Why MTN is partnering to launch satellite internet services

• The MTN Group Chief Executive Officer, Ralph Mupita, has disclosed that the telecom organisation is exploring satellite internet service
• Mupita said  the firm was carrying proof of concept with several LEO satellite operators for possible partnerships
• Mupita disclosed that many providers are happy to partner with the firm as it becomes a reseller via its enterprise business to some of its customers

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

MTN Group CEO Ralph Mupita has announced that the telecom company will collaborate with low-Earth-orbit (LEO) satellite providers to connect rural areas.

He said the company will have to embrace satellite as an additional technology form to keep customers and businesses connected at all times.

MTN is pivoting to satellite internet service to rival Starlink Credit: Tim Robberts
Source: Getty Images

MTN to take on Starlink with new project

Satellite connectivity has become more prominent in Africa with the launch of Elon Musk’s Starlink in several African countries.

The MTN boss noted that the firm was carrying proof of concept with several LEO satellite operators for possible partnerships.

Mupita disclosed that many providers are happy to partner with the firm as it becomes a reseller via its enterprise business to some of its customers in some countries.

He added that the company understands the challenges of competing as a wireless operator.

He said:

“We’re very aware of the challenges of having to compete as a fixed and wireless operator with LEO satellites over time, so we’re arranging ourselves to be able to prove our businesses in our key markets,” Mupita said.

According to reports, Mupita advocated for the same treatment given to LEO operators and Manos.

NCC slashes tariff plans for telcos

The MTN helmsman disclosed that LEO operators should be treated the same as terrestrial operators and subjected to the exact regulatory requirements regarding data privacy, among other regulations.

The development comes as the Nigerian Communications Commission (NCC) issued notices to streamline 369 current telecom tariff plans to assist customers in making wise choices.

The NCC plans to implement a similar change inspired by India’s Telecom Regulatory Authority (TRAI), which in 2004 limited telecom providers to a maximum of 25 tariff options to enhance billing transparency. 

The NCC's "Guidance on the Simplification of Tariffs in the Nigerian Communications Sector" states that each operator may only have 100 bundles and seven pricing options starting on or before December 31, 2024. 

MTN Speaks on increasing call, data tariffs

Legit.ng earlier reported that MTN Nigeria is advocating for supporting higher telecom rates in reaction to the devaluation of the naira and the high cost of foreign exchange.

According to the telecommunication company, there would be incentives for more investments in the sector if a new traffic structure is authorised.

The Punch reported that MTN Nigeria's chief financial officer (CFO), Modupe Kadri, stated this during a panel discussion organised by the Nigeria Economic Summit Group (NESG).

Source: Legit.ng