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Home»Business»Why Safaricom wants to block satellite ISPs like Starlink
Business

Why Safaricom wants to block satellite ISPs like Starlink

Samuel NjihiaBy Samuel NjihiaAugust 25, 2024Updated:August 26, 2024No Comments2 Mins Read
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Starlink
Starlink introduced a $15 monthly kit rental. (Photo: Courtesy)
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Safaricom is lobbying the Communications Authority (CA) to block foreign satellite internet providers (ISPs), including Elon Musk’s Starlink.

The telco has written to the CA that it should compel satellite providers to operate in Kenya solely under an arrangement with a local licensee.

The Nairobi Law Monthly September Edition

“We would propose that the CA consider, instead, mandating that such satellite service providers only carry out their operations in Kenya subject to such providers entering into an agreement with an existing local licensee,” Safaricom said in a July 15 memo seen by Nairobi Law Monthly.

The company is concerned that satellite ISPs operating without a physical presence in Kenya can evade stringent local regulations, making it difficult for authorities to enforce regulatory oversight.

“Satellite service providers should therefore not be licensed directly/ independently but only be allowed to operate under the license rights of the local licensee,” Safaricom said.

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Starlink, which launched Kenyan operations last year, has been relying on third parties for distribution.

However, on August 21 the company unveiled a $15 monthly kit rental for individuals who cannot afford the Starlink hardware that retails for $350.

The rental service, seen as a game-changer, coupled with Starlink’s competitive pricing, including a $10 monthly plan, has prompted local telcos to rethink their strategies.

The Nairobi Law Monthly September Edition

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Samuel Njihia

The Nairobi Law Monthly September Edition

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