- Safaricom, a telecoms company in Kenya, has debunked claims that it has restricted the payment of Starlink services via its mobile money product, M-PESA.
- This clarification comes after a user on X (formerly Twitter) posted that the telco had cancelled payment access for Elon Musk's Starlink service. The post read, “WAR IS WAR. Safaricom has cancelled the payment of STARLINK Internet via M-PESA.”
- However, Safaricom refuted the statement, confirming that the payment option is still available and that the claim is not factual. Safaricom also advised users to reach out to the company if they encounter any challenges.
Before the X post, Safaricom reportedly proposed that the Communications Authority (CA) should consider mandating that satellite Internet providers operating in Kenya partner with a local licensee. The telco argued that allowing satellite providers to operate independently without a physical presence would make regulation and accountability challenging for the government.
It also suggested that the regulator assess the risks and ensure that satellite providers operate under the licence of a local company to maintain control and accountability.
However, the CA has acknowledged the telco’s concerns, stating, "Licensees or service providers are free to raise any issue in the market with the ICT regulator.
“The Authority independently examines such issues within its mandate and regulatory framework and responds appropriately. It is normal practice as the Authority seeks to facilitate the development of the dynamic and rapidly evolving ICT sector,” the regulator added.
Moreover, in Kenya, Starlink, which launched in the country in July 2023, has introduced a new rental kit option, allowing customers to rent the hardware — an option designed for those who cannot afford to purchase the kit outright.
Meanwhile, Safaricom has reportedly lowered its Internet pricing to win back customers who had switched to Starlink.
For the fiscal year ending March 31, 2024, Safaricom reported earnings of $1.07 billion, exceeding market expectations and the group’s guidance range. In July, the company also aims to establish 1,700 5G sites, having said it surpassed Airtel Kenya by 113 sites.
Recall that in July 2023, Safaricom planned to launch satellite Internet services to compete with Starlink in the country.
While regulation and compliance have been significant setbacks for Starlink's launch in some African countries, others that initially banned the Internet service provider have since granted it licences and approved its launch. Recently, Starlink launched in Botswana after a year-long regulatory struggle.
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