In just 18 months since entering the Kenyan market, American tech giant Elon Musk’s satellite internet company, Starlink, has significantly disrupted the local network market. By offering increasingly attractive deals and faster speeds, Starlink is capturing the attention of Kenyan consumers and causing traditional internet service providers (ISPs) to take notice, though some are feeling apprehensive.
Launched in Kenya in July 2023, Starlink, a subsidiary of Musk’s SpaceX, aims to compete with local ISPs such as Safaricom, Telkom, Faiba, and Zuku, which rely on fiber-optic technology.
What is Satellite Internet?
Satellite internet uses satellites orbiting Earth to transmit signals to an internet service provider, which then delivers the signal to a modem at home or office. A satellite dish installed at a strategic location receives the signal, and a Wi-Fi router provides connectivity to devices like phones and computers.
This type of internet is particularly useful in rural areas where cable or fiber-optic options are unavailable.
Starlink has launched over 3,000 satellites into low-Earth orbit since 2019 and claims to deliver speeds exceeding 150 Mbps wherever its satellite dish has a clear view of the sky. In comparison, local providers such as Safaricom, which began rolling out 5G in 2022 with promises of speeds up to 100 Mbps, still have limited coverage and few 5G routers.
Competitive Costs
Since its launch in Kenya in July 2023, Starlink has introduced competitively priced internet packages and improved speeds. Initially, the Starlink kit cost Ksh.74,000, but prices have decreased as the kits became available at retail stores like Carrefour and online platforms such as Jumia.
Earlier this year, Starlink reduced the hardware cost to Ksh.39,500, and last month further lowered it to Ksh.29,000.
Additionally, Starlink recently introduced a kit rental option in Kenya. Customers now pay a one-time activation fee of Ksh.2,700 and a monthly hardware rental fee of Ksh.1,950. Service plans start at Ksh.1,300 per month for a 50 GB data plan, with speeds of up to 200 Mbps. In comparison, Airtel charges Ksh.3,000 for a 50 GB monthly package, while Safaricom offers a 45 GB monthly plan for Ksh.2,500.
Safaricom Protest
Safaricom has recently requested the Kenyan government to reassess its decision to issue licenses to satellite internet providers. Dominating the local fixed broadband market with a 36.7% share, Safaricom is concerned about potential threats posed by satellite internet services, including illegal connections and interference with mobile network operations.
In a letter to Communications Authority of Kenya (CA) CEO David Mugonyi dated July 5, 2024, Safaricom proposed that the CA require satellite service providers to enter into agreements with existing local licensees rather than operating independently.
Safaricom argues that without effective management and coordination, satellite services could interfere with mobile networks, negatively impacting users and related socio-economic benefits.
According to CA data, Safaricom is followed by JTL with a 22.6% market share, Zuku with 18.8%, and Poa Internet with 13%. Although Starlink’s entry into the Kenyan market has generated significant customer interest, it is not the only satellite service provider in the country.
Others include Vizocom, Skynet by Telkom, NTvsat, and Viasat. Safaricom itself has been working towards launching its satellite internet services.
While there are no official figures on Starlink’s current market presence in Kenya, CA data shows an increase in satellite internet users from 1,354 in the three months ending September 2023 to 2,933 in the quarter ending December 2023.
The surge in interest driven by Starlink’s competitive offers suggests that these numbers have likely risen further this year.
Starlink also operates in other countries such as Rwanda, Zimbabwe, and Nigeria. However, it has faced challenges in some regions, including Cameroon, where authorities seized its equipment at ports due to the lack of a license.
