Following the top management meeting on Monday, Safaricom is now alleged to have cancelled the payment for STARLINK Internet via M-PESA.
In recent years, the Kenyan telecommunications landscape has witnessed a significant shift with the entry of Starlink, Elon Musk’s satellite internet venture, challenging the long-standing dominance of Safaricom. Here’s why many Kenyans are finding Safaricom’s internet less favourable and more expensive compared to Starlink:
Pricing: Safaricom’s internet packages, particularly for higher speeds, come with a hefty price tag.
For example, their Diamond package, which offers 100 Mbps, costs KSh 12,499 per month. In contrast, Starlink provides speeds up to 200 Mbps for KSh 6,500 per month, offering not just faster internet but also unlimited data at a lower cost per megabit.
Equipment Costs: While Starlink does require a significant initial investment for the satellite dish and setup, priced at KSh 49,000, the company has introduced rental options, making it more accessible.
Safaricom’s partnership with AST SpaceMobile might bring satellite internet, but the pricing structure could remain a barrier for many if it mirrors their current trends.
Speed: Starlink’s promise of high-speed internet across the globe, even in the most remote areas, is a game-changer. Safaricom, although improving, still faces challenges in providing consistent high-speed internet, especially in rural areas.
Reliability: Issues with underwater cables were the cause of recent events, such as the disruption during the anti-Finance Bill 2024 protests, which highlighted vulnerabilities in Safaricom’s network.
Starlink’s satellite-based system bypasses such terrestrial network issues, offering potentially more reliable connectivity.
Competition: Safaricom has enjoyed a near-monopolistic status in Kenya, which some argue has led to complacency in innovation and pricing.
Starlink’s entry has not only introduced competition but has also exposed Safaricom’s reluctance to adapt quickly to market demands for faster, cheaper internet.
Innovation: Starlink’s technology directly beams the internet from space, a significant leap from traditional ground-based infrastructure. This innovation appeals to tech-savvy users, as well as those in underserved areas where Safaricom’s reach or quality may be lacking.
Public Perception: Social media platforms, such as X, have seen a surge in posts favouring Starlink due to its customer service, reduced downtime, and the appeal of unlimited data.
There’s a growing sentiment that Safaricom, while having lower latency, comes with unnecessary complexities, such as multiple service providers for installation and maintenance.
Data Privacy Concerns: Some users on platforms like X have expressed distrust towards Safaricom PLC, alleging collaborations that might compromise user data privacy, although these claims remain speculative.
According to reports, Safaricom is providing NIS with confidential information, thereby distorting people’s privacy.
Regulation: It’s possible to interpret Safaricom’s push for regulatory changes, which force satellite providers like Starlink to partner with local entities, as an attempt to maintain market control. This move has sparked debates on whether it’s protecting the market or stifling competition.
Safaricom has denied the move to block Starlink payments through MPESA. However, sources report that Safaricom indeed had a meeting to discuss the matter, hence denying Starlink MPESA payments integration.
