Safaricom, Kenya’s leading telecommunications company, has raised concerns about the potential risks and harm to the Kenyan telecommunications landscape with the granting of independent licences to satellite service providers. In a recent letter to the Communication Authority of Kenya (CA), Safaricom urged caution and proposed an alternative approach. The company suggested that satellite service providers should only be allowed to operate in Kenya through partnerships with existing local licensees. This model would see satellite companies functioning as infrastructure providers to licensed operators, fostering innovation while mitigating potential negative impacts.
To support its claims and showcase its commitment to innovation, Safaricom highlighted its partnership with Avellan Space Technology and Science (AST) for a space mobile solution. AST serves as an infrastructure provider to Safaricom for this service, which aims to explore the potential of Direct-to-Device technology within the existing regulatory framework. This innovative approach would enable direct radio access service from space stations to end-user terminals on Earth, potentially revolutionizing mobile connectivity in Kenya.
Furthermore, Safaricom emphasized its significant investments in acquiring national operating licences and building mobile network infrastructure throughout Kenya. The company reaffirmed its dedication to complying with local laws and regulations, contributing to Kenya’s socio-economic objectives, and reinforcing its commitment to innovation and compliance.
The news of Safaricom’s concerns comes in the wake of Starlink’s recent launch of a kit rental option in the Kenyan market. Customers can now rent Starlink hardware for KSH 1950 (USD 15), a move that has been welcomed by Kenyans on social media as a disruptive technology and enabler of internet services.
Beyond Kenya, a broader trend is emerging across Africa in response to Starlink’s entry into African markets. Local telecommunications companies are positioning themselves to maintain their competitive edge, recognizing the potential disruption to their existing business models and market shares. In Nigeria and Cameroon, concerns have been raised that the introduction of Starlink could threaten the operation of state-owned telcos and other Internet Service Providers (ISPs). The Minister for Posts and Telecommunications in Cameroon has warned that the state-owned telecom operator, Camtel, must improve its services to avoid being overtaken by Starlink.
In Nigeria, the Association of Licensed Telecom Operators has expressed concerns that without proper regulation, Starlink’s presence could lead to the demise of existing ISPs and stagnate the growth of traditional telecom companies. Local telcos in Nigeria have already made significant infrastructure investments to provide internet coverage to rural and remote areas, creating a potential conflict of interest with Starlink’s goal of providing high-speed internet access to these areas.
In response to the changing landscape of satellite internet services, mobile network operators across Africa are taking action to compete effectively with upcoming ISPs. Lower prices from local internet providers across many African nations have already been observed as they seek to solidify their position in the market. Zimbabwe’s state-owned TelOne, for example, has partnered with Eutelsat OneWeb to leverage OneWeb’s LEO satellite network and offer comparable high-speed, low-latency internet services in response to Starlink’s scheduled launch.
Despite the challenges posed by Starlink’s entry into the African market, some local telcos remain confident in their ability to compete. Liquid Intelligent Technologies in Zimbabwe, for instance, does not view Starlink as a direct threat to its operations and has made recent price adjustments in response to broader market dynamics rather than potential competition from Starlink.
However, as Starlink continues its expansion across Africa, regulatory hurdles and pushback from local telcos and governments are likely to persist. Several African nations have raised concerns about the potential threats to national security posed by Starlink’s presence, particularly in terms of information control during politically sensitive times. The reality is that Starlink’s entry into the African market poses a significant threat to local telecom monopolies in crucial areas like internet access, affordability, and reliability.
In conclusion, with Starlink’s rapid expansion and disruptive technology, local telecommunication companies in Africa must adapt, innovate, or face the risk of being phased out progressively. Collaboration with providers like Starlink could offer a potential lifeline, leveraging the company’s strengths for the benefit of telcos and society at large. By embracing new technologies and adapting their business strategies, local telcos can address the changing landscape of satellite internet services in Africa and ensure continued relevance in the evolving telecommunications industry.
