Bridging Kenya’s Digital Divide: Achieving Universal Internet Access by 2030 with Safaricom and Starlink

How can Kenya achieve its ambitious goal of universal internet access by 2030, leveraging both local providers like Safaricom and global satellite services like Starlink, while addressing regulatory, infrastructural, and competitive challenges?

Despite Kenya’s ambitious goals for internet connectivity and significant progress, a substantial portion of the population, particularly in rural areas, remains without internet access. The current internet penetration stands at 32.7%, leaving around 67.3% of the population unconnected. The government’s plan to provide internet access to 8.4 million homes by 2027 highlights the urgent need for more internet providers to bridge this digital divide. However, regulatory challenges and resistance from established providers like Safaricom towards new entrants such as Starlink pose significant obstacles. Safaricom’s request to limit independent satellite service providers raises concerns about competition and innovation in the market. Addressing these challenges is crucial to achieving universal internet access and realizing Kenya’s vision of becoming a globally competitive and prosperous nation by 2030.

Kenya’s Vision for Internet Access

Kenya aims to transform into a globally competitive and prosperous nation by 2030, with internet connectivity as a central pillar. The National Broadband Strategy (2018-2023) focuses on leveraging broadband to create a knowledge-based society. The global vision emphasizes universal internet access as a fundamental right, aiming to bridge the digital divide and ensure that everyone can benefit from the digital economy.

Concerns from Twitter Space

Recently, concerns have been raised on Twitter(X) about Safaricom’s stance towards Starlink. This echoes the early days of M-Pesa, where banks were furious about a communication company venturing into the financial sector. They lobbied and met with the acting finance minister, Hon. Francis Michuki, and CBK Governor Njuguna Ndungu, to stop M-Pesa. However, their appeals were disregarded, allowing M-Pesa to continue operating.

Safaricom’s Current Stance

Safaricom has formally requested the Communications Authority of Kenya (CA) to reconsider its approach to licensing independent satellite service providers, such as Starlink. In a letter, Safaricom suggested that satellite providers should only operate in Kenya through agreements with existing local licensees. This proposal aims to ensure that these providers act as infrastructure partners rather than independent operators. The move raises questions about the necessity and implications of requiring Starlink to partner with local players to establish its services in Kenya.

The Internet as a Necessity

The Internet is no longer a luxury but a necessity. Many camps, lodges, small towns, and schools in Kenya struggle with connectivity. Safaricom, which benefited from the free market, is now seeking favors that don’t exist in law. Instead of placing obstacles in Starlink’s path, Safaricom should consider partnering with them to improve connectivity across Kenya.

Lessons from M-Pesa

When M-Pesa was launched by Safaricom in March 2007, it faced significant resistance from traditional banks. Despite this, the Kenyan government supported its launch, and M-Pesa quickly gained popularity. Today, M-Pesa is a cornerstone of Safaricom’s business, increasing financial inclusion and providing a reliable means of money transfer for millions.

Starlink has its share of challenges in entering the Kenyan market.

Regulatory Challenges in Satellite Communication in Kenya

Spectrum Allocation: In Kenya, securing spectrum for satellite communication is managed by the Communications Authority of Kenya (CA). The CA’s guidelines ensure efficient spectrum use, but the increasing demand for spectrum, especially with the advent of 5G, makes it challenging to allocate sufficient bandwidth for satellite services.

1. Space Debris Concerns: The deployment of numerous satellites, including those by companies like Starlink, raises concerns about space debris. Kenya, through forums like the Space Generation Advisory Council, is actively discussing space sustainability and innovative ways to manage space debris.
2. Local Ownership Requirements: Kenya mandates that foreign companies must have at least 30% local ownership to operate. This requirement aims to ensure local participation and benefits from foreign investments.
3. Interference with Existing Services: There are concerns about Starlink’s satellites potentially interfering with existing communication services. Safaricom, a major telecom provider, has raised issues about uncoordinated satellite operations affecting mobile network quality.
4. Environmental and Safety Regulations: Compliance with environmental and safety standards is crucial. Kenya’s regulatory framework, including the Kenya Information and Communications Act, mandates strict adherence to these standards to ensure safe and sustainable satellite operations.
5. Political and Economic Factors: Geopolitical tensions and economic policies can impact regulatory approvals for satellite operations. Kenya’s political stability and economic policies play a significant role in attracting and regulating foreign investments in the satellite communication sector.

