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HomebusinessCheap Offers: Inside Safaricom’s Plan to Beat Starlink's Competitive Pricing Strategy

Cheap Offers: Inside Safaricom’s Plan to Beat Starlink’s Competitive Pricing Strategy

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Safaricom is taking significant steps to win back customers who have transitioned to Starlink by reducing its Internet service prices.

In a recent promotional campaign, Safaricom invited customers who switched to Starlink to reactivate their fiber accounts at a reduced rate of Ksh 4,980 for a 40 Mbps monthly package, down from the usual Ksh 6,474.

This initiative is a direct response to Starlink’s competitive pricing strategy, which has raised concerns among major Internet service providers in Kenya.

Recently, Starlink introduced a rental option in Kenya, enabling customers to rent a Starlink kit for Ksh 1,935 per month.

This rental plan is aimed at individuals who may not have the means to purchase the equipment outright.

The kit, which is generally sold for Ksh 45,150, can now be rented for Ksh 2,000 monthly, along with a one-time activation fee of Ksh 2,709.

Customers can select between a 50GB data plan for $10 or an unlimited package for Ksh 6,514, both providing speeds of up to 200 Mbps.

For those opting to buy the equipment, the standard Starlink kit is currently priced at Ksh 45,150.

As earlier reported, Safaricom is advocating for the government to prohibit SpaceX’s Starlink from operating within the country, or at the very least.

The company wants Starlink be mandated to partner with a local firm.

In a correspondence addressed to the Communications Authority of Kenya (CAK), Safaricom stated:

“Satellite coverage inherently crosses multiple territorial boundaries and, as a result, has the potential to unlawfully deliver services and cause detrimental interference within the territorial limits of the Republic of Kenya.”

The company informed the CAK that it is collaborating with AST SpaceMobile, which will serve as “an infrastructure provider” for Safaricom.

Safaricom has expressed concerns regarding the risks of interference and the absence of regulatory measures for satellite providers.

Additionally, it emphasizes the necessity for satellite operators to contribute to the nation’s Universal Service Fund, which facilitates the expansion of telecommunications services to rural and underserved communities.

Overall, Safaricom seeks to establish a ‘level playing field’ for satellite operators in comparison to terrestrial service providers.

The company perceives a threat from Starlink’s potential to circumvent local networks entirely, thereby offering direct internet access to consumers without the need for terrestrial infrastructure.

This situation could significantly undermine Safaricom’s substantial investments in network development throughout Kenya, particularly in rural areas where the company has been striving to enhance its service coverage.