Safaricom CEO Peter Ndegwa
Safaricom, Kenya’s telecommunications market leader, has asserted that it is open to partnering with Starlink, in a reversal of its previous position.
“We’ve had some discussions and we’ll continue to have them to the extent that they complement what we’re offering,” CEO Peter Ndegwa told Bloomberg.
Safaricom and Starlink’s partnership could benefit Kenyan consumers. The company’s extensive network could provide a strong distribution channel that could be key to reducing the cost of the Starlink kit, which currently costs KES 45,000 ($350). However, the specific details of any such partnership moving forward remain undisclosed.
In August, Safaricom wrote to the Communications Authority of Kenya (CA) to impose stricter regulations on independent satellite internet providers like Starlink. The CA maintained that Safaricom had the right to propose preconditions for market entry, but the move was criticized by some industry experts who accused Safaricom of trying to curb Starlink’s market entry. It was done.
Regardless of whether a partnership develops, the existing competition between both ISPs indicates that new market entrants are benefiting consumers with price-sensitive products.
Starlink has also changed the way it prices Safaricom’s fiber optic packages, apparently to maintain its top position as a fixed internet service provider.
Last Monday, Safaricom responded by upgrading fiber speeds by up to five times and introducing 1 Gbps packages. This was previously not possible in the local fixed internet market. Starlink countered with a more affordable residential package offering speeds of up to 100Mbps for KES 4,000 ($31) per month, and a cheaper Starlink Mini kit for KES 27,000 ($210).
These developments are a positive step towards making fixed data services more accessible to Kenyans.
