Kenya’s Communications Authority has proposed a considerable enhance in licencing charges for satellite tv for pc web service suppliers (ISPs) like Starlink. The proposed laws would increase the value of a 15-year license from $12,302 to $115,331— a tenfold enhance —and introduce an annual levy of 0.4% of gross turnover. The modifications come as Starlink has quickly expanded its presence in Kenya, pushed by a rising demand for high-speed web companies.
The transfer marks a tightening of regulatory oversight, probably elevating the price of entry, significantly for smaller firms. Whereas native ISPs could help the transfer because it raises the bar for satellite tv for pc rivals, the elevated prices might hinder the expansion of smaller web corporations and gradual the growth of high-speed web entry in underserved and distant areas. Firms like like Viasat, Indigo Telecom, and NTvsat, which cumulatively serve lower than 1,000 subscribers, could discover it troublesome to soak up the brand new charges.
“This transformation goals to make sure expertise neutrality and permit traders to land alerts utilizing any expertise,” the CA said.
Along with the license charge enhance, the CA’s proposal additionally seeks to broaden the scope of satellite tv for pc ISPs. Beneath the brand new tips, satellite tv for pc suppliers could be allowed to function terrestrial cables, telemetry programs, monitoring services, and even interact in area analysis. This might open the door for Starlink to determine floor stations in Kenya — a transfer that has been delayed beforehand attributable to regulatory challenges.
“Licensees ought to be allowed to determine satellite tv for pc programs, together with hub services, and supply satellite tv for pc companies, offered they adjust to the geographical scope precept (not less than three counties in Kenya),” CA stated.
Starlink: A rising star
Since launching in June 2023, Starlink has grown by over 1,000%, registering over 8,500 customers as of December 31, 2024. Starlink’s Kenyan growth has confronted opposition from different ISPs.
On July 15, Safaricom requested the CA to dam satellite tv for pc ISPs with operations in different international locations. Safaricom has over 350,000 fastened web customers through its intensive fibre cable community within the nation.
The telco alleged safety dangers to the nation if firms like Starlink are allowed to function with no bodily presence or partnerships with native corporations. It stated licensing satellite tv for pc ISPs “would imply negligible management for the federal government to make sure accountability for any non-compliance points.”
Nevertheless, Starlink’s low-cost, high-speed web has sparked a fierce battle for patrons. Safaricom, as an illustration, has doubled the velocity of its fibre web packages in response to Starlink’s rising presence.
Whereas in Nigeria Starlink has doubled costs, in Kenya it has resorted to promotions and cheaper packages to woe subscribers. In September 2024, as an illustration, it launched a less expensive package and a $30.87 month-to-month residential plan after Safaricom elevated its fibre web speeds.
