CA reviews Airtel, Elon Musk deal amid calls interference fears

Elon Musk’s Starlink entered Kenya as a disruptor. Two years on, it is reshaping the market through partnerships with mobile operators.

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The Communications Authority of Kenya (CA) has started a review of the deal between Airtel Kenya and Elon Musk's Starlink to operate a direct-to-cell service, looking to curb potential interference with mobile phone networks.

The communications regulator said it has opened discussions with the telecoms operator over the deal that will mark the first time Kenya will allow a satellite operator collaborating with a mobile phone network to provide telecommunications services from space.

“The Authority and Airtel Networks Kenya Limited have had meetings to discuss the partnership. Airtel has submitted a formal application for consideration by the Authority, which is currently being reviewed,” the CA told the Business Daily in an email response.

Airtel Africa has partnered with SpaceX to introduce Starlink's direct satellite-to-mobile service to all its 14 markets.

It will start with delivering texts and calls over the internet like WhatsApp and upgrade in 2028 to allow for direct phone calls and SMS in a bid to extend services to remote areas.

Telecoms experts have raised concerns over transmission from higher-power satellites, arguing it could result in harmful 

interference and impact the ground network services deployed by operators like Safaricom, Airtel and Telkom Kenya.

Transmission from the satellites creates increased noise levels that degrades the capacity of 3G, 4G and 5G networks, the analysts add, which is the backbone for delivery of high-speed internet services and voice.

The CA is expected to review the noise levels coming from the Low Earth Orbit (LEO) satellites and their zones of operations, and issue conditions that will protect terrestrial wireless carrier operations.

Telecoms operators in Kenya currently rely on ground-based and rooftop cell towers, and the use of direct satellite-to-mobile services will test the CA’s regulatory regime.

Airtel Africa customers with compatible smartphones in regions without terrestrial coverage will have network connectivity through Starlink.

The deal also includes "support for Starlink's first broadband Direct to Cell system, with next-generation satellites that will be capable of providing high-speed connectivity to smartphones with 20x improved data speed," Airtel Africa said.

The CA approval will mark the first time Kenya will authorise a satellite operator collaborating with a wireless carrier to provide supplemental telecommunications coverage from space on some flexible-use spectrum bands allocated to terrestrial service.

It is expected to lean on a framework for supplemental coverage from space to extend the reach of wireless networks to remote areas while preserving high service quality in 4G and 5G networks and preventing harmful interference.

“The day we get approval and launch this service in Kenya, all customers in every corner of the country will get coverage,” said Airtel Africa CEO Sunil Taldar during his recent visit to Nairobi.

“It is Gen 1 for the next two years. It will offer OTT (over the internet). When Starlink launches Gen 2 in 2028, it will offer a full suite of services such as making calls and receiving a full data connection.”

Starlink has independent operations in Kenya after making entry in July 2023. It is the country’s ninth-largest internet service provider (ISP), with 0.8 percent of the local internet market.

The number of Kenyans using satellite internet has surged since Starlink, a subsidiary of Musk’s aerospace company SpaceX.

The American firm, riding on the back of the world's richest person with a net worth of $834 billion (Sh107.5 trillion), is betting on lowering internet costs including hardware acquisition and lease plans in a segment dominated by Safaricom, Jamii Telecommunications Limited (JTL) and Zuku.

Starlink emerged as a potential threat to Safaricom, which in 2024 petitioned the CA to withdraw the licence granted to the American tech giant, claiming it could facilitate illegal connections and disrupt mobile networks.

Safaricom has since made peace with Starlink. It also plans to use Starlink’s network to broaden its reach in remote areas.

Its voice share stood at 61.19 percent against Airtel’s 38.59 percent. Airtel has 33.5 percent of mobile broadband market and Safaricom has 62.7 percent.

Safaricom’s South African parent company, Vodacom, signed an Africa-wide deal with SpaceX last November, which will see the Kenyan firm integrate Starlink's satellite technology for data relay into its mobile network.

In this case, traditional cell towers are equipped with a satellite terminal, which transmits data directly to the LEO constellation, which then routes it to the core network. The CA said Safaricom has yet to seek approval for the integration.

Direct-to-cell (D2C) comes as a solution to so-called dead zones – areas without reliable internet connectivity due to geographical barriers, dense construction, infrastructure gaps, or government restrictions, such as remote locations, flights, and the sea – where other connectivity technologies like fibre optic and cellular fail to reach.

Starlink says it operates over 8,000 LEO satellites, 650 of which are dedicated to D2C services. It is the world's largest D2C constellation that can deliver data, voice, video and messaging to mobile dead zones across five continents.

Africa’s largest telecoms operator, MTN, has also disclosed that it is exploring partnerships with LEO satellite providers, while the US telcos T-Mobile and AT&T have partnered with SpaceX and AST SpaceMobile, respectively, to launch D2C service.

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