The Missing Piece: Interoperability in Africa’s Satellite Market – Musings from Jane Egerton-Idehen

Sometime around 2014, while working for Ericsson in Ghana, we sought ways to drive broadband usage using digital services for the Ghanaian market. We identified Mobile TV/Streaming Service as one of the value adds that could gain mass market appeal.

We approached a major subscription-based streaming service company to collaborate with the largest mobile operator in Ghana. We went to Silicon Valley, leveraging Ericsson’s global reach. The goal was to offer the service to the mass market, with the mobile operator as the distribution channel, especially for payments via Mobile Money, which had mass market appeal. At that time, there were fewer than 3 million debit card users in Ghana, and the major digital TV platform was DStv, which operated a different model. For example, users needed setup boxes, and the plans were considered expensive and not mass market.

The streaming service passed on the opportunity because they insisted on debit/credit card payments and were reluctant to try another method. Today in Ghana, the Mobile Money float is equaled or surpassed by only a few of the top banks. The agent model of Mobile Money created a fintech system that has become a distribution network, enabling business transactions and promoting financial inclusion.

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In organizational strategy, we say, “Culture eats strategy for breakfast,” a quote from Peter Drucker. I would say culture is key in embracing digital changes for a market. Understanding market realities and nuances is crucial in customer engagement and business development strategies. The case I mentioned was a missed opportunity for that company to break into the West African market a decade earlier. They failed to understand that:

• My client understood the market—they knew consumption patterns and preferred payment modes.
•  A collaboration would not only have introduced this streaming service earlier to Ghana but also probably led to market expansion into Sub-Saharan Africa and further collaboration.
• Local stakeholder engagement is priceless. Having a local representative is not the same as localizing your solution and adapting business models to that market.

Western models won’t always work in Africa. The key is to develop an effective business model and to ensure customer relevance. Don’t just be present locally—localize and adapt service offerings to the market realities.

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These were my morning musings as I wondered when someone in the Satellite OEM will develop Customer Premise Equipment or remotes that can work irrespective of the technology (LEO, GEO) or vendor. I believe interoperability and the high cost of customer acquisitions are two challenges that need to be addressed.

This is what Africa truly needs, especially when it comes to adopting satellite services and competitive pricing for end consumers. Just like with mobile operators, you don’t need to change your phone each time you change your mobile operator. You can also get a low-end mobile phone for less than $50 USD.

Jane Egerton-Idehen is a Nigerian engineer and the MD/CEO of Nigerian Communications Satellite Limited (NIGCOMSAT).