Safaricom Responds to Mounting Pressure from Starlink with Internet Speed Upgrades

Safaricom, Kenya’s leading mobile operator, has introduced a significant upgrade in its internet speeds for home and business customers in a move to stay ahead of intensifying competition.

With an eye on the evolving competition of the market, this marks the second time the telecommunications giant has enhanced its data speeds in less than 2 months, a strategy likely driven by the rising competition from international players such as Starlink.

Since its launch in June 2023, Starlink’s satellite technology has introduced a fresh dynamic to Kenya’s internet market. As a global satellite provider, Starlink has offered a new and highly competitive option for internet users, pushing Safaricom to up its game.

In response to this new competition, Safaricom has upgraded its internet packages significantly, an effort aimed at staying ahead in the market.

One of Safaricom’s most recent moves is the introduction of a new ultra-fast 1000Mbps (Gigabit per second) Platinum plan, priced at KSH 20 K (USD 155) per month. This ultra-fast plan is designed for heavy users such as gamers, content creators, and virtual reality enthusiasts, offering a compelling alternative to Starlink’s offerings. For instance, while Starlink provides speeds of up to 200Mbps, Safaricom’s new Platinum plan sets a higher bar, making it the first local provider to deliver gigabit speeds for home use.

To further solidify its position, Safaricom has made across-the-board upgrades to its existing plans. Customers who previously subscribed to a 10Mbps connection can now enjoy speeds of 15Mbps for the same price of KSH 3000 (USD 23). Similarly, the 40Mbps package has been doubled to 80Mbps at KSH 6300 (USD 49), and the premium 100Mbps package has been increased fivefold to 500Mbps at KSH 12.5 K (USD 97) per month. These enhancements are part of Safaricom’s broader strategy to offer more value without increasing the cost, ensuring its customers can perform demanding online activities such as high-definition streaming, gaming, and large data transfers with ease.

Complementing these changes is the introduction of the Family Share plan, an integrated solution that combines mobile voice, data, SMS, and home internet into one package. This plan, which can be shared among up to five family members, promises to offer convenience and cost savings, particularly through a 20% discount on the Bronze plan compared to purchasing the services separately.

Peter Ndegwa, Safaricom’s CEO, emphasized that these changes are part of the company’s efforts to deliver both a superior experience and enhanced value to its customers. “We have enhanced our home internet speeds to cater to increased demand and usage, ensuring reliable connectivity for our users,” Ndegwa stated. He highlighted that the company’s new offerings were designed to handle even the most demanding internet activities, including cloud computing and virtual reality, further cementing Safaricom’s commitment to its customer base.

The company’s focus extends beyond residential clients. Safaricom has also revamped its Business Fibre plans, offering new speeds of up to 1Gbps for medium and large enterprises, ensuring that businesses enjoy the flexibility and reliability they need. For instance, the 15Mbps shared option, tailored for micro-businesses, comes with 5GB of mobile backup data, while larger enterprises can take advantage of backup options over fibre, 5G, or wireless connectivity. The introduction of features like 24/7 proactive monitoring and 99.99% uptime makes these plans even more attractive to enterprise customers looking for a seamless experience.

Safaricom noted that it continues to expand its fibre network, adding over 3,000 kilometres in the last financial year, and bringing its total coverage to over 17,000 kilometres. The telco also claims it has its network extension has seen an influx of new customers, with over 370,000 homes and 32,000 businesses now connected to Safaricom’s fast and reliable internet services.

However, despite these improvements, Starlink continues to present a formidable challenge. Priced at KSH 6,500 (USD 50) per month with the option of a 50GB package for KES 1,300 (USD 11), and offering flexible rental options for its equipment, Starlink’s satellite service is especially appealing in remote areas where fibre expansion remains costly or impractical. Starlink’s rapid growth in the country, with over 4,000 customers by mid-2024, is a clear indicator of the competition ahead.

Recognizing the growing threat posed by Starlink, Safaricom’s response to this challenge has not only been technological but also regulatory. In July 2023, the company successfully lobbied the Communications Authority of Kenya to regulate satellite internet providers, arguing for a level playing field to protect local operators. The regulator backed Safaricom, highlighting the need to safeguard local operators and ensure a balanced playing field.

As this battle between terrestrial and satellite internet services intensifies, the ultimate beneficiaries are likely to be Kenyan consumers. With Safaricom and Starlink pushing each other to offer faster speeds, more reliable connections, and competitive pricing, the landscape for internet access in Kenya is set for a transformative shift, bringing better service to homes and businesses across the country.