Kenya's dominant telecommunications provider Safaricom is urging the Communications Authority (CA) to consider a new regulatory framework for satellite internet providers operating in the country.

The proposal, outlined in a memo to the CA, suggests requiring satellite companies to partner with existing local mobile network operators like Safaricom.

This move comes amidst Starlink, a satellite internet provider owned by Elon Musk's SpaceX, experiencing a surge in popularity in Kenya.

"We propose that the CA instead consider mandating that  Satellite service providers should therefore not be granted a license directly/independently but rather only permitted to operate under the license rights of the local licensee," Safaricom suggested.

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The company's competitive pricing plans and hardware rentals have attracted a growing number of users, potentially impacting Safaricom's dominance in the data market.

Safaricom expresses concerns in the memo, particularly regarding the lack of a physical presence for satellite providers like Starlink.

They argue that relying solely on third-party distributors weakens the government's ability to enforce regulations and ensure compliance.

"Granting a license to an entity that will typically operate in Kenya without having a physical presence in the country (via third-party partners/resellers only. This would mean negligible control for the government to ensure accountability for non-compliance issues," the telco argued.

The proposed partnership model would see satellite internet providers operating as "infrastructure providers" for established mobile network operators.

This, according to Safaricom, would ensure investment in Kenyan infrastructure, employment of local personnel, and adherence to national regulations.

Safaricom also highlighted the challenges that come with satellite coverage, stating, “Satellite coverage inherently spans multiple territorial borders and in doing so has the potential to illegally provide services and cause harmful interference within the territorial borders of the Republic of Kenya.” 

The Communications Authority is yet to respond to the proposal. However, the growing popularity of Starlink, evident in a tenfold user increase in the first quarter of 2024, has pressured local players like Safaricom.

This situation has prompted Safaricom to explore launching its own satellite internet service, while simultaneously lobbying for a regulatory shift in the market.

With Starlink's growing user base and Safaricom's potential entry into the satellite internet space, the Kenyan telecommunications landscape is poised for a period of significant change.

The Communications Authority's response to Safaricom's proposal will be a key factor in determining the future structure of this evolving market.