Elon Musk’s ISP company, Starlink, has significantly intensified competition in the Kenyan market, particularly against Safaricom, the dominant player.
To counter Starlink’s aggressive pricing strategy, Safaricom is implementing several measures.
Safaricom has lowered its internet prices to attract customers who have switched to Starlink. For instance, it now offers a 40 Mbps monthly package for Ksh 4980, down from Ksh 6474.
This move aims to make its offerings more competitive against Starlink’s lower monthly fees.
The company is actively encouraging former customers to reactivate their fiber accounts.
Safaricom has expressed concerns about Starlink’s operations and, consequently, has urged the Communications Authority of Kenya to impose regulations on satellite internet providers.
Moreover, Safaricom believes that enforcing these regulations will ensure that satellite ISPs adhere to the same standards as local ISPs.
Therefore, they advocate for a regulatory framework that maintains fair competition and consumer protection in the industry.
They propose that these providers partner with local mobile network operators (MNOs) to ensure compliance with local laws and foster investment in Kenya.
To create a level playing field and counter Starlink’s market disruptions, Safaricom is consequently pushing for regulation.
The company argues that, without a physical presence in the country, allowing satellite ISPs to operate would significantly hinder the government’s ability to regulate their activities effectively.
Safaricom argues that, consequently, satellite ISPs should operate under a local company’s license to effectively comply with Kenya’s ISP regulatory framework.
Starlink offers a 50GB data plan for KSh 1,300, significantly undercutting Safaricom’s comparable package.
Hardware rental options let customers access Starlink services without the high upfront costs of traditional satellite internet. Customers can rent the hardware for a monthly fee, making it more accessible.
Starlink provides speeds ranging from 100 to 200 Mbps, which are way higher compared many local ISPs lie Safaricom and Airtel.
In summary, Safaricom is responding to Starlink’s competitive pricing and market strategies through price reductions, regulatory advocacy, and infrastructure investments.