Kenya’s Communications Authority (CA) has proposed a sharp increase in licensing fees for satellite internet service providers (ISPs), which could significantly impact Starlink’s operations.
- A 15-year license would rise tenfold, from $12,302 to $115,331.
- An annual levy of 0.4% of gross turnover would also be introduced.
Why it matters
The move could reshape Kenya’s internet landscape:
- Smaller ISPs: Higher fees could discourage new entrants and slow expansion in underserved regions.
- Local players: Companies like Safaricom might benefit from reduced competition.
- Starlink: With over 8,500 users since launching in June 2023, its rapid growth could face new hurdles.
The bigger picture
The CA’s proposal aims to tighten regulatory oversight while opening up opportunities for satellite ISPs to diversify:
- Providers could operate terrestrial cables, tracking facilities, and even engage in space research.
- Ground stations, which Starlink has struggled to establish due to past regulatory challenges, could now become viable.
What they’re saying
“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated.
The industry reaction
Safaricom, Kenya’s largest ISP, has been vocal against Starlink’s expansion. In July 2024, it called on the CA to block satellite ISPs operating across borders.
- To compete, Safaricom doubled the speed of its fiber internet packages, seeking to retain its 350,000 fixed internet users.
Zoom out
The proposed regulations could create a more level playing field for local ISPs while making it harder for global players like Starlink to disrupt the market.
For consumers in remote areas, however, this could mean fewer options for affordable, high-speed internet.
Source: CIO Africa
