The largest telecom company in Kenya, Safaricom, has requested that the Communications Authority (CA) block satellite internet service providers with operations abroad.
Elon Musk’s Starlink, which has gained popularity thanks to discounts and more affordable monthly plans, may be locked out by the change.
In a memo obtained by the Media, Safaricom stated, “We propose that the CA instead consider mandating that satellite service providers only operate in Kenya subject to such providers establishing an agreement with an existing local licensee.”
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In the July 15 document, Safaricom requested that the regulator evaluate the potential dangers of permitting satellite internet providers to function without a contract with regional businesses.
Safaricom did not immediately answer an inquiry for comments.
“Therefore, satellite service providers should only be allowed to operate under the licence rights of the local licensee, rather than being granted a licence directly or independently.”
Telco Perspectives on Satellite ISP Challenges
The telco said it would be difficult for the government to regulate the satellite ISPs’ operations if they could function without a physical presence in the area.
CA did not answer a request for comments right away.
Safaricom raised this concern in its memo to CA. Since its introduction in 2023, Starlink has depended on resellers and other parties to market its devices and connect subscribers.
Data from CA indicates that Starlink customers increased tenfold in Q1 2024 thanks to sales on its gear and the launch of a less expensive $10 monthly subscription. On August 21, Starlink announced a $15 monthly kit rental plan for customers who cannot afford the $350 for the hardware.
Understanding Satellite Internet Competition in Kenya
Due to Starlink’s rising popularity, local competitors have been forced to increase their marketing to keep clients.
Safaricom, which has expressed interest in creating a satellite internet service, holds a 36.7% market share in the data market.
Starlink did not immediately answer a request for comments.
“Granting a licence to a business that would primarily conduct business through third-party partners and resellers rather than having a physical presence in Kenya.
“This would imply that the government would have minimal capacity to hold people accountable for non-compliance issues.” according to Safaricom.
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About Safaricom
In Kenya, Safaricom is the top supplier of integrated communication solutions. In addition to offering a wide range of top-notch financial, broadband, and telecommunications services, Safaricom aims to improve Kenyans’ quality of life by supporting community projects and offering value-added services.
The company boasts the most comprehensive modern mobile network coverage in Kenya, with over 29 million subscribers and an estimated market share of 67%.
Its experienced shareholders, competitive tariffs, efficient nationwide dealer network, and superior staff and management allow it to hold its position as the leading mobile market in the region.
