Kenya’s Communications Authority has suggested a tenfold increase in licensing fees for satellite internet providers, raising the 15-year fee from $12,302 to $115,331 and introducing a 0.4% annual levy on gross turnover. This move, aimed at fostering technology neutrality, could allow satellite providers like Starlink to operate terrestrial cables and establish ground stations. Since launching in Kenya in June 2023, Starlink has grown rapidly, registering over 8,500 users by December 2024. Its affordable, high-speed internet disrupted the market, forcing competitors to enhance their offerings. Still, its growth prompted local ISPs like Safaricom, which argued that satellite ISPs operating without local partnerships pose security risks, to lobby for stricter regulations. While the fee hike could hinder smaller ISPs, the expanded scope of satellite operations may attract broader investments, balancing regulatory challenges with potential growth opportunities in Kenya’s internet landscape.
Source: Techcabal