Elon Musk’s satellite internet provider Starlink has unveiled a new cheaper data plan for Kenya ushering in competition for Safaricom and Airtel, which have a big grip on the segment.
Starlink has introduced a 50 gigabyte (GB) monthly data package at a rate of Ksh1,300 ($10.16) which is less than half the asking price for Airtel which charges Ksh3,000 ($23.44) for a similar package.
Market leader Safaricom, on the other hand, offers a monthly package of 45GB at Ksh2,500 ($19.53). Subscribers of Starlink will, however, have to part with Ksh45,500 ($355.47) for an installation hardware that will unlock access to the offering, in stark contrast to the model adopted by local telcos where users only need to activate a registered SIM card.
“Affordable, high-speed internet with 50GB of data included for Ksh1,300/month (opt-in for additional data at Ksh20/GB),” reads a notification displayed on Starlink’s website adding that users will now be able to submit payments through mobile money options M-Pesa and Airtel Money.
The Starlink package is likely to usher in stiff competition for Safaricom and Airtel in the data segment. The latest disclosures by the Communications Authority of Kenya (CA) show that Safaricom controls the country’s mobile broadband subscriptions at 63.7 percent market share followed by Airtel at 31.5 percent.
Others are Telkom Kenya (1.8 percent) while Finserve (Equitel) and Jamii Telecommunications tally at 1.5 percent. Last July, Starlink unveiled satellite internet at rates that sat at the midpoint of what other fixed internet service providers were charging per month.
($1 equivalent of Ksh128 at current exchange rate)
