Kenya’s largest telecom firm, Safaricom Plc, is engaging in discussions with Elon Musk’s Starlink and other satellite companies for potential future collaborations, CEO Peter Ndegwa revealed in an interview as reported by Bloomberg.
The company aims to integrate satellite technology into its services through strategic partnerships.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in the future to make sure that that technology plays right through,” Ndegwa said during an interview in New York.
He noted that talks have already taken place, and the discussions will continue to ensure they align with Safaricom’s service offerings.
Regulatory concerns for satellite services
Despite Starlink’s success in launching satellites into low-Earth orbit for global broadband access, some governments and telecom companies have raised concerns about its regulatory compliance.
Nations like Taiwan and India have expressed worries, while countries such as Indonesia, Ghana, and Argentina have modified regulations to accommodate the service.
In Kenya, Starlink has already secured an operating license, focusing on partnerships for distribution without taking equity stakes.
According to Business Daily, the American company, backed by the world’s richest person, is betting on lowering internet costs in a segment dominated by Safaricom, Jamii Telecommunications, and Zuku.
However, Safaricom has faced legal challenges from Kituo Cha Sheria, an advocacy group, which accused the company of attempting to block Starlink.
Ndegwa firmly denied these allegations, stating, “There’s a misconception about Safaricom getting in the way. We don’t have the ability to prevent anyone from operating in Kenya. That is a regulatory decision.”
Being the largest telecommunications company in Kenya, Safaricom controlled more than 44 million mobile subscriptions out of a total 68 million subscriptions in the country in the quarter ending March 31, 2024, according to the Communications Authority of Kenya.
Safaricom wants foreign operators’ partnerships with local telcos
The context of the case moved by the NGO against Safaricom is a letter submitted by the telecom company in July to regulators, requesting that foreign satellite operators be required to form partnerships with local telecommunications firms to boost local investment and employment while adhering to Kenyan regulations.
The wireless company also expressed concerns over security and regulatory oversight due to the cross-border nature of satellite services.
Kituo Cha Sheria’s lawsuit argues that any restrictive measures imposed by Safaricom or Kenyan regulators could limit competition, preventing access to more affordable and faster internet services.
Ndegwa emphasized that Safaricom’s strength lies in its infrastructure investments, which range from $300 million to $350 million annually. “We are not worried about competition, we’ll deal with it,” Ndegwa said.
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