The Communications Authority of Kenya has proposed a significant increase in licensing fees for satellite internet service providers such as Starlink. The proposed regulations would raise the cost of a 15-year license from $12,302 to $115,331, along with introducing an annual levy of 0.4% of gross turnover. This move aims to ensure technology neutrality and allow investors to utilize any technology for signal reception.
The increase in licensing fees could potentially pose challenges for smaller companies looking to enter the market, hindering the growth of smaller internet firms and slowing down the expansion of high-speed internet access in remote areas. The proposed changes also seek to expand the scope of satellite ISPs, allowing them to operate terrestrial cables, tracking facilities, and engage in space research.
Starlink, a prominent player in the field, has experienced significant growth in Kenya, registering over 8,500 users since its launch. This expansion has sparked competition and responses from other ISPs like Safaricom, who have raised concerns about security risks and licensing for satellite ISPs. In response to Starlink’s presence, Safaricom has doubled the speed of its fiber internet packages.
Despite facing opposition in some regions, Starlink has adapted its strategies by offering promotions and cheaper packages to attract subscribers in Kenya. This includes introducing a more affordable kit and a budget-friendly monthly residential plan.