Starlink Triggers New Problems: Mobile Operators are at Risk!

Teknologi Terkini - Posted on 14 January 2025 Reading time 5 minutes

Illustrasi Starlink

DIGIVESTASI - Starlink, the satellite internet service launched in 2019 by Elon Musk's SpaceX, is now available in over 100 countries. However, its presence has posed significant challenges to local telecommunications companies across various regions.

 

In Kenya, since its introduction in July 2023, Starlink has disrupted the established ecosystem of internet service providers. It has gained traction by offering high-speed connectivity, extensive coverage even in remote areas, and affordable rates.

 

According to the latest data from Kenya's Communications Authority, as of June 2024, over 8,000 Kenyans had subscribed to Starlink, making it one of the top ten most popular internet service providers in the country. As a result, local telecom companies like Safaricom and Jamii have been forced to lower prices and improve their internet quality to remain competitive.

 

In rural Kenya, Safaricom is often perceived as too expensive, leading many households to switch to Starlink as their preferred provider. Abel Boreto, an investor based in Nairobi, revealed that Safaricom’s internet was unreliable during visits to his hometown, prompting him to transition to Starlink in August 2024. Boreto stated that Starlink was more economical, costing just $10 per month for 50GB of data, and it was also user-friendly.

 

“Starlink offers fast service that allows me to share the internet with my family at home while I’m away,” Boreto said, as quoted by Rest of World on Tuesday (1/14/2025).

 

The immense enthusiasm for Starlink even led to the temporary suspension of new registrations in Kenya's major cities in early November 2024, as demand surged beyond the network's capacity. To address this issue, Starlink is planning to expand its infrastructure in Nairobi and Johannesburg to accommodate more users.

 

However, Starlink's rise has also sparked global concerns about the potential for monopolization. Mohan, a computer science professor at Delft University, cautioned that dominance by a single company in internet provision could leave consumers vulnerable to price hikes, declining service quality, and controlled internet access by one entity.

 

On the other hand, local telecom companies in Kenya have expressed concerns that Starlink’s entry could erode their market share, a sector that has historically supported thousands of jobs in Africa's telecommunications industry.


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Source: cnbcindonesia.com

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