How Starlink Kenya entry led to faster data speeds

Boxes containing Starlink kits pictured on November 11, 2024 at Geek Tech Robotic supplies shop at Bazaar Plaza in Nairobi.

Photo credit: File | Nation Media Group

Kenyans are now enjoying up to 18.5 percent faster fixed Internet connection speeds in the wake of Elon Musk’s Starlink entry in July 2023 as data providers revamped their packages to remain competitive. 

Latest data shows that average fixed Internet speeds hit a record 11.59 megabytes per second (mbps) in October, up from 9.78 mbps in January, according to Meltwater, an internet-monitoring firm based in San Francisco.

Time spent online and engagement with other web-facilitated services have also significantly risen since the beginning of the year, pointing to a surge in Internet usage and related activities in the country.

Safaricom, the top player in the fixed Internet market, raised its bandwidth for subscribers in September for the first time in years, contributing to the growth in speeds. Several regional providers also increased their speeds to retain their clientele.

The upgrade, which was viewed by many experts as a way for the giant telco to counter Starlink’s highly discounted prices in Kenya, saw Safaricom introduce a speed of 1,000mbps for the first time.

Data from the Communications Authority of Kenya (CA) shows that the number of Kenyans subscribing to higher-speed Internet connections (of at least 100mbps) has significantly increased in the wake of Starlink’s entry.

In June, there were 15,226 subscribers using speeds of between 100mbps and 1000mbps, a 53 percent rise from the 9,906 subscribers in January, and more than double the number in June last year.

Overall, those using fixed Internet, which has traditionally been a reserve of the rich, has risen by 13 percent since the beginning of the year, from 1.3 million to 1.5 million as of June.

More players have also entered the industry. At least nine new Internet service providers, mostly serving small regions, were also registered by the Communications Authority of Kenya (CA) this year, heightening competition in the market.

Analysts argue that while competition in the Internet market improved this year, it is not yet at its best, although its importance in boosting Internet access, usage and transparency in the industry cannot be overstated.

“Fair competition should always be encouraged because it inevitably leads to better products that are more transparent to the customers and serve the customers better. This is a very specific pain point for Kenyans,” says Mercy Mutemi, a digital rights activist and partner at Nzili and Sumbi Advocates.

“Those are the benefits that come with competition and that is why competition in this field must always be encouraged and must always be promoted.”

In September, President William Ruto backed the heightened competition sparked by Starlink and other entrants, saying it was pushing local Internet service providers (ISPs) to improve their services. He noted that Safaricom had “upped” its game following Starlink’s entry into the market.

“As the President of Kenya says, Starlink causes local competitors to provide better services,” Elon Musk said in response to Dr Ruto’s comment, made on the sidelines of the United Nations General Assembly in New York City.

Barely a year after its entry into Kenya, Starlink had driven satellite Internet uptake from just 405 users last year to 8,324 by June, claiming a 0.5 percent share of the overall fixed Internet market in the country.

However, it is Internet consumers who appear to have benefited the most from the heating competition in the fixed Internet supply market.

According to data from Meltwater, browsing speeds for fixed Internet users in the country have improved faster this year than they did over the last two years, without a corresponding rise in prices, indicating a boost in consumer welfare.

At the same time, the number of Internet users as a percentage of the entire population increased from 32.7 percent in January to 40.8 percent in October, according to a Meltwater survey.

Kenyans are also spending more time online compared to last year or earlier this year. On average, users in Kenya now spend 4 hours 49 minutes daily on the Internet, up from 4 hours 17 minutes at the start of the year.

The use of social media and other internet-facilitated services has also improved with growing Internet adoption and connection speeds. For instance, time spent on social media has increased from 3 hours 43 minutes to 3 hours 56 minutes.

Other services such as video calling, online shopping, and purchases of digital content—including movies, music, and cloud storage—have also grown since the start of the year, pointing to a notable increase in the use of internet services.

Globally, most countries have recorded an improvement in Internet speeds and usage, but Kenya’s is not just unprecedented, it is unique in the region. Uganda, for instance, has since a rise in Internet adoption by just one percentage point last year.

In Burundi, the number of those without Internet access reduced just marginally from 88.7 percent in January to 87.7 percent currently, and its fixed Internet prices are the least affordable in the world.

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