Beyond Kenya, Starlink has encountered significant legal challenges. Dish Network and Viasat filed lawsuits against the FCC’s decision to permit SpaceX to operate Starlink satellites at lower orbits, but a U.S. appeals court upheld the FCC’s decision. Additionally, rivals such as Amazon’s Kuiper Systems, OneWeb, and Viasat have expressed concerns about Starlink’s plans to deploy a second-generation network of approximately 30,000 satellites.

Achieving anything worthwhile requires effort, and it’s crucial to delve deeper to truly understand Starlink

Starlink

• Overview: Developed by SpaceX, Starlink is a satellite internet constellation designed to provide high-speed internet access, especially in remote and underserved areas.
• Satellite Constellation: Operates in low Earth orbit (LEO), reducing latency compared to traditional geostationary satellites.
• User Equipment: Includes a phased-array antenna, Wi-Fi router, power supply, cables, and a mounting tripod.
• Service Plans: Supports activities like streaming, video calls, online gaming, and remote work.

Competitive Edge for Starlink

1. Accessibility: Starlink provides internet access in remote and underserved areas, enabling people in rural locations to connect to high-speed internet.
2. Global Coverage: Starlink offers coverage almost anywhere on the planet, thanks to its constellation of low-Earth orbit (LEO) satellites.
3. Flexibility: There are no long-term contracts, and the service is portable, allowing users to take their internet connection to various locations.
4. Cost Considerations: Starlink has a one-time equipment fee of approximately $599 and a monthly service fee of $110. This pricing is competitive compared to other satellite internet providers.
5. Reliability: Starlink provides consistent service with low latency, typically around 20-40 milliseconds, which is significantly lower than traditional satellite internet.
6. Innovation and Future Potential: Continuous improvements are being made, with potential for lower costs and higher speeds as more satellites are deployed.

Comparison of Safaricom and Starlink Models

What advantages can we gain from both Safaricom and Starlink? Let’s begin by examining their monthly internet bundle packages for users.

Safaricom offers significantly cheaper packages compared to Starlink. For example, Safaricom’s 100 GB package costs KSh 10,000, while Starlink’s 50 GB package costs KSh 7,200. Even with unlimited data, Starlink’s lowest package is KSh 17,280, which is higher than Safaricom’s highest package. The distinction lies in business and additional benefits.

Business and Other Benefits

Safaricom:

• 5G for Business: Offers high-speed and reliable internet connectivity on a fast 5G network.
• Business Hub: Provides tools for purchasing, tracking orders, managing services, support, and billing online.
• Corporate Post-Pay Plan: Offers value with secure fibre connectivity and 4G internet routers.
• M-Pesa Integration: Facilitates business transactions and growth through M-Pesa Till services.

Starlink:

• High-Speed Internet: Provides reliable high-speed internet, especially in remote areas.
• Scalability: Can scale to meet the needs of both small startups and large corporations.
• Priority Data: Offers prioritized bandwidth and 24/7 support for business continuity.
• Global Connectivity: Ideal for businesses needing connectivity across multiple locations, including maritime and aviation.

Safaricom is cost-effective for general business needs, while Starlink provides superior connectivity and scalability for businesses in remote or multiple locations.

Conclusion

?It is evident that these are complementary services that will significantly contribute to the realization of Kenya’s vision for internet access. Rather than viewing Starlink as a competitor, Safaricom could explore a partnership to enhance connectivity across Kenya. Just as M-Pesa revolutionized financial services, Starlink has the potential to transform internet connectivity, particularly in underserved areas. By collaborating, both companies can expand their reach and impact, ensuring broader access to reliable internet services.