TL;DR
- Safaricom is seeking regulatory approval to build its first submarine cable to boost bandwidth, improve internet speeds, and reduce reliance on third-party providers, as reported by Business Daily.
- Safaricom aims to protect its market share from rivals like Starlink by investing in its own undersea cable, while local telecom operators raise concerns over Starlink’s operations and regulatory oversight.
- Starlink’s market share in Kenya has more than doubled in three months, reaching 1.1% by September 2024, driven by competitive pricing and hardware rental options.
- Submarine cables are faster and more reliable than satellite internet, capable of transmitting multiple terabits of data per second, making them crucial for international data transmission.
According to a recent publication by the Business Daily, Safaricom is seeking regulatory approval to build its first undersea fibre optic cable, aiming to boost bandwidth, improve internet speeds, and reduce reliance on third-party providers.
This move comes as the telecom giant faces increasing competition from satellite internet providers like Elon Musk’s Starlink.
The Communications Authority of Kenya (CA) has confirmed that Safaricom has applied for submarine cable landing rights.
Undersea cables, also known as submarine communications cables, are fibre-optic cables laid on the ocean floor to transmit data between continents.
They form the backbone of the global internet, carrying most international communications, including emails, webpages, and video calls.
Safaricom’s Push for More Bandwidth
Safaricom is expanding its data business to offset slower growth in its voice segment. The company is investing heavily to meet rising customer demand for high-speed internet.
A top Safaricom executive, who chose to remain anonymous, told Business Daily, “We are investing more to bring in additional capacity to support increased customer demand for high-speed internet.” Safaricom has formed a consortium to build the multi-billion shilling submarine cable, though details like the cable’s length, investment value, and consortium members remain undisclosed.
Also Read: Safaricom officially launches Ziidi Money Market Fund
Currently, Safaricom relies on third-party providers like SEACOM and Telkom Kenya for undersea cable connections.
Telkom Kenya operates and maintains five of the six submarine cables landing in Kenya, including the East African Marine Cable (TEAMS), which is partly owned by Safaricom.
However, Safaricom’s agreement with SEACOM is set to expire in June 2028, prompting the company to seek more control over its internet infrastructure.
Starlink’s Growing Popularity in Kenya
Starlink, backed by Elon Musk, has rapidly gained market share in Kenya since its launch in July 2023.
The satellite internet provider has more than doubled its market share in just three months, reaching 1.1% by the end of September 2024, up from 0.5% in June.
Starlink’s competitive pricing and hardware rental options have made it an attractive choice for Kenyans, especially in areas with limited terrestrial internet infrastructure.
Also Read: Second Starlink ground station in Africa goes live in Nairobi, Kenya
Despite its growing popularity, Starlink has faced resistance from local telecom operators.
Safaricom, Airtel Kenya, and Jamii Telecom have sent protest letters to the Communications Authority of Kenya (CA), citing concerns over illegal connections, harmful interference with mobile networks, and security risks due to the cross-border nature of satellite services.
The Competition Authority of Kenya (CAK) has also been dragged into court over Starlink’s operations.
Why Submarine Cables Matter
Submarine cables are significantly faster and more reliable than satellite internet connections. They can transmit multiple terabits of data per second, making them the preferred method for international data transmission.
Safaricom’s move to build its own undersea cable is a strategic effort to secure higher internet speeds and protect its market share from rivals like Starlink.
Ben Roberts, chairperson of the ICT Sector Board at the Kenya Private Sector Alliance (KEPSA), noted that new subsea cables are emerging as Kenya’s internet economy grows. “Safaricom possibly are thinking they need their own licence so as not to be dependent on Telkom Kenya,” he said.
The Future of Kenya’s Internet Market
Kenya’s broadband market holds significant potential, driven by the government’s push to digitize services and expand ICT access to rural areas.
Safaricom remains the market leader with a 36.4% share, followed by Jamii Telecommunications Limited (JTL) at 24% and Wananchi Group at 17.5%. However, Starlink’s rapid growth and competitive pricing are challenging the status quo.
Safaricom’s investment in submarine cables is a clear signal that the company is preparing for a future where high-speed internet is a key differentiator. As Starlink continues to expand, the battle for Kenya’s internet market is set to intensify, with both submarine and satellite technologies playing critical roles.
