The Communications Authority of Kenya (CA) has said Safaricom was right to raise concerns about the licensing of independent satellite providers including Starlink.
“Licensees or service providers are at liberty to raise any issue in the market with the ICT regulator,” CA told TechCabal.
On July 15, Safaricom asked the regulator to block satellite ISPs with operations in other countries, a move that could lock out Starlink which is the biggest satellite internet provider in Kenya. The Elon Musk-owned company relies on resellers to distribute its kits and install the service.
CA will now investigate and address Safaricom’s concerns, even as telco experts warn that the telco’s move could reverse gains Kenya has made in increasing internet access and reducing data costs.
Safaricom also alleged security risks to the country if the companies are allowed to operate without a physical presence or partnerships with local firms. It said licensing such companies “would mean negligible control for the government to ensure accountability for any non-compliance issues.”
“The authority independently examines such issues within its mandate and regulatory framework and responds appropriately. It is a normal practice as the Authority seeks to facilitate the development of the dynamic and rapidly evolving ICT sector,” CA said.
Safaricom did not immediately respond to a request for comments.
Safaricom dominates Kenya’s data market with a 36.7% market share, followed by Jamii Telecommunications and Wananchi Group at 23.2% and 22.7% respectively. It has laid 14,000km of fiber optic cables, connecting over 400,000 subscribers.
Starlink’s expansion, which offers faster speeds and relatively lower prices, could slow Safaricom’s data business growth. In 2023, the company’s mobile money service M-Pesa and data services pushed it to the first profit in three years.
Safaricom’s data revenue rose 18% to $1.4 billion, as call revenues shrank 0.6% to $608.4 million–continuing a trend observed in recent years.
Starlink’s new satellite updates could further upset local telcos’ call and messaging services if allowed to continue operating in Kenya. The satellite ISP announced on Monday that its upgrades will now bring call services, allowing users to bypass local providers.
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