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Home » Starlink’s Low-Cost $30 Internet Plan Heats up Competition in Kenya’s Market

Starlink’s Low-Cost $30 Internet Plan Heats up Competition in Kenya’s Market

The new Starlink Mini kit offers speeds of up to 100Mbps, aiming to attract customers seeking lower-cost, faster alternatives

Joan Aimuengheuwa by Joan Aimuengheuwa
September 26, 2024
in Telecoms
0
Starlink: Low-Cost $30 Internet Plan Sets Kenya's Market on Fire
Starlink

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Starlink has rolled out a new, more affordable internet kit in Kenya, priced at KES 27,000 ($208.38), alongside a residential plan costing $30.87 per month. 

This introduction comes just days after Safaricom, Kenya’s largest internet service provider, enhanced its fibre internet speeds to remain competitive. 

The new Starlink Mini kit offers speeds of up to 100Mbps, aiming to attract customers seeking lower-cost, faster alternatives.

In response, Safaricom has boosted its fibre packages, increasing speeds across several tiers. The 10Mbps plan was upgraded to 15Mbps, while the 20Mbps package now offers 30Mbps, both available at KES 3,000 ($23). 

Safaricom also introduced a 1Gbps plan for heavy internet users, priced at KES 20,000 ($155), to further enhance its place in Kenya’s growing internet market.

Safaricom’s goals are not limited to improving internet speeds. The company has been engaging with the Communications Authority of Kenya, urging them to enforce tougher regulations for satellite providers like Starlink. 

Safaricom argues that satellite services should operate in partnership with local mobile network operators to ensure fairness and accountability. 

United BANK

This is not limited to Kenya, but goes across Africa, as telecom companies in countries like Zimbabwe and Nigeria have also voiced their objection over Starlink’s ability to operate without the need for traditional infrastructure investments.

The entry of satellite services such as Starlink has disrupted Africa’s telecommunications sector. In Nigeria, Starlink quickly climbed to become the third-largest internet provider within two years of operation, establishing ground stations and collaborating with local operators to reach rural areas. Zimbabwean ISPs, meanwhile, have had to reduce prices or partner with other satellite providers to compete.

The competition between traditional telcos and satellite providers is set to intensify. Safaricom and others are introducing more value-driven offerings, such as bundled family plans combining mobile, SMS, and home internet services. These innovations are aimed at providing additional benefits that satellite services currently lack.

Even with the ongoings, Starlink’s ability to deliver fast and affordable internet in remote regions could widen its reach. Countries like South Africa are already in discussions with Starlink to fill gaps left by mobile operators. 

However, the long-term success of satellite providers will depend on their ability to balance regulatory requirements, infrastructure challenges, and competitive pricing. 

Meanwhile, Africa’s telecom giants are positioning themselves to adapt, boost their services, and protect their market share as Starlink and other low-orbit satellite companies make deeper inroads across the continent.

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