Safaricom, Kenya’s leading telecommunications provider, has urged the Communications Authority (CA) to restrict satellite internet providers from operating in Kenya without partnering with local licensees. This request could notably impact the operations of Elon Musk’s Starlink, which has quickly gained traction in Kenya due to its aggressive promotions, competitive pricing, and superior service.
In a memo dated July 15, Safaricom asked the CA to evaluate the risks of allowing satellite internet providers to operate independently. The memo proposed that the CA mandate satellite service providers to operate in Kenya only if they establish agreements with existing local licensees.
Safaricom raised concerns that allowing satellite ISPs to operate without a physical presence in Kenya would impede the government’s ability to regulate these providers effectively. The company argued that satellite service providers should not receive licenses directly but should operate under the license rights of a local licensee.
Since its launch in Kenya in 2023, Starlink has relied on third-party distributors and resellers for hardware and user connections. Safaricom highlighted this as a significant issue, suggesting that without a local partner, the government would struggle to enforce regulatory compliance.
Despite its dominant position in Kenya’s internet market, with a 36.7% share, Safaricom has not significantly improved internet speeds in the country. Kenya’s average download speed of 13.59 Mbps ranks it 172nd globally and 22nd in Africa, below the global average of 55.58 Mbps. In contrast, Starlink offers speeds exceeding 100 Mbps. Starlink’s popularity in Kenya has surged, partly due to hardware discounts and a $10 monthly plan, leading to a tenfold increase in users during Q1 2024. Recently, Starlink introduced a $15 monthly kit rental option for users unable to afford the $350 hardware purchase. This growth has prompted local competitors, including Safaricom, to intensify their marketing efforts to retain market share.
Safaricom has also sought to expand its coverage through a partnership with satellite provider AST Mobile. However, AST Mobile, which meets Safaricom’s “local licensee” criteria, has only three satellites in orbit compared to SpaceX’s over 6,000.
As Kenya’s largest telecommunications company, Safaricom has also limited competition by opposing the merger of Airtel Kenya and Telkom Kenya, citing concerns over debt repayment and frequency allocation.
While it is crucial for the Communications Authority (CA) to support local operators, fostering a level playing field that promotes enterprise, startup growth, and competition is equally important. The CA should encourage partnerships and collaborations between local internet service providers and global operators. These alliances are vital as they combine local market expertise with advanced global technology and investment. Such collaborations can address service gaps, improve network reliability, and accelerate the deployment of high-speed internet, ultimately benefiting consumers with better services and lower prices.
Facilitating these partnerships can drive innovation and create a more competitive market environment, leading to enhanced access, affordability, and digital infrastructure. By establishing regulatory frameworks that support collaboration rather than solely focusing on competition, the CA can help create a dynamic ecosystem where both local and global players thrive. This approach not only improves consumer access and value but also supports broader socio-economic development goals.
Starlink is available in 32 countries worldwide, including Nigeria, Kenya, Mozambique, Rwanda, Malawi, and Zambia in Africa.
