Tesla billionaire Elon Musk’s satellite internet firm Starlink has intensified its efforts to net more users in the Kenyan market with the second price slash in three months as it angles for a pie of the country’s internet subscriber base currently dominated by Safaricom.
In the new offering set to last until mid-August, Starlink has lowered the cost of obtaining the hardware equipment to Sh29,999 down from the normal Sh45,000 asking price.
At the time of the launch of Kenyan operations in July last year, the Starlink kits were retailing at Sh89,000 with a Business Daily analysis showing that the pricing was the second highest across the six African markets that the firm had established a presence at the time.
Last June, as part of the wider strategy to gain further traction, the internet provider unveiled a new cheaper data plan for the Kenyan market after it introduced a 50 gigabyte (GB) monthly package at a rate of Sh1,300 ushering in competition for Safaricom and Airtel which have a big grip on the data segment.
Upon its launch in the local market, many users flagged the installation cost terming it unaffordable as it was almost a ten-fold increase from what rival products cost.
At the time, a subscriber in Kenya would be required to cough not less than Sh100,000 with the purchase of the hardware kit taking up the lion’s share of the cost at Sh89,000.
After installation of the equipment, the user is required to pay an activation fee of Sh6,500, which is also the monthly subscription charge. Starlink technology supports services that are not possible with traditional terrestrial solutions, allowing unmodified smartphones to connect to satellites in areas with coverage gaps.
Its major strength is in its ability to deliver high-speed internet with low latency, making it ideal for rural or remote areas where traditional internet services are limited or unreliable.
During the first three months of this year, the uptake of satellite internet in Kenya grew 64 percent to hit 4,808 as at the close of March up from 2,933 in December, according to data from the Communications Authority of Kenya, signalling heightened competition for alternate local vendors.
Other satellite internet service providers in the country include Vizocom, Telkom’s Skynet, NTvsat, and Globaltt, among others. Safaricom has also spelled out plans to venture into the business.
