Elon Musk’s satellite broadband Internet company Starlink has received the green light to operate in Jamaica, making its first foray into the Caribbean market and becoming the third satellite broadband company in Jamaica.
Starlink a subsidiary of Musk’s SpaceX business provides satellite internet access coverage in 40 countries after only 4 years in business. SpaceX has about 2,700 satellites in the global network, with a basic monthly price of US$110 for more than 400,000 subscribers. The company is also targeting global mobile phone service after 2023.
Why does it matter?
The Internet access market in Jamaica has long been a duopoly of service providers in Flow (Cable & Wireless and Digicel) and consumers have often called for competition that would give them choice in service, reliability and pricing, particularly in rural and incurable areas.
Why this is great for consumers
Better speeds than a dial-up connection – Satellite connections are generally more reliable and faster than a dial-up Internet connection.
Instant installation – Setup and installation of satellite connections are quite fast. It does not require any kind of construction and the whole set including a WiFi router, tripod mount and power supply can be quickly installed according to your requirement.
Rapid disaster recovery time – Since the link requires a clear sky to communicate with the satellite in space, bad weather can affect it. However, your satellite connection recovers once the weather stabilizes.
Increase in the number of satellite internet providers – Currently, there are two other companies in this satellite broadband Internet sector – ReadyNet owned by former Cable & Wireless/Lime chairman Chris Dehring offers, and the other player Neptune Communications owned by Jamaican Brian Bennett-Easy and Barbadian Julian W. Jordan.
Why this is not so good for customers
Strict data limits – Satellite connections generally apply data caps, which means you’ll need to keep a tight rein on your data during the monthly cycle to avoid incurring additional charges. This also means you may face bandwidth throttling until the end of the month.
Weak signal during bad weather – Satellite Internet, while reliable most of the time, can lose all reliability during patches of bad weather. Since this Internet service depends on satellites, if there are storms or snow in your area, you may not be able to connect to the satellite in space.
After all… the choice is overwhelming for consumers and the market decides what becomes successful.
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