Cost Of Starlink Internet Could Shoot Up After CA Eyes Satellite Providers

The prices of satellite communication service providers, including that of American satellite internet firm Starlink, could increase after the Communications Authority of Kenya unveiled plans to raise licensing fees for satellite internet service providers (ISPs).

According to a proposal published by the CA in December 2024, Kenya plans to review the Satellite Landing Rights (SLR) licence it requires these companies to obtain to set up shop locally. SLR licensees acquire rights to land their satellite signal in Kenya.

The price of the SLR licence will increase from the current Ksh1.6 million (USD 12,500) to Ksh15 million. Furthermore, the government intends to raise the annual operating fees to Ksh4 million or 0.4 percent of the annual gross turnover, whichever is higher.

The new pricing comes after the regulator announced plans to merge the Submarine Cable Landing Rights (SCLR) licence, which is issued to companies that lay submarine cable systems passing under the sea to the mainland, with the SLR licence, creating a new category called the Landing Rights Licence (LRL).

In addition to the initial licence fee and annual operating fee, companies will be required to pay a Ksh5,000 application fee for the licence whose term is 15 years. This new category will attract the said charges, with the companies forced to pass down the new cost to consumers in Kenya using Starlink for instance.

“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated. 

The LRL licence will apply to anyone seeking to set up terrestrial cables that only transit Kenya and are destined to neighbouring countries, satellite hubs exclusively serving clients outside Kenya, and other satellite services like telemetry, space research, and meteorological aids.

“This change aims to ensure technology neutrality and allow investors to land signals using any technology. Furthermore, this new Licence category will expand its scope to accommodate investors,” stated CA.

In addition to the license fee increase, the Authority has also proposed to expand the scope of satellite ISPs. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research.

This could give Starlink an opportunity to establish ground stations in Kenya; a move that has been delayed previously due to regulatory challenges.

“Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” the Authority stated.

Starlink has been breaking more ground in Kenya following its entry to the Kenyan market in July 2023 with a promise of internet connection at low prices, despite facing backlash.

It really gained prominence the following year in the heat of Gen Z protests against the Finance Bill 2024 with Kenyans turning to the internet in massive numbers to stay informed on current affairs in the country. Data from Kenya's Communications Authority (CA) showed that Starlink got over 8,000 customers in Kenya by June 30, 2024, accounting for a 0.5 per cent market share.

Starlink's uptake was impressive in 2024. This is because of its ability to support services in areas not possible with terrestrial solutions such as North Eastern parts of Kenya.