Starlink halts new sign-ups in seven counties as capacity exhausted

Starlink kits on sale. The company's latest capacity constraints suggest subscriber growth is now outpacing available satellite resources serving parts of Kenya despite.

Photo credit: File | Nation Media Group

Satellite Internet firm Starlink has suspended new customer sign-ups in seven counties including Nairobi, Kiambu, Mombasa, and Machakos after surging demand exhausted available network capacity, signalling mounting pressure on its rapidly expanding connectivity service.

Others with overstretched capacity include Murang’a, Kirinyaga and Kwale counties.

Business Daily spot check on the Elon Musk-owned company's website on Tuesday showed prospective residential customers in the seven counties can no longer place orders and are instead redirected to a waiting list.

The restrictions point to growing demand for Starlink's satellite broadband less than three years after its Kenyan launch, underscoring the pace at which the provider has gained ground against traditional players.

"Starlink service is currently at capacity in your area. However, the good news is you can still place a deposit now to reserve your spot on the waitlist and receive a notification as soon as service becomes available again," reads a message displayed on purchase attempts.

"Please note that we cannot provide an estimated timeframe for service availability, but our teams are working as quickly as possible to add more capacity to the constellation so we can continue to expand coverage for more customers around the world."

Starlink launched commercial operations in Kenya in July 2023, becoming the country's first low-earth orbit satellite broadband provider and introducing direct competition to terrestrial fibre and wireless internet operators.

Since then, the company has recorded one of the fastest subscriber growth rates in Kenya's internet market, driven by aggressive price cuts and cheaper equipment financing options.

Latest data from the Communications Authority of Kenya (CA) shows Starlink had 24,999 subscriptions by the end of March this year, giving it a 0.9 percent share of Kenya's fixed internet market.

The subscriber base has more than tripled from 8,063 customers recorded in June 2024 when the company first broke into the country's list of internet service providers.

The rapid growth has come despite sustained complaints from established operators that satellite providers enjoy regulatory advantages because they do not invest heavily in terrestrial infrastructure.

Starlink's expansion has been fuelled by strong demand from households, businesses and institutions seeking faster internet speeds, particularly in locations where fibre connections remain unavailable or unreliable.

Its satellite-based model bypasses conventional fibre cables and mobile towers by connecting customers directly through orbiting satellites using rooftop receiving terminals.

The technology has proved particularly attractive in rural areas, construction sites, farms, tourism facilities and remote institutions where extending fibre infrastructure remains commercially unattractive.

Urban uptake has also accelerated as customers increasingly seek alternative providers amid growing dependence on stable internet for remote work, streaming and online businesses.

Starlink has steadily lowered entry barriers since arriving in Kenya, by slashing equipment prices and introducing lower-cost subscription packages aimed at attracting more households.

The company initially required customers to spend about Sh100,000 for installation, including Sh89,000 for the hardware kit, placing the service beyond the reach of most households.

It later cut the hardware price to Sh49,900 before introducing rental options that eliminated the need for customers to purchase the equipment outright.

Customers can now rent the installation kit for Sh1,950 monthly instead of paying the full purchase price while separately subscribing to internet service packages.

The provider also introduced a 50-gigabyte monthly package priced at Sh1,300, significantly undercutting comparable offers from traditional mobile and fixed internet operators.

The aggressive pricing strategy has intensified competition in Kenya's broadband market, forcing established providers to respond with promotional offers and revised internet packages.

The latest capacity constraints suggest subscriber growth is now outpacing available satellite resources serving parts of Kenya despite continued expansion of the global Starlink constellation.

Unlike fibre operators that expand capacity by laying additional cables, satellite providers depend on available bandwidth from orbiting satellites serving specific geographical regions.

As customer numbers rise within a particular coverage area, operators must deploy additional satellites or reallocate network resources before accepting more users.

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