The Communications Authority of Kenya (CA) is relying on the United Nations agency to develop regulations that will control satellite internet providers such as Elon Musk’s Starlink in the quest for fair competition.
The CA reckons that the cross-border nature of Starlink’s operations and its novel technology of using over 6,400 active satellites orbiting the earth to provide low-latency broadband has triggered a regulation puzzle.
The telecoms regulator said in response to a suit filed by a local NGO that Kenya will hinge its regulations of cross-border satellite providers on rules that UN’s International Telecommunication Union (ITU) is working on.
Starlink, the satellite unit of SpaceX, operates in several African countries but has faced regulatory challenges in others and resistance from state telecoms monopolies.
“Kenya is a member of the ITU and is actively involved in the regulatory process both at the global stage and on the domestic front as an interim measure,” the CA said in court.
“The urgent consultation and conversation between member states of ITU with a view to coming up with a globally harmonised template of regulations for the technology, which the member states then can panel-beat to suit their domestic or municipal circumstances and national interests.”
Kituo Cha Sheria, a legal lobby group, has sued the CA arguing that the regulator is supporting Safaricom in the push to curtail Starlink’s operations in Kenya.
The CA, says the NGO, responded to Safaricom on July 9 that it’s reviewing the telecoms company’s concerns over Starlink.
Safaricom in July urged regulators to consider requiring satellite internet providers such as Starlink to partner with local mobile network operators, saying its present dealings could allow illegal connections and harmful interference to mobile networks.
It also cited security risks and lapses in regulatory oversight due to the cross-border nature of satellite services.
But the regulator told the High Court that its response to Safaricom would not prompt an immediate change of rules for Mr Musk’s firm, calling Kituo Cha Sheria a proxy of Starlink in the suit.
“We are still in the process of developing the regulatory framework for the subject sector to ensure fair competition and quality of service for all industry players,” said the CA, adding that Mr Musk’s activities have triggered a global regulatory “conundrum.”
It says direct-to-device satellite technology presents a regulatory challenge not only to Kenya but many countries globally.
Kenya says global guidance is needed on spectrum allocation to guard against satellites interfering with other firms like Safaricom, how to handle space debris, data privacy and coordination of regulations across countries given satellites operate across international borders.
“Ensuring compliance with these diverse regulations adds complexity for both satellite operators and regulatory agencies,” said the CA. The regulatory challenges have triggered a billionaires’ fight in India.
Mukesh Ambani, Asia’s richest man, through his company, Reliance has asked India’s telecoms regulator to review the potential reach of Mr Musk’s Starlink before awarding satellite spectrum amid concerns local players could suffer.
Mr Ambani once gave data for free on his mobile plans, and Mr Musk has adopted similarly aggressive tactics.
In Kenya, Mr Musk priced Starlink at Sh1,300 per month, versus $120 (Sh15,504) in the United States, unsettling local telecoms players. Airtel Kenya and Jamii Telecom have also sent protest letters to the CA.
The number of Kenyans using satellite internet has surged since Starlink entered the local market in July last year.
The American firm, riding on the back of the world’s richest persons with a net worth of $237 billion (Sh30.6 trillion), is betting on lowering internet costs, triggering a response from the dominant Safaricom.
The CA offered Starlink a temporary one-year licence from June 8, 2023.
“The authority has studied your request and authorises you to temporarily operate in the proposed Ku frequency band and Swam technology in the VHF frequency band for a period not exceeding 12 months,” said a letter from the CA to Starlink.
President William Ruto has publicly supported Mr Musk’s entry into Kenya.
Kenya is among the few countries in Africa that have allowed Starlink. Others are Nigeria, Rwanda, Mozambique, Malawi, Zambia, Benin and Eswatini.
But Starlink’s entry in Africa has been met with numerous regulatory obstacles in some countries. Several African markets have classified Starlink as ‘illegal,’ within their territories. They include Cameroon, Cote d’Ivoire, South Africa, Senegal and DRC.
Earlier this year, Cameroon ordered the seizure of Starlink equipment at ports as the provider was not licensed.
Part of the concern by governments in Africa is the need to control the content being shared on Starlink.
In the case of South Africa, Mr Musk’s country of birth, Starlink was denied a licence after it failed to comply with the requirement to cede a 30 percent stake to the locals.
Starlink has struck partnership agreements to distribute and provide internet services in remote areas in many parts of the world, shying away from equity or ownership deals.
It tapped little-known firm Karibu Connect as a reseller of its products in Kenya.
Vodafone, which has a 5.0 percent direct stake in Safaricom and a 35 percent indirect ownership via Vodacom, has also shied from dealing with Starlink.
Instead, it has partnered with Starlink’s rival, Amazon.com’s Kuiper, for internet networks in Europe and Africa where satellites would be used to connect mobile base stations in remote locations to Vodafone core networks, eliminating the need for fibre-based or fixed wireless links.
