Kenya’s Safaricom is taking a strategic step towards satellite broadband partnerships as it seeks to counter the rising influence of Elon Musk’s Starlink. The move signals a growing rivalry that could reshape Internet access across the country, especially in hard-to-reach areas.
Speaking during a recent earnings call, Safaricom CEO, Peter Ndegwa, revealed that the company is exploring opportunities to work with satellite Internet firms. This initiative aims to extend broadband services to remote parts of Kenya currently underserved by traditional infrastructure.
The announcement comes on the heels of Starlink’s remarkable growth in Kenya. In just three months, the satellite provider more than doubled its market share to 1.1%, adding over 8,700 new users and significantly outpacing its previous yearly growth, according to the Fintech Association of Kenya.
In response, Safaricom has appealed to the Communications Authority of Kenya (CA) to mandate that satellite Internet providers, including Starlink, form partnerships with local mobile network operators.
According to a report by Reuters, the telecom giant argues that such partnerships would promote infrastructure investment, legal compliance, and local job creation.
Earlier this year, Kenya’s CA proposed to significantly increase the 15-year licensing fees for satellite Internet providers (ISPs) from $12,302 to $115,331.
Despite the regulatory push, Safaricom is not closing the door on cooperation. Ndegwa noted that discussions are ongoing between the telecom operator and Starlink, suggesting a possible partnership in the future.
Interestingly, Safaricom planned to launch satellite Internet services with AST SpaceMobile in 2023 to rival Starlink. Its interest in a new partnership could mean the plan didn’t work out.
However, as the competition heats up, both companies are innovating to win over Kenyan users. Safaricom has rolled out enhanced broadband packages, while Starlink’s satellite-based service offers an alternative for consumers in rural or underserved locations.
The rivalry is also sparking broader regulatory conversations about the integration of new technologies into Kenya’s digital economy.
Ultimately, the clash between Safaricom and Starlink is ushering in a new era for Kenya’s broadband sector. As each company works to capture a greater share of the market, consumers stand to benefit from faster speeds, better service, and more inclusive connectivity.
Source: https://techpoint.africa/news/safaricom-satellite-partnerships/
