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Starlink Cuts Prices, Increasing Competition In Kenya

Starlink Cuts Prices, Increasing Competition In Kenya
Starlink Cuts Prices, Increasing Competition with Safaricom and   Airtel

Elon Musk’s satellite internet company, Starlink, is ramping up efforts to capture a larger share of Kenya’s internet market. The market is currently led by Safaricom. For the second time in three months, Starlink has reduced its prices in an attempt to attract more users.

In a promotion, Starlink has dropped the cost of its hardware equipment to KSh 29,999, down from the usual KSh 45,000. This is running until mid-August. When Starlink launched its services in Kenya in July last year, the kits were priced at KSh 89,000. An analysis at that time showed this was the second-highest price among the six African markets where Starlink was active.

In June, Starlink introduced a cheaper data plan, offering a 50 GB monthly package for KSh 1,300. This move intensified competition with Safaricom and Airtel, which dominate the data segment in Kenya. Initially, many potential users found the installation cost prohibitive, as it was nearly ten times higher than that of rival products.

Initially, Starlink subscribers in Kenya had to pay at least KSh 100,000, with the hardware kit alone costing KSh 89,000. After setting up the equipment, users had to pay an activation fee of KSh 6,500, which also covered the monthly subscription.

Starlink technology supports services like enabling unmodified smartphones to connect to satellites in areas with coverage gaps. Its ability to deliver high-speed internet with low latency is an advantage. This is making it ideal for rural areas where traditional internet services are unreliable.

Early this year, the uptake of satellite internet in Kenya grew by 64%, reaching 4,808 users by the end of March, up from 2,933 in December. This data from the Communications Authority of Kenya indicates increasing competition among local internet service providers. Other satellite internet providers in Kenya include Vizocom, Telkom’s Skynet, NTvsat, and Globaltt. Additionally, Safaricom has announced plans to enter the satellite internet business.

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