Safaricom vs Starlink: Telco giant eyes entry into satellite space

Elon Musk’s Starlink has entered Kenya’s internet market, shaking up the landscape dominated by Safaricom and marking a new era of competition for cheaper and more accessible connectivity. In June, Starlink launched a 50GB data package at Sh1,300—significantly lower than Safaricom’s Sh5,000 for 47GB, though Safaricom’s package includes 2,500 talk minutes and 5,000 SMS.

In August, Starlink introduced a rental option for its hardware kit at Sh1,950 monthly, eliminating the need for the hefty Sh45,500 upfront cost. This is in addition to the Sh1,300 charge for the 50GB data plan or the Sh6,500 monthly service fee for the unlimited internet package.

As a result, local traditional internet service providers are feeling the heat, as Philip Oyier, an Information Systems Analyst at JKUAT, explains.

“Most players are comfortable with the status quo. There is quality and costing and many other things that come up in the service provision… Everyone is jittery because they think that you want to be in their space. You have a direct satellite that is orbiting up there.”

Oyier elaborates on the advantages of satellite internet in Kenya:

“The fibre is a physical cable, so there are areas where it cannot reach. For those people who are out of reach of cables, they are locked out of internet access. But with satellites, they orbit up there, so there is no worry about the laying of cables. For those staying in areas far from big towns like Nairobi, they can be serviced by satellite, and that will be better.”

Despite the excitement, one may wonder whether Starlink is worth the hype, given it is not the first satellite internet provider in Kenya. Ben Roberts, Chairperson of the ICT Sector at the Kenya Private Sector Alliance (KEPSA), offers a different perspective.

“Even with Starlink, the effect of Elon Musk himself and his popular X space platform has helped raise awareness. There’ll be other ones coming—Amazon is launching a service called Kuiper, and there’s another called OneWeb. Obviously, Amazon is very well known globally.”

For days, there have been talks about Safaricom partnering with Starlink to offer satellite internet services to its customers, but its parent company Vodafone has denied this.

NTV sat down with Safaricom’s Chief Executive Peter Ndegwa, who clarified the situation.

“There is no deal on the table yet, so I cannot comment on whether we will have a deal in the future. We would only get into a deal where it complements our investment and adds value to the experience and what it offers to our customers,” Ndegwa said.

When asked about the price comparisons that many are making to decide between the two services, he responded:

“We don’t just focus on the price. On our GSM, we have actually reduced prices by two-thirds in the last three to four years. If you focus on low prices and don’t provide a good experience, customers will run away.”

According to experts, competition is beneficial, and this is what the future of the internet looks like.

“In the US, we see rural towns where people have shifted to Starlink, but when terrestrial providers see the demand, they build networks. This is a great technology for expanding and reducing the digital divide in Kenya. It’s not a threat to existing operators; it will grow the market,” Roberts says.

In the end, it’s a win for the consumer.

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