Elon Musk’s cheaper data plan jolts Safaricom, Airtel

The Starlink photo is seen on a mobile device. 

Photo credit: File | AFP

Elon Musk’s satellite internet provider Starlink has unveiled a new cheaper data plan for Kenya ushering in competition for Safaricom and Airtel, which have a big grip on the segment.

Starlink has introduced a 50 gigabyte (GB) monthly data package at a rate of Sh1,300 which is less than half the asking price for Airtel which charges Sh3,000 for a similar package.

Market leader Safaricom, on the other hand, offers a monthly package of 45GB at Sh2,500. Subscribers of Starlink will, however, have to part with Sh45,500 for an installation hardware that will unlock access to the offering, in stark contrast to the model adopted by local telcos where users only need to activate a registered SIM card.

“Affordable, high-speed internet with 50GB of data included for Sh1,300/month (opt-in for additional data at Sh20/GB),” reads a notification displayed on Starlink’s website adding that users will now be able to submit payments through mobile money options M-Pesa and Airtel Money.

The Starlink package is likely to usher in stiff competition for Safaricom and Airtel in the data segment. The latest disclosures by the Communications Authority of Kenya (CA) show that Safaricom controls the country’s mobile broadband subscriptions at 63.7 per cent market share followed by Airtel at 31.5 per cent.

Others are Telkom Kenya (1.8 per cent) while Finserve (Equitel) and Jamii Telecommunications tally at 1.5 per cent. Last July, Starlink unveiled satellite internet at rates that sat at the midpoint of what other fixed internet service providers were charging per month.

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