Safaricom avoids price wars with Starlink in internet market battle
- by Business Daily Africa
- Sep 23, 2024
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A sign showing Fibre ready zone in Nyeri town.
Photo credit: Read: Safaricom firms up Internet market share with 43pc home fibre link rise
Latest data from the Communications Authority of Kenya (CA) reveals that following Starlink’s entry into the Kenyan market, satellite internet usage has more than tripled to 4,808 subscriptions in March, up from just 1,354 in September last year.
The American tech-giant has emerged as a potential threat to Safaricom, which last month requested CA to withdraw the licence granted to Starlink, claiming it could facilitate illegal connections.
Safaricom’s introduction of the new plan, which offers 1,000mbps speed, seems to be a go at the market share of the satellite ISPs in the country, as it is them that have mostly been serving such customers.
Based on the latest CA data, customers buying between 100mbps and 1,000mbps comprise about 94 percent of satellite internet subscribers, while majority of fixed fibre and cable internet customers use between two and 10mbps.
Safaricom will also “carry out estate clinics, enhance capacity in congested areas, and avail competitive 4G and 5G propositions for homes in areas outside fibre coverage,” the telco said Monday, pointing to a revamped focus on customer satisfaction as Musk’s penetration of the market deepens.
It has also introduced a ‘Family Share Plan’ which integrates voice, mobile data, and SMS with the home fibre internet, and can be shared with up to five people, at an additional charge.
Safaricom currently controls the giant share of the fixed internet market, with about 37.4 percent of all subscribers, followed by Jamii Telecoms (Faiba) and Wananchi Group (Zuku), which enjoy about 23 percent and 19 percent of the market share respectively.
For Safaricom, fixed internet is one its fastest growing business segments, and the only one that has maintained a double-digit growth for the last three years.
It accounted for about 4.5 percent of the firm’s revenue in the last financial year, up from about 1.4 percent in the year to March 2021, highlighting the segment’s growing significance in Safaricom’s financials.
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