After identifying demand for connectivity in sub-Saharan Africa, Facebook and Eutelsat have reached a multi-year agreement to deliver satellite broadband internet connectivity to the region. The Facebook Eutelsat deal will provide employment and sustainable development in the Information and Communication Technology sector for about 48 sub-Saharan African countries.

In Nigeria, IT experts place the number of effective ISP companies at 10 or less. ISP companies are responsible for providing, distributing and regulating internet access to individuals, organizations and government establishment within the space they operate. The arrival of Facebook and Eutelsat has implications for existing ISP companies in the region.

Productivity

According to Business Day, there are over 180 registered ISP companies in Nigeria, also, data from Internet Live Stats provides that Nigeria has about 67.1 million internet users, out of a population of 178 million. Yet, about 90 percent of internet users, cannot access proficient services. The arrival of Eutelsat and Facebook merger will likely bring a lot of attention to the poor output of the numerous ISP companies in the country. It may also result in increased competition as indigenous ISPs struggle to maintain their customer base in the face of a stronger competitor.

Pressure from ISPs on government for policy change

One of the challenges outlined by experts in the Nigerian IT sector is the prohibitive cost of bandwidth as well as the country’s underdeveloped distribution networks, including national long distance fibre, metro fibre and last mile connectivity. ISPs suffer these limitations but with the arrival of a foreign company, there will likely be a push from indigenous ISPs on Nigerian Communications Commission (NCC) and the Government, to implement friendly policies that will result in the tackle of these challenges.

ISP’s clamoring for subscribers attention

There is already a healthy competition between Nigerian ISPs, however, when Facebook and Eutelsat offer a superior service to consumers, there will be a surge in attempts by ISPs to drive customer satisfaction beyond the norm. While this may be advantageous to subscribers, it could also result in battles between firms.

IT companies in Nigeria need to upgrade their services before Facebook and Eutelsat set up shot, to maintain a certain standard for their customers without losing the latter to newcomers.