourt.

Starlink Ground Stations 

According to reliable sources who wish not to be disclosed as they are not authorized to speak on the matter, Starlink will be setting up ground stations in Nigeria and will be located in Ajah, Lagos State , Port Harcourt , Rivers State and Sagamu, Ogun state .

Starlink is partnering with Equinix, a leader in data centre solutions to build ground stations across the country. Recall that Equinix made a strategic entry into Nigeria in 2022 with the acquisition of MainOne in a $320 million deal.

 

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The entire land size for the ground station is estimated at about 29,000 acres according to our sources. Construction has already begun in Okun Ajah, Lagos State, and is expected to be completed by Q4 2024.

The other locations are projected to be ready in 2025.

Although the investment details remain undisclosed, the scale of the project underscores Starlink’s determination to solidify its presence in Nigeria as it continues to expand its global network.

Ground Stations 

According to Starlink, a ground station or a gateway, is a terrestrial relay station that communicates with the Starlink satellites orbiting the Earth.

  • These stations are essential for the transmission of data between the satellites and the internet backbone on the ground.
  • They act as intermediaries, receiving data from the satellites and routing it to the appropriate internet networks, and vice versa.
  • Information from SpaceX, Starlinks parent company indicates that it operates approximately 150 ground stations around the world, which play a crucial role in linking the Starlink satellites with internet data centers on the ground.

These data centres connect to existing fibre-optic infrastructures and send data to the Starlink satellites in Low Earth Orbit.

 

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What this means 

By bypassing the need to connect through international data centres, Starlink aims to provide a more direct and efficient internet service, potentially setting a new standard for connectivity in Nigeria.

  • For Nigerians, this development means a significant improvement in connectivity. Traditionally, all network traffic from Nigeria must be routed through international data centres before returning to the country, introducing delays and potential bottlenecks.
  • Starlink’s ground stations will streamline this process, potentially reducing latency and enhancing overall internet performance.

This could greatly benefit both individual users and businesses, providing faster, more reliable internet services.

What you should know 

Starlink made its entry into Nigeria in 2022 with the acquisition of an Internet Service Provider (ISP) licence from the Nigerian Communications Commission (NCC).

  • Aside from the ISP licence, Starlink also acquired two other major licences, which include a Sales and Installation licence and an International Gateway licence.
  • The International Gateway licence allows Starlink to establish and operate facilities for the transmission of international voice, data, and other telecommunication services into and out of Nigeria.
  • The ground stations project will make SpaceX company to become one of the biggest players in the Nigerian telecom sector.

Already, Starlink has become a major player in the internet service provisioning space as its customer number continues to surge.

  • As of Q1 2024, data from the NCC revealed that Starlink had become the third-largest ISP in the country, coming behind only two old players, Spectranet and FibreOne.
  • Despite its higher costs compared with local ISPs, Starlink, which announced its presence in Nigeria in January 2023, has sparked high interest among Nigerians eager to change their service providers.
  • The ubiquitous status of its satellite service also encourages people in areas with poor internet networks to go for Starlink.
  • Many local ISPs that have been in operation in Nigeria for several years are currently having far less than the number of customers  Starlink has garnered in one year.

– Nairametrics

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