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Safaricom Panic as Elon Musk Internet Enters Kenyan Market

June 26, 2024
Reading Time: 5 mins read
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Twitter owner Elon Musk. PHOTO/Courtesy.

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Elon Musk’s satellite internet company Starlink has unveiled a new, cheaper data plan for the Kenyan market, posing a major challenge to the dominance of local telecom giants Safaricom and Airtel.

Under the new plan Starlink’s offering includes a 50 GB monthly data package priced at Ksh1,300, which is less than half of what Airtel charges for a similar package at Ksh3,000.

Safaricom, the market leader, on the other hand offers a 45 GB monthly package at Ksh2,500.

However, Starlink’s service comes with a higher upfront cost, as users must pay Ksh45,500 for the installation hardware to access the service.

This contrasts with the model adopted by local telcos, where users only need to activate a registered SIM card.

Starlink Disrupts Internet Market With Cheaper, Faster Plans
President William Ruto (center) poses for a photo with US Ambassador to Kenya Meg Whitman (right) and a Starlink executive after a meeting on September 16, 2023 in Los Angeles. PHOTO/Courtesy

“Affordable, high-speed internet with 50GB of data included for Sh1,300/month (opt-in for additional data at Sh20/GB),” reads a notification displayed on Starlink’s website.


Also Read: Ruto Pushes for Cheaper Internet in Meeting with Elon Musk’s Starlink


Additionally, the notification also notes that users will now be able to submit payments through mobile money options M-Pesa and Airtel Money.

Despite the higher initial cost, Starlink’s entry into the Kenyan market is expected to intensify competition and potentially drive down prices for high-speed internet services in the country.

How Starlink Works

Starlink was first introduced into the Kenyan market by Elon Musk in July 2023, making Kenya the fourth African country to receive the service after Nigeria, Rwanda, and Mozambique.

Starlink’s technology differs from traditional fiber-powered network connections, utilizing a vast network of small satellites in low earth orbit.

The satellites along with user hardware enables users worldwide to access high speed internet connections suitable for streaming, online gaming, video calls, and more

According to the company website, Starlink is designed to offer internet connections to remote parts of the planet like rural areas where connectivity is unreliable or nonexistent.

“Unbounded by traditional ground infrastructure, star link can deliver high-speed broadband internet to locations where access has been unreliable or completely unavailable,” said the company on its website.

How much Starlink Costs

To access Starlink in Kenya, users need a satellite dish and other necessary equipment, which initially cost around Ksh89,000 (excluding shipping).

Once installed the dishes automatically align with passing satellites, ensuring a continuous and stable internet connection.


Also Read: Kenyans to Enjoy Cheap Internet as Elon Musk Launches Promotion


However, in October 2023, Starlink introduced a significant price reduction of 55.6% for its installation hardware kit in the Kenyan market

Starlink offers the following three internet packages:

Starlink Standard: This package is best suited for households; its features include unlimited high speed/ low latency internet and costs Ksh6500 per month plus a one-time fee for the hardware of  Ksh45,000.

Starlink Priority: This package is best suited for businesses and high demand users and provides network priority, along with priority support, public IP and faster internet speeds.

Its cost ranges from Ksh 8,000 to Ksh 27,000 per month and has a one-time equipment fee of Ksh 377,000.

Starlink Mobile: This plan is best suited for people on the move and usually includes several features such as portability, pause service and unlimited mobile data plan.

It costs Ksh 14,000 per month and has a one-time equipment fee of Ksh 45,500.

Follow our WhatsApp Channel for real-time news updates! 

https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C 

Starlink Disrupts Internet Market With Cheaper, Faster Plans
Starlink hardware. PHOTO/Courtesy

Tags: AirtelSafaricomStarlink

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