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Business News of Thursday, 21 December 2023

Source: www.legit.ng

MTN to partner Elon Musk’s Starlink for upgrade to strengthen competition with Airtel, Glo, others

MTN logo and Elon Musk MTN logo and Elon Musk

MTN Group is working with satellite communication firms, such as OneWeb, Starlink, Lynk Global, and AST SpaceMobile, to improve Internet connectivity in Africa's rural areas.

The telecom giant said it is already in talks with some Low Earth Orbit (LEO) to explore their trails.

Company in discussion for possible partnership

Mazen Mroué, MTN Group's chief technology and information officer, said the telecom company has upcoming direct-to-cell trials with Lynk Global in South Africa and Ghana.

He said it is also in talks with AST SpaceMobile for trials in Nigeria and South Sudan.

According to Mroué, the first (Lynk Global) utilizes direct-to-cellular technology to improve network connectivity in areas that have historically received less service.

He clarified that no specific changes are needed for the technology, which works with any device. He also mentioned that it works with current mobile devices.

According to him, the second company (AST SpaceMobile) uses LEO satellites to provide critical fixed connectivity for enterprise customers and efficient backhaul connectivity for MTN cellular sites.

He said this is particularly relevant in remote and rural locations, offering a more affordable and efficient alternative.

Possible partnership with SpaceX

Mroué noted the possibility of partnering with Elon Musk's Space X and more companies to improve services.

He said: “Concurrently, there are ongoing engagements with SpaceX’s Starlink, with enterprise-grade trials underway in Rwanda and Nigeria,” said Mroué.

“In parallel, we are advancing discussions with Eutelsat OneWeb for a planned pilot in South Africa.” Mroué said they conducted a successful trial in Liberia on MTN's spectrum with Lynk Global in the remote village of Gowehn.

They received a cell broadcast message on a device, illustrating the capacity to send and receive text messages.

He said the test was an initial use case as the country plans to conduct a proof-of-concept trial for voice and data in some key markets. MTN clarifies that its contracts with satellite service providers are based on a shared revenue model, even though each agreement is negotiated separately.

It noted that this move could completely change how distant parts of Africa receive telecommunications by testing standard and direct-to-device satellite services.