Kenya’s Top Telco Bothered By Services Like Starlink, Seeks Regulatory Action

Kenya’s largest telecommunications company, Safaricom, has called for stricter regulations on satellite internet providers like Elon Musk’s Starlink, a move that could significantly impact the country’s internet landscape.

The partly-government-owned telco, which dominates the Kenyan market, has expressed concerns about the potential disruption and competition posed by these new entrants.

Safaricom’s plea comes as Starlink has gained significant traction in Kenya, offering faster speeds and more affordable pricing compared to traditional terrestrial internet providers. The company’s expansion has been fueled by aggressive marketing, including promotions and the introduction of cheaper monthly plans.

According to the Communications Authority of Kenya (CA), Starlink’s user base in the country has grown tenfold in the first quarter of 2024 alone. Safaricom fears that the continued growth of satellite internet providers could erode its market share and revenue.

In a leaked July memo to the CA, Safaricom argued that satellite internet providers should not be granted independent licenses but should instead be required to partner with existing local mobile network operators. The company believes that this would ensure that these providers invest in Kenya, employ local people, and comply with the country’s laws and regulations.

“We propose that the CA instead consider mandating that satellite service providers to only operate in Kenya subject to such providers establishing agreement with an existing local licensee,” Safaricom said in the memo seen by WT.

Safaricom also expressed concerns about the potential challenges in regulating satellite internet providers. The company noted that these providers often operate without a physical presence in the country, relying on third parties and resellers to distribute their hardware and connect users. This makes it difficult for the government to ensure accountability and compliance.

“Granting a license to an entity that will typically operate in Kenya without having a physical presence in the country (via third-party partners/resellers only) would mean negligible control for the government to ensure accountability for non-compliance issues,” Safaricom said.

The CA has not yet responded to Safaricom’s proposal, but it is expected to weigh the company’s concerns against the potential benefits of allowing satellite internet providers to operate in Kenya. If the CA decides to impose stricter regulations on satellite internet providers, it could significantly impact the country’s internet market.

Starlink is yet to react to the development. However, the company has previously stated that it is committed to expanding its services in Africa and providing affordable internet access to underserved areas.

Safaricom’s move against Starlink comes as the company is also exploring its own satellite internet services. The company has said that it believes satellite technology has the potential to provide affordable and reliable internet access to rural areas of Kenya, which are currently underserved by traditional broadband networks.