Safaricom, Kenya’s largest telecommunications provider, has initiated a dispute with Elon Musk’s Starlink by requesting that the Communications Authority of Kenya (CA) reevaluate its policy on granting licenses to satellite internet providers. This move could significantly impact Starlink, a subsidiary of Musk’s SpaceX, which has been rapidly expanding its user base in Kenya.
In a recent letter to David Mugonyi, the CA’s Chief Executive Officer, Safaricom expressed concerns that issuing independent licenses to satellite service providers might lead to unauthorized connections and could negatively affect mobile network quality. The telco has urged the CA to require satellite providers to partner with existing local internet service providers rather than operate independently.
Safaricom’s memo, dated July 5, 2024, argues that without a local presence, satellite operators like Starlink might cause interference with mobile networks, which could disrupt service quality and harm end users. The company proposes that satellite providers should be restricted to operating through agreements with established Kenyan licensees to mitigate these risks.
Starlink, which entered the Kenyan market in July 2023, has seen a significant increase in subscribers, driven by its competitive pricing and promotions. According to CA data, satellite internet subscriptions grew by nearly 64% from December 2023 to March 2024. Starlink’s introduction of a rental plan for its equipment, priced at Sh1,950 per month plus data costs, aims to make its service more accessible to Kenyans.
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Kenya’s fixed internet sector is currently led by Safaricom, followed by JTL with 22.6%, Zuku at 18.8%, and Poa Internet Kenya with 13%. The country’s internet connectivity, at 29% by the end of 2023, remains below the global average of 65%. Despite this, Kenya offers some of the most affordable mobile data in the region, thanks to a favorable policy environment and relatively high incomes.
Starlink’s operations in Kenya are part of a broader strategy to expand across Africa, where the company faces various regulatory challenges. Some African nations have classified Starlink as illegal, citing concerns over content control and licensing issues.
Safaricom’s call for regulatory changes reflects broader concerns about the integration of satellite internet with existing telecommunications infrastructure, aiming to ensure a balanced and effective digital environment in Kenya.
