The service is known for delivering high-speed internet to remote and underserved areas, which is a game-changer for regions where traditional infrastructure like fibre optic cables is not easily accessible.
However, its entry into Kenya has stirred up a mix of reactions, especially among local internet service providers (ISPs) and government regulators.
Safaricom, the largest technology company in East and Central Africa, has long dominated the Kenyan telecommunications market. However, the arrival of Starlink introduces a new competitor that could disrupt the status quo.
Unlike traditional ISPs, which rely on fibre optics and other terrestrial infrastructure, Starlink uses a network of low-orbit satellites to deliver internet service. This allows it to reach areas that have been difficult to connect through conventional means.
While Safaricom may feel the impact of Starlink's presence, it is the smaller ISPs and wireless internet service providers (WISPs) that are likely to be most affected.
These smaller players have thrived by providing affordable internet services in cities, towns, and communities where they are accessible and well-known.
Typically run by local entrepreneurs, these businesses buy bandwidth from larger ISPs and resell it to consumers via wireless networks.
Despite their success, they often struggle with limited resources, which affects their ability to offer consistent customer service.
The entry of Starlink poses a significant threat to these smaller ISPs and WISPs. Starlink's self-assembly model and minimal support requirements make it an attractive option for customers who want reliable and fast internet without dealing with the challenges of local providers.
As more people opt for Starlink, the market share for these smaller ISPs could shrink, putting their businesses at risk.
According to the Communications Authority of Kenya (CA), there are 375 licensed ISPs and WISPs operating in the country. These companies have been crucial in expanding internet access across Kenya, particularly in areas where larger providers have been slow to reach.
Additionally, there are 1,658 licensed telecommunications contractors who have invested in building, maintaining, and upgrading Kenya's communication networks.
The growth of Starlink could potentially disrupt this ecosystem, forcing local players to adapt or face being pushed out of the market.
Since its launch in Kenya, Starlink has seen rapid growth in its user base. Within just a few months, the number of satellite internet users through Starlink jumped from 405 to 1,354.
By March 2024, that number had grown to 4,808. Globally, Starlink has expanded even faster, with over 3 million users by mid-2024.
This rapid adoption highlights the demand for high-quality internet services in Kenya, especially in areas where traditional ISPs have struggled to provide reliable connections.
However, it also raises concerns about the long-term impact on local investments. Many of these investments have gone into developing Kenya's internet infrastructure, including submarine cables and terrestrial networks.
As Starlink continues to grow, Kenyan regulators face tough questions about how to manage this new landscape. One key issue is the Universal Services Fund, which was created to improve internet infrastructure in rural areas.
If this fund is used effectively to develop shared infrastructure, local ISPs and WISPs could be better equipped to compete with international players like Starlink.
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