Starlink is Pretty Serious About Dominating Kenya's Internet Market

Starlink made headlines in April when it announced a 56% reduction in installation costs for its internet kits in Kenya. This price cut brought the cost down to Ksh 29,999. This reportedly resulted in a surge of purchases from Kenyans seeking reliable internet, particularly in underserved areas.

Building on this success, Starlink has now further reduced the price of its Gen-2 hardware kits to Ksh 29,999, effective until August 14. The kits are readily available through popular retail channels such as Jumia Group's Online store and Naivas Supermarkets.

Starlink has also introduced a new data plan priced at Ksh 1,300 per month. This plan is the most affordable option compared to local telco offerings which average from Ksh 1,500, making it accessible to a wider segment of the population. While some consumers are advocating for even lower prices, the new pricing is expected to drive uptake if reflected at Jumia and Naivas.

In addition to the high-speed internet with low latency, Starlink's advantage with their network of satellites allows them to provide connectivity in regions that traditional providers may overlook, thus expanding access to reliable internet. This makes it an attractive option for users in rural and underserved areas where conventional services are often lacking.

Starlink's price strategy will challenge established players like Faiba, Safaricom, Telkom and Airtel, who dominate Kenya's market with their terrestrial solutions. As they strive to rethink their strategy and offerings to maintain dominance in the market, the results are highly expected to motivate efforts towards more innovation and improved service delivery across the sector. A plus for consumers; more choices and better connectivity options.

But Starlink is yet to prove their value to consumers

In as much as these intermittent price cuts woo internet users into getting a Starlink kit, the issue of product-market fit is still a key factor. There are other reliable, cost-effective internet providers in Kenya and have already established trust and dominance.

Additionally, traditional internet providers are continuously enhancing their infrastructure - and doing so in the green way. Take Safaricom for example, they recently announced an Expression Of Interest For Hydrogen Fuel Cell Solution. A cleaner way of boosting their 5G band coverage.

Satellite internet services will need to go the extra kilometer to innovate and adapt to remain relevant and acceptable to the Kenyan consumer.

The requirement for specific user equipment, such as satellite dishes and routers, adds another layer of complexity and cost for potential customers. Despite these challenges, the potential for satellite internet to provide reliable connectivity in underserved regions remains key, and addressing these hurdles will be crucial for satellite providers to enhance their services and effectively compete in the internet ISP market.