A new wave of competition has gripped the internet market, signalling cheaper services in the short term which could unlock bigger economic opportunities for consumers.
Partly driven by the aggressive influx of commercial satellite internet provided by among others, Elon Musk’s Starlink, the disruption is turning up the heat on traditional internet service providers, including leading telcos who now have to rethink their data pricing models.
On Monday, Airtel Kenya announced a new free data campaign targeting customers who join the network with new smartphones as well as existing customers upgrading from feature phones to smartphones in a move the firm says is aimed at fuelling the digital revolution in the country.
Dubbed the GB kwa GB campaign, the initiative will see customers get free 1GB of data every week for six months after making an airtime top-up of at least Sh50 weekly.
It comes barely a week after Starlink cut the cost of obtaining the equipment – the second price reduction in three months – down to Sh29,999 from the original Sh89,000 when the firm launched operations in Kenya.
Analysts have maintained that internet vendors will either have to toe the line about pricing, or risk being pushed out of business by market forces.
“What the satellite providers and other alternative vendors bring to the market is the freedom to choose. They’re liberalising a market that has for years been held captive by a few players and this now offers hope for a whole new business organisation,” observes Nairobi-based software engineer Gathirwa Irungu.
“Since consumers are primarily moved by prices, the emerging dynamics will compel all providers to play ball or ship out and this then gives rise to price cuts that span across the entire space.”
