Kenya's Satellite ISP Fees Set to Skyrocket, Raising Concerns for Industry and Consumers

Max Carter

Max Carter

January 08, 2025 · 4 min read
Kenya's Satellite ISP Fees Set to Skyrocket, Raising Concerns for Industry and Consumers

Kenya's Communications Authority has announced a bold proposal to raise licensing fees for satellite internet providers, potentially increasing the cost of a 15-year license by 10 times. The move, aimed at tightening regulations and ensuring technology neutrality, has raised concerns within the industry about the impact on smaller satellite ISPs and consumers.

The proposed changes will require satellite internet providers like Starlink to pay significantly higher licensing fees, which could be passed on to customers. While Starlink, the largest player in the space, may be able to absorb the increased costs, smaller providers with limited customer bases may struggle to cope. This could lead to a consolidation of the industry, with larger players dominating the market.

The Communications Authority claims that the new rules will boost oversight and open up opportunities for more infrastructure development. However, critics argue that the increased fees will stifle innovation and limit access to satellite internet services, particularly in rural areas where they are most needed. Local telecoms companies, on the other hand, are likely to benefit from the new proposals, as they will face less competition from satellite ISPs.

In a related development, GT Bank has taken a significant step towards meeting Nigeria's Central Bank recapitalisation mandate. The bank's parent company, Guaranty Trust Holding Company Plc, raised ₦209 billion ($136 million) through a retail equity offer, although it fell short of its ₦369 billion ($569 million) target. The bank plans to bridge the funding gap through a second phase of fundraising, targeting foreign institutional investors.

In other news, the Central Bank of Nigeria has reported a decline in ATM transactions, with a nearly 20% drop to ₦12.21 trillion ($8 billion) in H1 2024. This trend is not unique to Nigeria, as banks globally are scaling back on ATM investments due to high operational costs and evolving customer behaviors. In Nigeria, PoS agents have filled the gap, creating a network of cash withdrawal points that are more accessible and reliable.

The CBN's recent directives, forcing banks to load ATMs with cash and capping PoS agent daily limits, may signal an attempt to rebalance the scales. However, it remains to be seen whether this will be effective in reversing the decline of ATMs. The broader question remains: Is the decline of ATMs a technological failure or a calculated shift by banks unwilling to maintain these costly infrastructures?

In the world of cryptocurrency, the World Wide Web3 tracker shows a mixed bag of performances, with Bitcoin down 5.24% and Ether down 8.89% in the past day. Solana and XRP also saw significant declines, with Solana down 9.10% and XRP down 4.22%.

Finally, several opportunities are available for startups and entrepreneurs in the tech space. The SusHi Tech Challenge 2025 is now open for applications, offering a grand prize of JPY10 million ($65,000) and business support for collaborations with government agencies and other organizations. The CcHub-Mastercard Foundation Edtech Fellowship 2025 is also accepting applications, offering $100,000 in equity-free funding and expert mentorship to African edtech startups. Additionally, Triggerfish and UNESCO are offering free training and mentorship for African women in animation through the Creator Labs program.

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