Since its launch in Kenya in July 2023, Starlink, the satellite internet service by Elon Musk’s SpaceX, has rapidly transformed the local internet landscape. Within just 18 months, this American tech giant has captured the attention of Kenyan consumers and sparked significant reactions from traditional internet service providers (ISPs).
What is Satellite Internet?
Satellite internet operates via satellites orbiting Earth, which transmit signals to an internet service provider and, subsequently, to a modem in homes or offices. The setup includes a satellite dish installed at a strategic location to receive signals and a Wi-Fi router to connect various devices. This technology is particularly beneficial in rural areas where traditional broadband options like cable or fiber optic are not feasible.
Starlink, which began deploying satellites in 2019, claims to have launched over 3,000 satellites into low-Earth orbit. The company boasts of providing internet speeds exceeding 150 Mbps anywhere on the globe, provided the satellite dish has an unobstructed view of the sky.
In contrast, local providers such as Safaricom, which started rolling out 5G services in 2022, promise speeds up to 100 Mbps. However, 5G coverage remains limited, and 5G routers are not yet widespread.
Competitive Costs and Impact
Starlink’s entry into Kenya has been marked by competitive pricing strategies. Initially, the Starlink kit was priced at Ksh.74,000. However, as the company established its presence, prices began to drop, with the kit now available for as low as Ksh.29,000 through various retail channels, including Carrefour and Jumia.
Additionally, Starlink recently introduced a rental option: a one-time activation fee of Ksh.2,700 and a monthly rental fee of Ksh.1,950, with service plans starting at Ksh.1,300 for 50 GB of data. This pricing undercuts many local ISPs; for example, Airtel’s 50 GB package costs Ksh.3,000, while Safaricom’s 45 GB plan is priced at Ksh.2,500.
Reaction from Local ISPs
The rapid uptake of Starlink’s services has unsettled traditional ISPs, particularly Safaricom, which commands a significant share of Kenya’s fixed broadband market. Safaricom has formally requested the Communications Authority of Kenya (CA) to reconsider its licensing policies for satellite internet providers. The company argues that satellite services might lead to interference with mobile networks and potential illegal connections.
Safaricom’s proposal includes a suggestion for satellite providers to operate only under agreements with existing local licensees, aiming to mitigate potential conflicts and ensure better coordination between different types of internet services.
Market Dynamics and Competition
Despite Starlink’s growing presence, it is not the only player in Kenya’s satellite internet market. Other providers, such as Vizocom, Skynet by Telkom, NTvsat, and Viasat, also offer satellite-based services. Safaricom has hinted at launching its own satellite internet service, signaling increased competition.
The growth of satellite internet usage in Kenya is evident from CA data, which shows a rise from 1,354 users in the three months to September 2023, to 2,933 by December 2023. The excitement surrounding Starlink’s offers suggests that these numbers have likely increased further.
Global Context
Starlink’s influence extends beyond Kenya, with operations in Rwanda, Zimbabwe, and Nigeria. However, the company has faced challenges in other regions; for instance, in Cameroon, Starlink’s equipment was seized due to licensing issues.
Conclusion
Starlink’s entry into Kenya has significantly disrupted the local internet market by offering competitive prices and high-speed internet. While the service has attracted many consumers, it has also raised concerns among traditional ISPs about potential interference and market disruption. As Starlink continues to expand its presence and other satellite providers also vie for market share, Kenya’s internet landscape is poised for further transformation.
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