Ever since Starlink entered the Kenyan internet market, potentially disrupting the long-standing dominance of Safaricom, the telco has been deemed ‘cooked’, this is even as the company led by Peter Ndegwa continues to play more of its cards to ensure its dominance sticks. However, Starlink, the satellite internet service provider owned by SpaceX, has also started playing its cards in the space.
Both Safaricom and Starlink seem to have tried seducing the government and first impressions show Starlink had the better hand. This development has sparked fierce competition, leaving many to wonder: Is the goose cooked for Safaricom?
Starlink’s Entry and Impact
Starlink’s arrival in Kenya has been nothing short of revolutionary. Within a year of its launch, the company had already registered over 4,000 customers, offering speeds of up to 200 Mbps at a competitive price of KES 6,500. The company’s innovative approach includes a 50 GB package for KES 1,300 and a rental option for those unable to purchase the Starlink kit outright.
At this point the cards were dealt, faced with this new competition, Safaricom, with a weak hand, wrote a concerning proposal to the Communications Authority (CA) urging the regulator to block satellite internet providers operating from outside Kenya, specifically targeting Elon Musk’s Starlink.
However, Starlink was dealt the better hand, this is because the impact of the entry of the internet service in Kenya has been felt across various sectors, including the very government Safaricom is trying to seduce. The Nairobi City County Government, for instance, implemented a Starlink backup internet link at its Customer Service Centre, just days after Safaricom wrote to the CA. The Government says the upgrade has resulted in internet speeds ranging between 120 and 200 Mbps, ensuring uninterrupted service delivery even during primary network outages.
Tiras Njoroge, Chief Officer of ICT Infrastructure, expressed enthusiasm about the integration of Starlink technology, stating, “This upgrade will provide seamless, high-speed connectivity, allowing for faster and more reliable access to the Nairobi Pay system.” The move aligns with Governor Sakaja’s vision of leveraging technology to streamline operations and push Nairobi towards becoming a hub for digital innovation.
If all doesn’t work, try again! Instead of folding, Safaricom has decided to up its game. In a strategic move, the company has doubled the speed of its fibre internet packages without increasing prices. For instance, the 10 Mbps connection has been upgraded to 15 Mbps, while maintaining the price at KES 3,000. More impressively, the 100 Mbps package has seen a fivefold increase to 500 Mbps, priced at KES 12,500.
According to Techcabal, Safaricom has also introduced new offerings to maintain its market position:
- A family share plan that bundles mobile voice, data, SMS, and home internet into a single package, offering up to 20% discount.
- Dedicated internet plans for businesses, catering to various sizes from micro-companies to growing enterprises.
- The introduction of Kenya’s first-gigabit speed (1 Gbps) internet package, priced at KES 20,000.
Mr. Ndegwa has emphasized the company’s commitment to meeting increasing demand and providing enhanced value for customers. The company also plans to conduct estate clinics, increase capacity in congested areas, and offer 4G and 5G options for homes outside fibre coverage.
As the battle between Safaricom and Starlink intensifies, Kenyan consumers stand to benefit from improved services and competitive pricing. The entry of Starlink has not only provided an alternative to traditional internet providers but has also pushed established players like Safaricom to innovate and improve their offerings.
While it’s premature to say that “the goose is cooked” for Safaricom, the company certainly faces its most significant challenge yet in maintaining its market dominance. The coming months and years will likely see further innovations and competitive strategies from both companies, ultimately leading to better internet connectivity for Kenyans.
As this digital revolution unfolds, one thing is clear: the future of internet connectivity in Kenya is looking brighter and faster than ever before. Whether through fibre or satellite, Kenyans can look forward to more reliable, accessible, and affordable internet services in the near future.
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