Safaricom PLC recently hinted at potential collaboration with Starlink, a satellite internet provider, to enhance high-speed internet access in Kenya’s rural areas. Safaricom CEO Peter Ndegwa shared this update amidst growing competition from Starlink, which entered the Kenyan market a year ago, creating a buzz with its low-priced internet packages.
Speaking on the issue, Ndegwa acknowledged the competitive pressure posed by Starlink but made it clear that Safaricom would not engage in a price war. “Our focus is on the value our customers receive,” Ndegwa stated, emphasizing that simply lowering prices without improving service quality could lead to customer dissatisfaction.
In response to Starlink’s growing presence, Safaricom has chosen to enhance customer experience and improve its service offerings. The company recently upgraded internet speeds for both home and business packages, opting to increase value rather than compete solely on price.
President William Ruto noted that competition between Starlink and local internet service providers, including Safaricom, would ultimately benefit consumers by ensuring better service quality. Ndegwa echoed this sentiment, stating that the rivalry has pushed Safaricom to innovate and provide faster, more reliable services.
“We are streamlining the customer journey to ensure easier access to our 4G and 5G routers at convenient locations,” Ndegwa explained. Safaricom is also transitioning from bundle-based offerings to speed-based internet packages for both home and business users, further improving customer satisfaction.
“From a satellite perspective, we have to partner with Starlink or other satellite providers in future to make sure that that technology plays right through,” Ndegwa said in an interview in New York.
“We have had some discussions, and we will continue to have those discussions to the extent that they complement what we are offering.”
While competition remains intense, Ndegwa revealed that Safaricom and Starlink have discussed future collaboration opportunities. Such a partnership could leverage Starlink’s satellite technology to improve connectivity in rural areas where fiber infrastructure is challenging to deploy.
Ndegwa expressed optimism about the potential partnership, noting that it would benefit underserved regions without negatively impacting competition between the two providers
Safaricom’s approach to navigating competition from Starlink involves prioritizing customer value and service quality, while also exploring strategic partnerships that could further expand internet access across Kenya.