Safaricom has opened the door to partnerships with satellite internet operators to extend services to underserved regions. In place of heavy investment in infrastructure in the remote areas, Safaricom is leveraging satellite technology through collaborations, with the company's CEO Peter Ndegwa saying that such satellite providers as Starlink and AST, or any other player, might complement the investments Safaricom has made.
While Starlink has gained traction in Kenya since its entry in July 2023 as a subsidiary of Elon Musk's SpaceX, Safaricom remains focused on ensuring there is no duplication of investments, especially in areas with high population concentrations where its mobile and fibre infrastructure is strong. "We are not in discussions with Starlink at the moment, but we would be open to any partnership proposal in the future that will complement, and not duplicate, existing infrastructure," he said.
Safaricom apparently seems to stay away from any price war with Starlink. Yet, it does look forward to upgrading its home fiber internet by increasing speeds in its offerings without raising the prices. This indeed is a response toward some competition posed by the American firm that is backed by Musk's deep pockets and sure to shake things up in Kenya's space with lower-cost satellite internet services.
In Kenya, Starlink made Karibu Connect a reseller, while it hasn't signed any equity or ownership deals. This is pretty much what the company has done everywhere else. However, Safaricom remains skeptical of the unregulated nature of satellite services. It is calling on Kenya's Communications Authority to review licenses issued to satellite providers on the grounds that such services carry a risk of illegal connections and pose security risks.
The use of satellite internet is increasing in Kenya, with subscriptions tripling since Starlink's launch. Currently, Safaricom enjoys dominance in the fixed internet market at 37.4%, but reportedly is making strategic investments and deals to try and stay ahead of rapid-growing satellite services such as Starlink.