Telecom

Starlink Pauses New Subscriptions in Nairobi Amid Soaring Demand

Starlink Pauses New Subscriptions in Nairobi Amid Soaring Demand
Thursday, 07 November 2024 16:27

Kenya’s digital landscape is poised for continued expansion, with a focus on improving digital access across both urban and rural regions. Addressing infrastructure constraints and maintaining favorable regulatory conditions will be key to supporting this momentum.

Starlink has paused new subscriptions in Nairobi and five nearby counties due to overwhelming demand that has stretched the network's capacity. On November 4, CEO Elon Musk addressed the issue, stating that Starlink is actively working to expand internet capacity in densely populated urban areas.

The Communications Authority of Kenya reveals in its Fourth Quarter Sector Statistics Report For The Financial Year 2023/2024 that Satellite subscriptions recorded a significant growth, from 405 in June 2023 to 8,324 in June 2024, an annual growth rate of 1,955.3%. This growth is attributed to the licensing and subsequent launch of Starlink Internet Services Kenya earlier in the financial year, laying the foundation for digital services to reach even remote regions.

Starlink provides high-speed, low-latency broadband using Low Earth Orbit (LEO) satellites, offering speeds of up to 200 Mbps. Initially, Starlink offered a 100 Mbps plan at KES 6,500 ($50), while leading telco Safaricom provided the same speed in its Diamond plan at KES 12,499 ($97). However, in response to competition, Safaricom upgraded its Diamond package in September 2024, maintaining the same price but increasing the speed to 500 Mbps.

Since its launch in Kenya in July 2023, Starlink has risen to capture 0.5% of the market share with 8,063 subscribers, according to the Communications Authority. This growth was fueled by discounted kits and affordable monthly plans. To attract budget-conscious customers, Starlink introduced a KES 1,950 ($15) monthly rental plan for its hardware in August this year, which otherwise costs KES 45,000 ($349) to purchase.

This situation serves as a valuable case for broader discussions on internet infrastructure in Africa, where underserved regions often struggle with high costs and inconsistent service from traditional ISPs. Starlink's entry into the market has been a disruptive force, offering an alternative with competitive pricing and reaching areas previously underserved by terrestrial networks.

Hikmatu Bilali

On the same topic
China launches AI contest targeting African innovators and students Initiative aims to identify high-impact solutions across key...
Campus to train youth in coding, data, and artificial intelligence Backed by Axian Group, France, and the European Union Project supports Togo’s...
Government launches plans to improve data use and public services Strategy aims to support responsible use of artificial intelligence Move...
Onatel signs $5.9 million deal to expand rural 4G Project targets 92 localities, 370,000 people in 18 months Initiative aims to narrow...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
03

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
04

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
05

From eastern Chad, where measles and meningitis are spreading through overcrowded refugee camps, to ...

Weekly Health Update | Vaccination Gains Advance in Africa; Antimalarial Resistance Threatens Progress
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.