Safaricom, Kenya’s leading telecommunications company, has raised concerns about the potential risks and harm to the Kenyan telecommunications landscape with the granting of independent licences to satellite service providers. In a recent letter to the Communication Authority of Kenya (CA), Safaricom proposed an alternative approach where satellite service providers would only be permitted to operate in Kenya through partnerships with existing local licensees. This model would allow satellite companies to function as infrastructure providers to licensed operators, fostering innovation while mitigating potential negative impacts.
To support its claims and illustrate its commitment to innovation, Safaricom discussed its partnership with Avellan Space Technology and Science (AST) for a space mobile solution. AST serves as an infrastructure provider to Safaricom for this service, which aims to explore the technology’s potential within the existing regulatory framework. This Direct-to-Device model enables direct radio access service from space stations to end-user terminals on Earth, showcasing Safaricom’s dedication to technological advancements and compliance with local laws and regulations.
The news of Starlink’s kit rental option launch in the Kenyan market has been met with enthusiasm from customers, who see it as a disruptive technology and enabler of internet services. This move by Starlink has sparked a broader trend across Africa, with local telecommunications companies positioning themselves to maintain their competitive edge in the face of potential disruption from new satellite internet providers.
In Nigeria and Cameroon, local telecommunication companies have expressed concerns about the threat that Starlink poses to their operations. The potential arrival of Starlink’s Low Earth Orbit (LEO) satellite internet service has raised fears of competition and market share loss among established providers. Similarly, ISPs in Nigeria have voiced concerns about the impact of Starlink on their existing infrastructure investments and growth potential.
In response to the entry of Starlink into African markets, mobile network operators across the continent are taking action to compete effectively with upcoming ISPs. Zimbabwe’s state-owned TelOne, for example, has partnered with Eutelsat OneWeb to offer high-speed, low-latency internet services in anticipation of Starlink’s launch. This strategic move reflects the shifting landscape of satellite internet services in Africa and the need for local telcos to adapt their business strategies to remain relevant.
Despite the challenges posed by Starlink’s entry into the African market, some local operators like Liquid Intelligent Technologies in Zimbabwe maintain a confident stance and view the competition as an opportunity for growth and innovation. By responding to local economic factors and market dynamics, these operators demonstrate their resilience and commitment to serving their customers amidst changing industry landscapes.
As Starlink faces regulatory hurdles in its quest for expansion across Africa, local telcos and governments are taking steps to protect their local telecommunications landscape. Concerns about national security and information control have led several African nations to raise objections to Starlink’s operations, citing potential threats to state control and revenue loss for local telecom companies.
In conclusion, the rapid expansion of Starlink and its disruptive technology present both challenges and opportunities for local telecommunications companies in Africa. By adapting, innovating, and potentially partnering with providers like Starlink, telcos can leverage new technologies to improve connectivity and expand their reach to underserved areas. Collaboration between traditional operators and emerging satellite providers could pave the way for a more inclusive and competitive telecommunications landscape in Africa.