The telecommunications sector in Kenya is facing a new challenge with the entry of satellite providers such as Starlink, owned by billionaire Elon Musk. This has prompted local mobile operators to call for a new framework for managing the emerging competitive environment. While some may dismiss these concerns as the rantings of vested interests, the reality is that regulators and policymakers across Africa are grappling with the threat satellite providers pose to traditional telcos and the potential negative consequences to their economies.
Several African markets, including Cameroon, Ivory Coast, Senegal, and the DRC, have classified Starlink as ‚illegal‘ within their territories. South Africa’s Independent Communications Authority (Icasa) has also raised concerns about Starlink operating without a license and not meeting local shareholding requirements. In response, Icasa has proposed changes to the legal framework to accommodate satellite service providers and has invited stakeholders to submit ideas and proposals.
The question arises as to why the entry of satellite providers into the telecommunications sector is not being treated as a significant policy and regulatory issue in Kenya. There is a need for a public conversation on how to address this challenge. Should satellite providers be licensed as independent players or required to partner with local licensees as infrastructure providers? One suggestion is to grant satellite service providers infrastructure provider licenses only, which would require a debate on the pros and cons of such a decision.
Granting licenses to satellite operators as independent players raises concerns about compliance with government regulations, security implications, and the ability to export voice and data directly via satellite to other countries. The recent events in Ukraine and Sudan highlight the importance of considering the security implications of satellite networks operating across borders.
The co-existence of satellite operators and mobile operators in the same space presents challenges for regulators in addressing network interference and responding to complaints from both sides. The lack of public discussion on the implications of Starlink’s entry into the market on the profitability of traditional telcos underscores the need for a clear strategy from the sector regulator on the evolution and growth of the telecommunications sector in the medium term.
Policy guidance is essential to ensure a competitive telecommunications sector with multiple profitable players, competitive prices for consumers, and consumer protection measures. The debate on the impact of independent satellite players on the telecommunications sector is crucial for shaping the future of the industry in Kenya and beyond.