Billionaire Elon Musk’s satellite internet firm, Starlink, has announced a 55.6 percent reduction in the price of the installation hardware kit in the Kenyan market in a promotion that runs until May 15.
During the offer window, Kenyans will purchase the hardware equipment at Sh39,500, down from the Sh89,000 asking price during normal sales.
“SpaceX’s Starlink has an offer that applies to all of Kenya for a limited time—over 55 percent off your Starlink kit (now Sh39,500, was Sh89,000),” reads a promotional message displayed on the firm’s website.
An analysis last October revealed that Kenya and Mozambique are the top-most charged markets for the installation of the Internet compared to the other four African countries where the technology had established a presence at the time.
At the time, Starlink was operating in Kenya, Nigeria, Rwanda, Zambia, Malawi, and Mozambique, with a spot check showing there existed a difference of up to Sh36,067 between the highest-paying country (Mozambique) and the one with the lowest installation fee (Nigeria), representing a 38.2 percent gap.
The firm would later effect rapid expansion into more African countries as it sought to stamp its footprint and tap the vast potential in emerging economies.
Starlink however appears to be off to a bumpy start in African markets after it emerged that it has halted operations in at least four countries that it recently ventured into.
A BBC report last week revealed that the company has disabled services in Zimbabwe, the Democratic Republic of Congo (DRC), Botswana, and most recently in South Africa, all on account of the lack of operating licences and other regulatory approvals.
Starlink first came to Kenya in July last year in a development that set the stage for intensified competition with local players such as Safaricom, Jamii Telecommunications Limited (JTL), and Wananchi Group-owned Zuku.
At the time, the firm which is an outgrowth of Musk’s space technology company SpaceX, appointed local internet firm Karibu Connect as its first authorised reseller in the country.
In October, the company appointed e-commerce platform Jumia Technologies as its first distributor of satellite terminals and connectivity kits in Africa, with the latter using Kenya and Nigeria as the launch pad before rolling out the distributorship to the rest of the continent.
Unlike the legacy fiber-powered network connections, the Starlink technology consists of a vast network of small satellites in low earth orbit, flying at altitudes between 340 and 1,200 kilometres.
Users on the ground access the Internet via phased-array user terminals, commonly known as dishes which automatically align themselves with the passing satellites thus allowing for a continuous and stable Internet connection.
The technology supports services that are not possible with traditional terrestrial solutions, allowing unmodified smartphones to connect to satellites in areas with coverage gaps.
Starlink’s major strength is its ability to deliver high-speed internet with low latency, making it ideal for rural or remote areas where traditional internet services are limited or unreliable.
The service has however proved unaffordable for many of the targeted users owing to its off-putting installation cost which is an almost ten-fold increase from what rival products cost.
In the absence of the current offer, a subscriber in Kenya would be required to cough not less than Sh100,000 with the purchase of the hardware kit taking up the lion’s share of the cost at Sh89,000.
After installation of the equipment, the user is required to pay an activation fee of Sh6,500, which is also the monthly subscription charge.
