Opinion – Starlink’s local pros and cons 

Opinion – Starlink’s local pros and cons 

Namibia continues to have historically low levels of development, but it can industrialise, pursue inclusive growth, and draw in investment by utilising
technological advancements. 

Namibia intends to licence Starlink’s operations to become known as a country that has fully grasped the potential of technical advancement to improve its citizens’ lives and stimulate its economy.

Starlink’s website states that it is a constellation of satellites that provides high-speed internet access. Through this new service, SpaceX hopes to provide high-speed, low-latency broadband internet connections to underserved areas of the world, such as rural areas. Furthermore, the company aims to provide, at most, more reasonable rates in cities. 

To connect to the satellites, customers set up a relatively small satellite receiver at home. 

The most recent satellite terminal models can be installed anywhere there is a view of the open sky. 

Most people find that mounting it high up either on a mast or atop their house works best for optimal service. Namibia’s future appears bright in terms of technological advancement, societal development and global competitiveness, as long as it continues to seize the opportunities this partnership offers. 

Starlink’s entry into the Namibian market is, therefore, applauded, since it may present significant opportunities to improve internet accessibility, service quality and competitive pricing in the country, which may result in cheaper internet that is also flexible and responsive to the rate of change.

Potential opportunities

The Communications Regulatory Authority of Namibia (Cran) should grant an operating licence, given that Starlink helps local businesses comply with international regulations and standards so they can increase their global competitiveness. 

Local content policies must keep up with technological advancements to ensure that the returns on technology investments remain domestic.  In addition to fostering sustainable economic growth and providing local workers with access to professional development and training opportunities, this will increase their employability and skill set. 

I have no problem with Starlink licensing, as long as they consent to a Namibian owning 51% of shareholdings.

Furthermore, while there will likely be many benefits from Starlink’s arrival, the most important one is that, given that there are currently only a few major internet providers in the country, it may help close the digital gap in a place where a sizable part of the populace lacks access. 

This change could potentially have a significant impact on the local economy, as well as have a greater overall impact on the nation’s trajectory. 

It also poses a challenge to established internet service providers like MTC and Telecom Namibia to improve internet accessibility, service quality and competitive pricing in the country, which could result in cheaper internet.  These developments have the potential to increase Namibia’s competitiveness on the international stage.

 We must realise that Starlink will not only contribute to internet accessibility and high-speed internet. It also has the potential to have a significant impact by generating economic value and new, innovative business models for other industries.  This will bolster the positive effect of technology on economic growth.  

Additionally, because of fast, low-latency broadband internet connections, businesses can operate more efficiently, increasing economic output.  This maximises the economy’s potential most of the time by enabling more people to work and use resources more effectively.  

Increased productivity opens new markets and improves organisational decision-making.

Therefore, creative solutions can have a multiplicity of positive effects on the Namibian economy, such as the investment opportunities provided by Starlink.  Apart from the economic, educational and additional benefits, Starlink’s elegant arrival promotes social inclusion and community empowerment throughout Namibia.  No matter where you live, you can take advantage of online services, stay in touch with friends and family, and engage in the digital economy, if you have access to high-speed internet. 

If no tower crane satellite provides internet access in Okongo, you can still use your laptop to access your banking and other services.  

Starlink can facilitate in reducing the digital gap, and ensuring that no Namibian is left behind in the digital revolution. 

Possible drawbacks 

In markets where there are only two providers at the moment, Starlink could become a competitive threat, forcing these providers to improve their current offerings to stay ahead of the competition. 

This choice would benefit all customers. 

Starlink can have several adverse effects on staff members of current internet providers. 

Speed tends to increase as Starlink enters the market, most likely as a result of Namibia’s intensifying competition.

 Beware that there might be some issues when integrating Starlink into Namibia’s current network infrastructure, especially in terms of dependability and interconnection.  Additionally, we must acknowledge that Starlink will not require more employees due to technological advancements, and the two companies will be forced to reduce staff, which will result in unemployment. 

As technology advances, many traditional jobs may become obsolete.  If Namibians are not sufficiently prepared for these changes, the introduction of new technologies may cause social disruption, widespread unemployment and human suffering. It is important to remember that technological advancements can lead to high levels of inequality, as more tasks are replaced by automation. 

While this may save labour costs, it can also increase inequality and poverty because only skilled workers will be able to fill the available positions, widening the distributions. 

Ensuring that technological advancements do not disadvantage the unskilled is a crucial concern.

Upskill Namibia for the technology revolution

Namibia should upskill and train its people to beware of the demands of technology, as the rest of the world advances technologically. 

The difficulties Namibia faces in terms of reskilling and upskilling are the infrastructure
gap, and the need to upgrade to remain competitive as well as ensure that our youth and everyone else are employable by Starlink.

To better prepare people for the technological innovations and new developments that are reshaping our world, Namibia needs to implement improved strategies that also highlight local content policies.

 *Josef Kefas Sheehama is an independent economics and business analyst.