Safaricom, Kenya’s biggest telco, has asked the Communications Authority (CA) to block satellite internet providers with operations in other countries. The move could lock out Elon Musk-owned Starlink which has seen increased adoption due to promotions and cheaper monthly plans.
“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 a memo seen by TechCabal.
In the July 15 memo, Safaricom asked the regulator to assess the risks of allowing satellite internet providers to operate without an agreement with local companies.
Safaricom did not immediately respond to a request for comments.
“Satellite service providers should therefore not be granted a license directly/independently but rather only permitted to operate under the license rights of the local licensee.”
The telco said allowing the satellite ISPs to operate without a physical local presence would make it hard for the government to regulate their operations.
CA did not immediately respond to a request for comments.
Since its launch in 2023, Starlink has relied on third parties and resellers to distribute their hardware and connect users, an issue Safaricom raised in their memo to CA.
Through discounts on its hardware and the introduction of a cheaper $10 monthly plan, data from CA shows that Starlink users grew tenfold in Q1 2024. On August 21, Starlink introduced a $15 monthly kit rental plan for users who cannot afford $350 to purchase the hardware.
Starlink’s growing popularity has pushed existing local players to increase marketing to retain customers. Safaricom, which has talked about launching a satellite internet service, has a firm grip on the data market, with a 36.7% market share.
Starlink did not immediately respond to a request for comments.
“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. This would mean negligible control for the government to ensure accountability for non-compliance issues,” Safaricom said.
Source: https://techcabal.com/2024/08/23/safaricom-starlink/