Kenya's Communications Authority has proposed a significant increase in licencing fees for satellite internet service providers (ISPs) like Starlink, sparking concerns about the potential impact on the growth of high-speed internet access in underserved and remote areas. The proposed regulations would raise the cost of a 15-year license from $12,302 to $115,331 – a tenfold increase – and introduce an annual levy of 0.4% of gross turnover.

The move marks a tightening of regulatory oversight, potentially raising the cost of entry, particularly for smaller companies. While local ISPs may support the move as it raises the bar for satellite competitors, the increased costs could hinder the growth of smaller internet firms and slow the expansion of high-speed internet access in underserved and remote areas. Companies like Viasat, Indigo Telecom, and NTvsat, which cumulatively serve less than 1,000 subscribers, may find it difficult to absorb the new fees.

The CA stated that the change aims to ensure technology neutrality and allow investors to land signals using any technology. In addition to the license fee increase, the CA's proposal also seeks to expand the scope of satellite ISPs. Under the new guidelines, satellite providers would be allowed to operate terrestrial cables, telemetry systems, tracking facilities, and even engage in space research. This could open the door for Starlink to establish ground stations in Kenya – a move that has been delayed previously due to regulatory challenges.

Starlink, which has rapidly expanded its presence in Kenya, driven by a growing demand for high-speed internet services, has faced opposition from other ISPs. Safaricom, for instance, has over 350,000 fixed internet users via its extensive fibre cable network in the country and has asked the CA to block satellite ISPs with operations in other countries, citing security risks to the country if companies like Starlink are allowed to operate without a physical presence or partnerships with local firms.

However, Starlink's low-cost, high-speed internet has sparked a fierce battle for customers. Safaricom, for instance, has doubled the speed of its fibre internet packages in response to Starlink's growing presence. In Kenya, Starlink has resorted to promotions and cheaper packages to woo subscribers, introducing a cheaper kit and a $30.87 monthly residential plan after Safaricom increased its fibre internet speeds.

The proposed regulations have significant implications for the growth of high-speed internet access in Kenya, particularly in underserved and remote areas. While the increased fees may benefit local ISPs, they could also hinder the expansion of satellite internet services, which have the potential to bridge the digital divide in these regions. As the CA continues to review the proposal, it remains to be seen how the changes will impact the Kenyan internet landscape.

In conclusion, the proposed increase in licencing fees for satellite internet service providers in Kenya has sparked concerns about the potential impact on the growth of high-speed internet access in underserved and remote areas. As the CA continues to review the proposal, it is essential to consider the implications of the changes on the Kenyan internet landscape and ensure that they do not hinder the expansion of high-speed internet access to those who need it most.