Safaricom CEO Peter Ndegwa Addresses Potential Partnership with Starlink Amid Stiff Competition
As Kenya’s telecommunications landscape evolves rapidly, Safaricom is exploring new strategies to stay ahead of the curve. The company’s CEO, Peter Ndegwa, recently revealed that Safaricom is in talks with Elon Musk’s satellite internet company, Starlink, to enhance internet connectivity in the country.
With the increasing demand for fast and reliable internet, especially in rural areas, Ndegwa sees satellite technology as a complementary solution to the existing infrastructure.
In an interview with Bloomberg, Ndegwa confirmed that discussions with Starlink have already taken place. The proposed collaboration could be a game-changer for internet access, especially in remote regions where traditional fibre-based technology has limited reach.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in the future to make sure that that technology plays right through,” Ndegwa stated. “We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering.”
Kenya, with its vast rural areas and diverse topography, poses significant challenges for telecommunications companies attempting to roll out high-speed internet across the country.
Satellite technology, such as that provided by Starlink, is seen as a viable alternative to bridge this gap, offering services where fibre-optic networks cannot reach. Ndegwa emphasized the need to leverage this technology to improve connectivity for underserved areas, explaining that satellite services could have a profound impact on these communities.
“What we’re telling the regulator is that satellite is used in places not covered today because it will benefit the country rather than competing in urban areas,” Ndegwa added, clarifying Safaricom’s stance on competition.
While Starlink’s entrance into the Kenyan market has raised concerns about increased rivalry in urban areas, Ndegwa appeared unperturbed, stating, “We’re not worried about competition; we will deal with it.”
The timing of these discussions is noteworthy, as Safaricom faces growing competition from other telecommunications companies and new players like Starlink.
The company recently wrote to the Communications Authority of Kenya (CA) to express concerns about the impact of Starlink’s market entry. However, Ndegwa stressed that collaboration, rather than rivalry, is the way forward, especially when considering the potential benefits for Kenya’s rural population.
Safaricom’s strategy of pursuing partnerships with satellite providers underscores its broader vision of becoming a key player in the digital economy, ensuring that even the most remote areas of the country are not left behind.
The proposed collaboration with Starlink could provide much-needed solutions to the connectivity challenges in Kenya, particularly as the demand for online services continues to rise.
While the full details of a potential partnership between Safaricom and Starlink are yet to be finalized, it is clear that Safaricom is committed to expanding its reach through innovative means. As Ndegwa pointed out, “We will continue to have those discussions to the extent that they complement what we are offering.”
Safaricom CEO Peter Ndegwa Addresses Potential Partnership with Starlink Amid Stiff Competition