Elon Musk's satellite internet provider Starlink has introduced a rental plan for its expensive equipment as it seeks to expand its customer base in the Kenyan market.
In an update on Wednesday, the multinational said Kenyans can now rent the Starlink equipment at a monthly rate of Sh1,950 on top of the Sh1,300 charge for the company's 50 gigabytes (GB) data plan or the Sh6,500 monthly service charge for its unlimited internet package.
Without the rental option, a user would have been forced to purchase the hardware kit at a standard price of Sh45,500 to enjoy the service, after the company last week ended its month-long offer that saw the cost of acquiring the equipment hit a low of Sh29,999.
"Starlink now offers Starlink kit rentals throughout Kenya," the multinational said on its website.
The purchase price of the equipment has kept the product out of reach of many target users, with the rental option expected to boost uptake for occasional use, including travel to remote areas.
The rental option means that a customer opting for the 50GB plan will part with Sh5,950, including a one-off activation fee of Sh2,700, which translates into a monthly payment of Sh3,250 in subsequent months.
In comparison, a spot check shows that Kenya's leading telco Safaricom sells a 47GB data plan including 2,500 talk minutes and 5,000 SMS for Sh5,000, while Airtel charges Sh3,000 for the 50GB package.
Musk's internet company promises download speeds of up to 250Mbps and upload speeds of up to 35Mbps.
Starlink first arrived in Kenya in July last year, setting the stage for increased competition from local players including Safaricom, Jamii Telecommunication Limited (JTL) and Wananchi Group-owned Zuku.
The hardware kit at the time cost Sh89,000, which was the bulk of the installation cost.
Starlink technology supports services not possible with traditional terrestrial solutions, allowing unmodified smartphones to connect to satellites in areas with coverage gaps.
Its key strength is its ability to deliver high-speed, low-latency internet, making it ideal for rural or remote areas where traditional internet services are limited or unreliable.
In the first three months of this year, the number of satellite internet subscribers in Kenya grew by 64 percent to 4,808 at the end of March, up from 2,933 in December, according to the Communications Authority of Kenya (CA), signalling increased competition for alternative local providers.
Other satellite internet service providers in the country include Vizocom, Telkom's Skynet, NTvsat and Globaltt. Safaricom has also announced plans to enter the business.
