Explainer: Why satellite Internet is a market disruptor (2024)

Elon Musk’s satellite Internet provider Starlink has been on an aggressive drive to net subscribers across all the global markets that it operates in, including Kenya.

Recent developments have seen it rattle traditional telecommunications operators such as Safaricom, which has petitioned the industry regulator to review any decision to license independent satellite service providers.

How is satellite Internet different from fibre connections?

It uses satellites orbiting earth to provide Internet access. Unlike traditional cable or fibre-optic connections, which rely on physical wires, satellite Internet beams data from a ground-based station to a satellite, which then sends the data back to a satellite dish installed at your home.

For example, when you request data by clicking on a web page or streaming a video, the signal is sent from your computer to the satellite dish. The dish then transmits the signal to the satellite in space which then relays a message back down to your dish to complete a connection.

What are the key uses of satellite Internet?

Satellite Internet has a host of uses, including mapping routes and tracing cargo in logistics, providing direct-to-consumer market services in ecommerce, connecting schools and universities with online classrooms and support set-up, among others.

Who is best suited for Satellite Internet?

Households and institutions in rural and remote areas are the most ideal candidates for satellite Internet services because such areas have limited or no cable Internet connections.

Is satellite Internet reliable in bad weather?

Bad weather affects satellite Internet providers, especially in extreme cases of heavy rain, snowfalls or dense cloud cover which can disrupt the signal between the satellite dish and the satellite in orbit.

Like TV and radio broadcasts, water molecules in the air can absorb the energy required to transmit data communications.As such, heavy rain or thunderstorms could result in weaker satellite Internet signals and lead to slower speeds or temporary loss of service connectivity.

How does Starlink satellite system work?

The Starlink system consists of a vast network of small satellites in low earth orbit, flying at altitudes between 340 and 1,200 kilometres. Users on the ground access the Internet via phased-array user terminals, which are the satellite dishes, and these align themselves with the passing satellites thus allowing for a continuous and stable connection.

What benefits come with the Starlink?

A major plus in using Starlink is its potential to deliver high-speed Internet with low latency, making it ideal for use even in rural or remote areas where traditional Internet services are either limited or unreliable.

The Starlink services are tailored for both fixed and mobile applications, including vehicle-mounted solutions for use on the go as well as on boats and ships operating both inland and offshore.

How does Starlink’s entry into Kenya affect traditional vendors?

Starlink’s connections have already started shaking up traditional telecoms services, which are based on infrastructure that has left many areas without coverage, especially rural parts of the country.

The multinational’s competitive pricing has shaken the market in Kenya. A Business Daily spot check, for instance, reveals that Starlink’s monthly charge of Sh1,300 on its recently introduced 50 gigabytes (GB) data plan is less than half the asking price of Airtel Kenya which sells a similar package at Sh3,000.

Safaricom has already written to the Communications Authority of Kenya asking the regulator to reconsider its decision to grant licences to satellite Internet providers arguing that this could give rise to illegal connections as well as harmful interference to mobile networks.

How will Starlink’s direct-to-cell service work?

Direct-to-cell satellite technology allows satellites to connect to mobile devices, eliminating the need for cell towers and base stations that traditional cellular networks rely on.

The multinational plans to roll out new satellites with an advanced modem onboard that will act like a cellphone tower in space allowing network integration similar to a standard roaming partner.

Once activated, the service will connect with ordinary phones without the need for extra equipment provided the devices are 4G LTE-compatible. LTE is a technology for wireless broadband communication for mobile devices and is used by phone carriers to deliver wireless data to a consumer’s phone.

Is Starlink safe?

The firm, on its official website, states that although it makes every attempt to encrypt information sent via its services to and from the Starlink equipment, it cannot guarantee that the security measures put in place will prevent every unauthorised attempt to access personal information.

“Although we endeavour to keep information secure, we cannot guarantee that our security measures will prevent every unauthorised attempt to access, use or disclose personal information,” reads the statement on the site’s legal section.

What are the other satellite options available in Kenya?

The communications regulator has granted satellite landing rights to nine firms, including Globalstar Inc, Iridium Satellite, Mawimbicom Limited, Omnispace LLC as well as Power Telco Technologies East Africa Limited.

Others are Seacom Kenya Limited, Telkom Kenya Limited, the East African Marine System Limited, and Viasat Kenya Limited.

Who are the top global Internet players?

Starlink, OneWeb, Telesat, Hughes Communications, Viasat, SES, E-Space and Rivada Space Networks.