American satellite internet company Starlink, majority-owned by billionaire Elon Musk, has announced the introduction of its relatively cheaper Mini package in Kenya as part of its expanded services in the country. Having launched its services in Kenya back in July 2023, Starlink instantly became a favorite in the local market due to its high-speed connectivity at somewhat unbeatable prices in the market, while the costs of its hardware have kept at bay some of those potential customers. 

A More Affordable Alternative for Kenyans

The billionaire owner of Starlink, Elon Musk, had earlier hinted at the cheaper option. In response to a query from a Kenyan user on X, formerly Twitter, Musk said the Mini version would be "about half the price of the standard terminal" and it would be available later in the year. Well, that promise is now reality as Starlink has just introduced its Mini kit at a heavily subsidized price of Ksh.27,000. Its monthly service packages will start from as low as Ksh.1,300.

Starlink Mini vs. Standard: What are the Differences?

The Starlink Mini kit is cheaper and also smaller in size, hence more portable compared to the Starlink Standard. Here are the major differences:

  • Coverage: Starlink Mini covers an area of 112 square meters; it can connect basic internet in both fixed and portable situations. Starlink Standard covers up to 297 square meters of area; it is more ideal for large areas and more severing environmental conditions.
  • Weather Resistance: Whereas the Mini is built for normal use, Starlink Standard has been made to take in some of the worst weathers and environmental elements for reliability at worst conditions.
  • Device Connectivity: Ranges from Starlink Mini handling up to 128 devices-good enough for most homes and small businesses-to a maximum of about 235 devices that the Standard could handle.
  • Wi-Fi Router: Starlink Mini comes with an integrated Wi-Fi setup, and Standard has a more capable Gen 3 Wi-Fi router within.

Price Cuts and New Offers

When Starlink went live, it started to retail its hardware kit at Ksh.74,000, a relatively expensive kit for many Kenyans. To avail it easily, Starlink began to sell the kits through retail stores such as Carrefour and online platforms like Jumia, before trimming the price down to Ksh.39,500. In August this year, the firm cut the price of the kit further to Ksh 29,000.

Apart from that, Starlink last month introduced a rental for the kits, making the service even more affordable. Customers will now pay a one-time hardware activation fee of Ksh 2,700 and a monthly rental fee of Ksh 1,950. Service plans start from Ksh 1,300 a month for a 50 GB data plan at speeds of up to 200Mbps.

Safaricom's Worries and Market Reaction

But Safaricom, the powerful local telecom, has taken notice of Starlink's entry into the Kenyan market. It has written to the Kenyan government to raise a complaint against licensing satellite internet providers like Starlink because it raises the potential for illegal connections and interference to MNOs. Safaricom currently commands 36.7% of the local fixed broadband market and wants the CA to rescind its decision.

However, the Kenyan government has been supportive of the presence of Starlink, despite Safaricom's objections. Recently, President William Ruto expressed that the competition brought about by Starlink has prompted existing players to up their game for the benefit of the consumers.

Response of Safaricom

Pressed by Starlink's entry and competition which is growing, Safaricom announced new improvements. This week, it announced new internet speeds, among them a 1GB-per-second Platinum package at Ksh 20,000, that will be targeted at retaining premium customers to defend its market position.