 has unveiled a proposal to significantly increase licensing fees for satellite internet service providers, including Starlink.){kind=link}
In a move set to reshape the satellite internet landscape in Kenya, the Communications Authority of Kenya (CA) has unveiled a proposal to significantly increase licensing fees for satellite internet service providers, including Starlink.
This proposal, part of the CA’s Review of the Telecommunications Market Structure 2024, aims to enhance regulation in the sector and ensure technological neutrality.
Under the proposed framework, the initial Satellite Landing Rights (SLR) license fee would rise from the current $12,500 (approximately Ksh.1.6 million) to Ksh.15 million.
Additionally, satellite internet providers would be required to pay an annual operating fee of Ksh.4 million or 0.4% of their annual gross turnover, whichever is higher.
These adjustments are part of the regulator’s strategy to align with the evolving dynamics of the global satellite communication industry.
The CA also plans to consolidate the Submarine Cable Landing Rights (SCLR) license with the SLR license into a new category called the Landing Rights License (LRL).
This unified license will apply to entities establishing terrestrial cables transiting through Kenya, satellite hubs serving international clients, and other satellite services such as telemetry, space research, and meteorological aids.
Impact on Starlink and Other Providers
Since its entry into the Kenyan market in July 2023, Starlink has disrupted the internet service provider sector by offering high-speed satellite internet, gaining over 8,000 subscribers by mid-2024.
However, the proposed fee hikes could alter the competitive landscape, potentially increasing operational costs for providers and, by extension, the pricing of services for consumers.
The proposed changes are open for public scrutiny, with stakeholders invited to submit comments until January 23, 2025. The CA intends to implement the new regulations in the 2025/2026 financial year.
Regulatory Objectives and Market Competition
The CA’s review also seeks to address challenges posed by the rapid growth of satellite communication technologies.
By merging licensing categories and introducing standardized fees, the regulator aims to create a level playing field for service providers. Additionally, the changes aim to support Kenya’s position as a regional technology hub by encouraging investment in advanced communication technologies.
The competitive environment has intensified since Starlink’s debut, with traditional internet service providers now vying to retain their market share. The new licensing structure is expected to influence strategies across the industry, from pricing to infrastructure development.
Future Outlook
As Kenya moves toward implementing these changes, the satellite internet sector’s trajectory will depend on how providers adapt to the revised cost structure.
While the CA’s proposals aim to enhance regulation and technological inclusivity, the ripple effects on affordability and accessibility for consumers will be closely watched.
Stakeholders and industry experts have expressed mixed reactions to the proposed fees, with some highlighting the potential for innovation and growth, while others caution against pricing out emerging providers.
The next few months will determine how the satellite internet ecosystem in Kenya evolves in response to this regulatory shift.
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