Safaricom, Kenya’s leading telecom operator, has called for the restriction of the operation of foreign internet providers like Elon Must’s Starlink in Kenya.
In a letter addressed to the Communication Authority of Kenya (CA), Safaricom requested the regulator to obligate satellite internet providers in the country to only operate in partnership with local internet providers.
The telco urged the Communication Authority to evaluate the risks of independent licenses for satellite internet providers and the potential harm to Kenya.
“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 wrote in the letter.
“Under such agreement, Satellite service providers will appropriately operate as infrastructure providers to such licensee(s) and in so doing enable related innovation whilst avoiding the potential harm,’’ the telco added.
Safaricom expressed concern that permitting satellite providers to operate in the absence of a physical presence in the country creates an opportunity for them to avert regulations.
Starlink’s entry in Kenya faced a slow uptake due to the high cost of its hardware kit. However, the number of satellite internet users surged from 405 to 2,933 a few months after the company launched its operations.
The Elon Musk’s satellite internet provider has made strategic moves to increase uptake. In June this year, Starlink introduced a 50 GB data plan at a rate of Kshs 1,300 per month, which is significantly lower than Safaricom’s and Airtel’s charges for a similar package.
The rental service and lower monthly fees could threaten Airtel’s and Safaricom’s market dominance. Local internet service providers must initiate a strategy rethink.
Related: Starlink offers Kenyan Customers to Option to Rent kits
