Amazon Challenges Starlink in Kenya's Satellite Internet Market as Bezos Takes on Musk
US tech giant Amazon has made its first move into Kenya's rapidly expanding internet sector by submitting an application for a license to offer satellite internet services. This move is part of an escalating rivalry between the world's two wealthiest individuals - Jeff Bezos and Elon Musk.
Amazon Sets Up Shop in Kenya
The Amazon owner, Jeff Bezos, has registered a Nairobi-based subsidiary called Amazon Kuiper Kenya Limited. This company is gunning for a network facilities provider licence from the Communications Authority of Kenya (CA) so it can break into the local market.
Amazon Kuiper Kenya is part of a much bigger project called Amazon Leo - a satellite broadband network that will compete head on with Elon Musk's Starlink. Leo is a low-earth orbit (LEO) network thats been set up specifically to take on Starlink - which currently holds a massive lead in this space.
Amazon's Going for a Tier 2 Licence
According to CA paperwork, Amazon is after a Tier 2 licence. This is the sort of licence the Communications Authority of Kenya grants to companies which plan to roll out communication infrastructure across the entire country - regardless of the technology they use.
In a Kenya Gazette notice, the regulator spelled out what the licence entails. It basically says that if Amazon is granted a licence, it'll be able to offer its services. This could have some implications for the public, local authorities, and companies in the country.
Kenya First Stop for Amazon in Africa
Kenya is one of the first stops on Amazon's big Africa adventure. In January, the company managed to get a licence to roll out satellite broadband in Nigeria. Amazon Leo has plans to launch over 3,200 satellites by 2028 - and offer a direct-to-device service. This would mean that people won't need to rely on traditional mobile phone networks to get online. Starlink is doing something similar, having signed a deal with Airtel pending approval from the CA.
Bezos Is Playing Catch-Up to Musk
Jeff Bezos - the worlds fourth richest person, with a fortune of $224 billion - is entering the satellite internet game rather late in the day. And to make things more complicated, he's doing it as a bit of an underdog - since Elon Musk's Starlink already has a commanding lead in the market. However, despite this, Amazon is still committed to closing the gap with Starlink.
Strategic Partnerships & Speed Advantages
To try and get up to speed, Amazon is planning on selling satellite 'dish' antennas in Kenya and teaming up with traditional telcos to integrate its satellite technology. This will help expand coverage in rural areas. It's also signed a partnership deal with UK-based Vodafone - the parent company of Kenya's largest telco, Safaricom - to connect its Leo service to 4G and 5G masts in remote areas across Africa. Trials are set to start later this year.
To stay ahead of Starlink, which was first to market, Amazon is promising speeds that are at least twice as fast - with a maximum download speed of 400 megabits per second for standard terminals. For commercial kits, it claims it will deliver a 1,280 megabit download rate. But pricing details are still up in the air.
