Safaricom, Kenya’s largest telecommunications provider, has expressed openness to collaborations with satellite internet companies such as Elon Musk’s Starlink, signaling a shift in the dynamics of Kenya’s internet service landscape. While Safaricom remains steadfast in its belief that its fixed internet infrastructure remains unrivaled, it acknowledges the role of satellite internet in bridging connectivity gaps, particularly in rural and underserved areas.

In a recent interview with The Kenyan Wall Street, Safaricom CEO Peter Ndegwa emphasized that satellite internet should be viewed as a complementary service rather than direct competition. According to Ndegwa, Kenya’s local Internet Service Providers (ISPs) have made significant strides in connecting the population, particularly in urban areas. However, satellite internet offers a viable solution for regions with limited or no broadband infrastructure.

Satellite Internet as a Complementary Solution

“Satellite internet complements what fixed networks provide,” said Ndegwa. “In areas with reliable internet infrastructure, satellite internet is not needed. However, in rural and remote areas, where broadband connections are scarce, satellite internet fills the gap.”

Safaricom, a subsidiary of Vodafone, is not new to satellite communication technologies. Vodafone has been working with AST SpaceMobile, a satellite network company, on a three-year partnership to test and deploy satellite communications across the continent. Safaricom was selected as part of AST SpaceMobile’s preliminary satellite communications tests, highlighting the telco’s forward-looking approach to exploring diverse connectivity solutions.

Ndegwa added, “We don’t necessarily see satellite internet as competition. As long as we serve customers and deliver what they want, that is good for the country.”

Starlink’s Growing Presence in Kenya

Elon Musk’s Starlink has gained substantial traction in Kenya over the past year, driven by frustrations with the reliability and speeds of existing ISPs. Starlink, which uses a network of low Earth orbit satellites to provide high-speed internet, has garnered over 8,000 subscribers in Kenya, making it a formidable player in the local market.

Key to Starlink’s success has been its affordable mini kits and the introduction of a rental plan for its hardware, enabling more Kenyans to access satellite internet services. These innovations have made Starlink a preferred option for users in both urban and remote areas.

However, Starlink’s rapid growth has not been without challenges. The company recently announced a temporary suspension of new residential and roaming subscriptions in major urban areas across Africa due to bandwidth constraints. Elon Musk reassured users that Starlink is working to expand capacity in high-demand regions to meet the growing user base.

Safaricom’s Strategic Response

In response to the growing competition, Safaricom has ramped up its offerings by increasing internet speeds across its fixed packages, aiming to retain its customer base. This strategy aligns with Safaricom’s long-standing commitment to innovation and customer satisfaction.

Additionally, Safaricom has indicated its willingness to partner with satellite internet providers like Starlink to enhance connectivity. Such collaborations could pave the way for hybrid internet solutions that leverage the strengths of both terrestrial and satellite technologies.

Kenya’s Connectivity Landscape

Kenya’s internet penetration currently stands at approximately 88%, according to the Communications Authority of Kenya. While urban areas enjoy widespread access to high-speed broadband, rural and remote regions lag behind, often relying on mobile data or patchy fixed-line services.

Satellite internet offers an opportunity to bridge this digital divide. With its ability to reach remote areas without the need for extensive ground infrastructure, satellite internet is well-suited to complement existing networks and support Kenya’s Digital Economy Blueprint, which aims to transform the country into a globally competitive digital hub.

The Role of AST SpaceMobile and Vodafone

The partnership between Safaricom’s parent company, Vodafone, and AST SpaceMobile underscores the potential of satellite internet to transform Africa’s connectivity landscape. AST SpaceMobile aims to deploy a space-based mobile broadband network capable of connecting standard smartphones directly to satellites.

Safaricom’s involvement in AST SpaceMobile’s tests demonstrates its readiness to integrate satellite solutions into its service portfolio. This aligns with Safaricom’s broader strategy of leveraging technology to expand access and improve service quality.

Challenges and Opportunities

While the potential of satellite internet is immense, challenges remain. High equipment costs, bandwidth limitations, and the complexity of integrating satellite and terrestrial networks pose significant hurdles. For instance, Starlink’s equipment, even with its reduced pricing, remains expensive for many Kenyan households.

However, partnerships between established ISPs like Safaricom and satellite providers could address these challenges by offering bundled services, shared infrastructure, and subsidized hardware costs.

A Collaborative Future

Peter Ndegwa’s remarks highlight Safaricom’s openness to exploring synergies with satellite internet providers. By leveraging Starlink’s advanced satellite technology and Safaricom’s extensive terrestrial network, the two could create a robust and inclusive connectivity ecosystem.

For Kenya, such collaborations could accelerate digital inclusion, drive economic growth, and enhance service delivery in sectors like education, healthcare, and agriculture. With initiatives like the National Optic Fibre Backbone Infrastructure (NOFBI) and ongoing 5G deployments, Kenya is well-positioned to integrate satellite solutions into its broader connectivity framework.

Global Implications for Satellite Internet in Africa

Kenya’s engagement with satellite internet providers reflects a broader trend across Africa. Countries like Nigeria and South Africa have also seen the entry of Starlink and similar providers, highlighting the growing demand for reliable and high-speed internet.

The expansion of satellite internet in Africa aligns with global efforts to close the digital divide. Companies like Amazon (through Project Kuiper) and OneWeb are also planning to enter the African market, further intensifying competition and driving innovation.

Looking Ahead

As the battle for Kenya’s internet market intensifies, the collaboration between traditional ISPs and satellite providers could redefine the industry. Safaricom’s forward-looking approach, coupled with Starlink’s disruptive technology, sets the stage for a future where every Kenyan, regardless of location, has access to reliable internet.

For Safaricom, embracing satellite internet as a complementary service reflects its commitment to meeting the evolving needs of its customers. For Starlink and other satellite providers, Kenya offers a fertile ground to showcase the transformative power of satellite internet.

The journey to universal connectivity is far from over, but with innovations like these, Kenya is steadily advancing toward a more connected and inclusive future.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

15th November, 2024