Powered by SpaceX, Starlink stomped into Kenya’s internet market in July 2023. Unlike local Internet Service Providers (ISPs), Starlink came with a deal so good to reject, offering high-speed internet with low latency, ideal for rural and underserved regions.....CLICK HERE TO READ THE FULL ARTICLE>>>
For customers who cannot afford a kit that typically goes for $350, Starlink is offering a renting option for just $15.15 per month, with an extra one-time activation fee of $21.
Starlink has offered its customers different options: a 50 GB data plan, which costs $10, and an unlimited data package ($50.50). These packages offers high speeds of up to 200 Mbps.
By providing reliable yet affordable direct-to-consumer satellite internet solutions, Starlink’s rapid growth definitely marks a significant shift in Kenya’s internet landscape, circumventing traditional infrastructure in unprecedented ways.
According to the Communication Authority of Kenya (CAK), Starlink’s user base has increased tenfold in just the first quarter of 2024.
Although Starlink’s entrance into Kenya’s market is poised to democratize internet access in Kenya, local competitors are feeling the heat, with Safaricom sweating the most. Over the years, Safaricom has been accused by local competitors (Airtel and Telkom) of monopoly. However, it’s now their turn, as they will have to deal with the new big fish in the industry, Starlink.
In a deliberate letter addressed to CAK, Safaricom urgues that satellite providers should be required to partner with local network operators before obtaining licenses.
According to Safaricom, by operating as infrastructure providers, Starlink will have the liberty to invest in the country while adhering to local regulations. Such concerns highlight the potential impact of Starlink’s pricing strategy on the local telecom industry.
Competition often breeds innovation, and with Starlink holding the cards, local ISP’s, including Safaricom, have no option but to step up their game. As such, in a bid to lure back loyal customers who have so far migrated to Starlink, Safaricom has been compelled to lower their prices.
This is why, through one of their recent marketing messages, Safaricom persuades customers who have recently shifted to Starlink to reactivate their fiber accounts for just $38.61 for a 40 MB monthly package that was initially going for $50.19.
Safaricom’s insistence that Starlink should operate as an infrastructure provider rather than a direct service provider is a clear attempt to protect its market share.
However, with the era of monopolistic dominancy nearing an end, to remain relevant and competitive, Safaricom needs to accept the prevailing reality, embrace change, and focus on delivering value to its customers….CLICK HERE TO READ MORE ARTICLE>>>
