Competition watchdog intervenes as Starlink suspends new client sign-ups

Starlink satelite dish. [Getty Images] The Competition Authority of Kenya (CAK) is now calling on consumers dissatisfied with Starlink's service to formally voice their concerns after the satellite internet provider stopped accepting new subscribers in certain counties due to capacity limitations. Starlink, which has been expanding its satellite internet services across Kenya, announced recently that it would inform consumers when the service is available again in the affected areas. However, this sudden suspension has left many potential customers who had already bought the Starlink units frustrated. In a statement, CAK acknowledged the situation and urged aggrieved consumers to first reach out to Starlink for resolution. The authority emphasised that customers who are not satisfied with the company's proposed remedial measures should consider lodging a formal complaint with CAK for further investigation. "The Competition Authority of Kenya has taken note of media reports indicating that satellite internet provider, Starlink, has suspended onboarding of new subscribers to certain counties in Kenya due to capacity limitations. "The firm has also indicated that it will notify consumers once the service resumes in the affected areas," noted CAK in response to queries by Sunday Standard. "Customers dissatisfied with the remedial measures proposed by the internet provider may complain with the authority for consideration." Kenyans eager to connect to Elon Musk's Starlink internet service are now facing unexpected delays, as the US-based company has placed the capital, Nairobi and its environs, on a waiting list due to skyrocketing demand that has surpassed its current capacity. Nairobi and its surrounding areas, including Kiambu, are now on hold for Starlink, according to an availability map published by the company meaning that any new customers in these regions cannot subscribe to the satellite internet service right away. Expanding capacity While Starlink prioritises expanding its capacity, no timeline has been provided for when new users will be allowed to join the service. Starlink uses low-orbit satellites to deliver broadband to users, but each satellite can only serve a limited number of users at any given time. Analysts warn that while Starlink's technology holds transformative potential for internet access in Kenya, the current bottleneck may lead to frustration among eager potential users. Sunday Standard could not immediately reach Starlink chief executive Musk or his representatives for comment on when the waiting list is likely to be lifted for new users. Local sources indicated that the company is working diligently to enhance its infrastructure to accommodate the influx of new users. However, for now, those in the capital hoping to sign up will have to wait. The arrival of Starlink in July with its promise of reliable access even in Kenya's most remote areas rattled an industry long dominated by a few established players. Starlink reached three million subscribers globally in May 2024 and boasts approximately 6,646 satellites in orbit as of June 2024, providing high-speed internet from low-orbit satellites. This rapid growth has already begun to disrupt the local internet market, leaving traditional providers such as Safaricom, Telkom Kenya, Zuku and Jamii Telecom scrambling to keep pace with the burgeoning demand for reliable internet access. The delays in onboarding new users could, however, present a silver lining and breathing space for local internet service providers, offering them a chance to reclaim ground lost to Starlink's high-speed allure. Safaricom, for instance, has replied to the challenge by accelerating its infrastructure investments, pouring billions into expanding its fibre-optic network and rolling out 5G services nationwide. The telco has also been lobbying the government to impose stricter regulations on Starlink's operations, arguing that the satellite provider's tax-exempt status and ability to undercut local pricing threatens the country's digital development efforts. President William Ruto recently commended Starlink's rapid expansion, underscoring the importance of improved connectivity for Kenya's economic growth and development. In October, the Parliamentary Committee on Communication, Innovation and Information also threw its weight behind new players in the internet service providers' market. The committee said the entry of new players would lead to a drop in internet charges, which was good for Kenyans. Committee chairman John Kiarie, however, said they were looking into it to ensure the US company abides by the law. "Competition is healthy as consumers end up benefiting from better services and lower internet rates and innovation brings with it disruption," he said in Naivasha during a meeting of the committee. SpaceX, which backs Starlink, aims to launch as many as 40,000 satellites in the coming years to ensure global coverage without service interruptions. However, the company currently faces the challenge of needing more satellites in orbit to boost network capacity. Musk has stated intentions to double the number of Starlink satellites within the next year. While SpaceX has acknowledged some users are encountering congestion issues, the company says it is committed to alleviating these problems by launching additional satellites. Earlier in the year, Safaricom had written to the Communications Authority of Kenya seeking to have Space X, compelled to partner with local internet providers. However, in a suit filed at the High Court, legal advocacy group Kituo Cha Sheria said the move would not only lock out Kenyans from enjoying faster internet speed but would sustain expensive costs to access it. Scaling up challenges Despite the initial enthusiasm surrounding Starlink's arrival, the suspension highlights the challenges of scaling up services in response to quickening demand, analysts said. Starlink's satellite system is capable of delivering speeds up to 200 Mbps anywhere, provided users have a clear view of the sky. Since its initial rollout in 2020, it has garnered positive feedback globally, particularly from those in remote regions. Since launching in Kenya four months ago, Starlink has faced regulatory hurdles in other African nations but has introduced competitive pricing options, allowing Kenyans to rent the necessary hardware instead of purchasing it outright for over Sh45,500. Many Kenyans have welcomed Starlink's entry, viewing it as a potential disruptor in the telecom landscape. Starlink's high-speed, low-latency service has generated optimism among those in rural and underserved areas, who have long struggled with poor connectivity and high costs from existing telecom providers. With approximately 60 per cent of the roughly 7,500 satellites in orbit, Starlink is becoming a dominant force in the satellite internet sphere, now operating in several African nations including Zimbabwe, Nigeria, Mozambique, Malawi, Madagascar, Benin, South Sudan, Eswatini, and Sierra Leone.

Competition watchdog intervenes as Starlink suspends new client sign-ups

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