Starlink’s entry to the Kenyan market in July 2023 boosted satellite internet subscriber numbers more than tenfold in the nine months to Mar. 31 this year. The numbers were still relatively small, at fewer than 5,000 users in that period, but it was perhaps a warning sign for the traditional providers. The rapid uptake of Starlink has been fueled by aggressive marketing partnerships, cheaper monthly plans and a hardware rental option.
At the beginning of September, Zimbabwe became the 16th nation in Africa to get access to Starlink’s services. Starlink is required to offer its service exclusively through its local partner, IMC Communications and can only operate through approved agents, dealers, and ISPs.
But since May, when its license was approved by President Emmerson Mnangagwa, telcos and ISPs have been bracing for its launch, with TelOne, a state-owned provider, partnering with Eutelsat’s OneWeb to also offer satellite internet, while ISPs, including Liquid Home, the country’s largest fixed ISP slashed prices.
There’s long been an expectation that Low Earth Orbit (LEO) satellite internet providers like Starlink, OneWeb, and Telesat will capture market share from traditional telecom companies if priced appropriately. But it could possibly also mean a loss of tax revenue for the government as these firms operate without physical offices on the continent and provide plug-and-play connectivity.
While Safaricom’s concerns will naturally be seen as an attempt to protect its market position and revenue, industry experts note that major telcos across Africa have made substantial investments in licenses and building out infrastructure to enable mobile internet communication networks on the continent.