In an interview with Bloomberg, Kenya’s biggest telecom company, Safaricom Plc revealed that it is in talks about future collaborations with Elon Musk’s Starlink, as well as other satellite firms.
Strategic partnerships will help the company integrate satellite technologies into its service offerings.
Ndegwa stated in an interview with a New York-based satellite provider that “from a satellite standpoint, we must partner in the future with Starlink and other satellite providers to ensure that this technology is fully implemented.”
Safaricom will be able to align its service offering with the talks that have taken place.
Satellite services: regulatory concerns
Starlink has been successful in its efforts to launch satellites into a low Earth orbit (LEO) for broadband global access. However, certain governments and telecoms have expressed concerns over the regulatory compliance of Starlink.
Several countries, including Taiwan, India, Ghana and Argentina, have modified their regulations in order to provide the service.
Starlink Kenya has already obtained an operating licence. It focuses on distribution partnerships without equity stakes.
Business Daily reports that the American firm, which is backed by one of the richest people in the world, bets on lower internet prices for a market segment dominated by Safaricom Telecommunications and Zuku.
Kituo Cha Sheria is an advocacy group that has sued Safaricom for allegedly trying to stop Starlink.
Ndegwa denied the allegations and said, “There is a misperception that Safaricom interferes with things. No one can stop us from working in Kenya. This is a decision made by the regulatory authority.”
According to the Communications Authority of Kenya, Safaricom, the biggest telecommunications provider in Kenya, controlled over 44 million mobile subscribers out of the total of 68 millions subscriptions across the country during the quarter that ended March 31, 2024.
Safaricom is looking for partnerships between local operators and foreign operators
In the context of this case, the NGO is challenging Safaricom for a July letter it sent to Kenyan regulators requesting foreign satellite companies to create partnerships with Kenyan telecommunications businesses to increase local employment and investment while complying with Kenyan regulation.
Satellite services are offered across borders, which raises concerns about security and oversight.
Kituo Cha Sheria claims that Safaricom and Kenyan regulators may have taken restrictive measures to limit competition. This could prevent access to faster, more affordable internet services.
Ndegwa said that Safaricom is strong because of its infrastructure investment, which varies between $300 and $350 millions annually. Ndegwa stated that “we are not concerned about the competition. We’ll handle it.”
As new information becomes available, this post Kenya Safaricom talks to Starlink about a satellite service partnership could be updated.
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