Kenya’s Jamii Telecom Calls for Probe Into Starlink’s Disruptive Pricing Strategy
Kenya’s internet service provider (ISP) Jamii Telecommunications has accused Elon Musk’s Starlink of engaging in unfair competition by offering significantly low-priced data packages, which the company believes are designed to attract customers from other providers.
This accusation, filed in a protest letter to the High Court, calls for an investigation by the Communications Authority of Kenya (CA) into what Jamii claims is predatory pricing by Starlink.
Joshua Chepkwony, Jamii Telecommunications’ chairman and CEO, voiced concerns that the pricing strategy employed by Starlink could severely impact the competitive landscape of the local internet service market.
“The considerably low prices offered by Starlink, which are predatory in nature, will make it difficult for local internet service providers to compete on both price and service and ultimately kill competition by undermining the efforts of local companies,” Chepkwony stated.
He emphasized the potentially damaging effects of such pricing on Kenyan businesses, urging for regulation to curb any monopolistic tendencies in the market.
Starlink, the satellite internet service founded by Musk, entered the Kenyan market in July 2023 and has already gained a 0.5% market share. According to CA data, the launch of Starlink’s high-speed, low-latency satellite internet has led to significant growth in satellite capacity, marking a remarkable increase in the sector.
“The utilised satellite capacity increased remarkably following the launch of Starlink’s high-speed, low-latency satellite internet in the country,” CA’s third-quarter report noted.
In response to demand, Starlink recently introduced a new plan, Starlink Mini, at half the price of its standard 50GB plan, now retailing for KSh 1,300 per month.
This new package has sparked considerable interest, with some Kenyans urging Musk on social media to consider offering even more affordable deals, especially after widespread internet outages from local broadband providers.
As the sector continues to grow, the government and regulatory bodies may face mounting pressure to ensure fair competition and consumer protection.
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Kenya’s Jamii Telecom Calls for Probe Into Starlink’s Disruptive Pricing Strategy
