Business
Safaricom To Build Its Own Subsea Cable To Counter Starlink’s Growing Competition
Currently, Safaricom relies on third parties for connections to the undersea cables.
Safaricom is planning to build its own subsea cable to compete with Elon Musk’s Starlink.
This move comes as Safaricom seeks to enhance its internet services and maintain its market lead amid growing competition.
The subsea cable will provide high-speed internet and improve connectivity, reducing reliance on third-party providers.
These cables are the backbone of the global internet, carrying the bulk of international communications, including email, webpages and video calls Safaricom is seeking more bandwidth as it expands in the fast-growing data segment in the face of slower growth from the voice business.
According to reports, Safaricom is seeking approval from the Communications Authority of Kenya (CA) to build its own undersea cable as part of its strategy to expand and improve internet connectivity in the region.
Starlink has become an enormous competitor to Safaricom in the Kenyan market. Starlink, owned by Elon Musk, uses low-earth orbit satellites to deliver high-speed internet, making it an appealing solution for areas with limited access to traditional broadband infrastructure. Its ability to reach remote and underserved regions has created a niche market.
Currently, Safaricom relies on third parties for connections to the undersea cables.
This includes privately owned SEACOM and Telkom Kenya, which operates and maintains five of the six submarine cables that have landed in the country.
The five include the East African Marine Cable (TEAMS) cable, which is owned 32 percent by Safaricom, Telkom Kenya, 23 percent and the Kenyan government, 20 percent. It links Kenya to the outside world through the United Arab Emirates.
Others are EASSy, Lion 2, DARE 1 and PEACE subsea cable systems that are under Telkom Kenya.
Safaricom’s agreement with SEACOM is set to end in June 2028.
Analysts reckon that Safaricom is racing to diversify its sources of high-speed internet and cut reliance on Telkom Kenya in its quest for more bandwidth.
Starlink, which is riding on the back of one of the world’s richest persons with a net worth of $237 billion (Sh30.6 trillion), is betting on lowering internet costs in a segment dominated by Safaricom, Jamii Telecommunications Limited (JTL) and Zuku.
It has unsettled local telecoms players, with Safaricom, Airtel Kenya and Jamii Telecom having sent protest letters to the CA. The antitrust authority—Competition Authority of Kenya (CAK)—has also been dragged in court over Starlink’s operation.
The number of Kenyans using satellite internet has increased since Starlink entered the Kenyan market in July 2023.
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