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What’s The Implication Of Google Cloud And SpaceX Deal For MTN, GLO, AIRTEL, etc.?

 

Google had announced its deal to supply computing and networking resources to Elon Musk’s space development company, SpaceX. This is to help deliver internet service through its Starlink satellites.


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SpaceX will install ground stations at Google data centres that connect to SpaceX’s  Starlink satellites, with an eye toward providing fast internet service to enterprises in the second half of this year.

The deal represents a victory for Google as it works to take share from Amazon and Microsoft in the fast-growing cloud computing market says Tekedia.

It’s also an unusual type of deal for Google — or any other cloud provider — as it relies heavily on Google’s internal network that connects data centres, rather than simply outsourcing functions like computing power or data storage to these data centres. SpaceX will install ground stations at Google data centres that connect to SpaceX’s Starlink satellites.

This has a massive implication for telcos in Nigeria.

First of all, it could begin disintermediation if datacentres’ traffic suddenly goes satellite, denying them major revenue, because it’s combining cloud with universal secure connectivity.

It’s a very powerful combination because there is no need for cell towers: customers’ devices will communicate to satellites, and then the satellites will link up to Google data centres.

According to Ndubuisi Ekekwe, ‘Yes, MTN, Glo and Airtel may have to watch if what they did to CDMA could happen to them via satellite-based broadband.’


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He stated that,

‘I expected SpaceX to offer a new level of competition against terrestrial players like MTN, Glo and Airtel in Nigeria. Satellite-based broadband is a product displacement threat and companies like MTN would see massive threats in coming years from satellite providers. But one thing is certain, customers will rejoice because quality will improve and cost will drop’

he concluded.

This will lead to a new age of connectivity that will give rise to digital innovation and the utilization of electronic data interchange, which is modern technologies that are aiding human operations and activities.

These technologies include Internet-of-Things (IoT), Artificial Intelligence) AI), 3D Printing and Electronic Data Interchange (EDI), and advancement in rural economies in Africa due to our challenging rural connectivity issues.

As this happens, for customers, the future looks amazing because quality will improve even as price drops. If you look at this critically, the world’s leading cloud computing providers have major satellite plans. And if they execute as they plan, from datacentres to datacentres, GSM providers like MTN, Glo and Airtel will struggle.

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