Panicked Safaricom Increases Internet Speeds Amid Starlink’s Rising Demand

Safaricom is intensifying its efforts to maintain its market dominance in the data segment against the rising competition from Starlink with its enhanced last-mile internet speeds, now reaching up to 400 megabytes per second (Mbps).

This is as the telco introduced a new Platinum Package with 1000 Mbps at Sh20,000 per month.

The entry of Starlink into the local market has been a game-changer with new standards for internet speeds in Kenya, rapidly gaining popularity among Kenyans and county governments.

This development poses a significant challenge to Safaricom, the country’s leading telco, which has long held a near-monopoly in internet services. As the competition heats up, industry experts anticipate a pricing war, with internet service providers vying to retain customers by offering faster, more affordable internet options.

In response to Starlink’s growing presence, Safaricom has rolled out improved packages meant to deliver better value and service quality, reinforcing Safaricom’s position in the market. The revamped packages include the Bronze Package, now upgraded from 10 Mbps to 15 Mbps at Sh2,999, and the Silver Package, which has increased from 20 Mbps to 30 Mbps, priced at Sh4,100.

The Gold Package has doubled its speed, going from 40 Mbps to 80 Mbps at Sh6,299, while the Diamond Package has made a significant leap from 100 Mbps to 500 Mbps, now costing Sh12,499.

Growing demand

Safaricom Chief Executive, Peter Ndegwa, said these changes are in response to growing demand and usage, aiming to provide more reliable connectivity and value for customers. “The introduction of the new speeds offers the capability of handling the most demanding online activities with ease, including high-definition streaming 4K/8K, gaming, large file transfers, cloud computing, and virtual reality,” he explained.  Ndegwa also showcased a new family share option that integrates internet and mobile solutions, allowing up to five family members to share the service.

The introduction of Starlink has intensified competition in Kenya’s ISP sector, offering speeds exceeding 150 Mbps at competitive rates. Since its July 2023 launch, Starlink has attracted numerous users through reduced hardware costs and rental options, especially in underserved regions.

Local operators

Safaricom has raised concerns with the Communications Authority of Kenya (CA) about the regulatory environment for satellite internet providers. It argues that satellite providers like Starlink should be required to partner with local operators to ensure proper oversight and accountability.  In a leaked memo, Safaricom warned that allowing independent satellite companies to operate without local regulation could lead to compliance and accountability challenges.

This regulatory plea comes amid increasing dissatisfaction with Safaricom’s service quality. Nairobi and Murang’a County have already adopted Starlink, signalling a growing preference for satellite internet solutions.