The prices of the internet are likely to go up after the Communications Authority of Kenya released plans to increase licensing fees for satellite internet service providers (ISPs) like Starlink and others.
According to a proposal published by the Communications Authority of Kenya (CA) in December, Kenya plans to review the Satellite Landing Rights (SLR) licence that companies are required to obtain to set up operations locally.
This will see the price of the SLR licence increase from the current Ksh1.6 million (USD 12,500) to Ksh15 million. Furthermore, the government intends to raise the annual operating fees to Ksh4 million or 0.4 per cent of the annual gross turnover, whichever is higher.
The new pricing comes after the regulator announced plans to merge the Submarine Cable Landing Rights (SCLR) licence, which is issued to companies that lay submarine cable systems passing under the sea to the mainland, with the SLR licence, creating a new category called the Landing Rights Licence (LRL).
In addition to the initial licence fee and annual operating fee, companies will be required to pay a Ksh5,000 application fee for the licence whose term is 15 years.
This new category will attract the said charges. Kenyans may be forced to bear the burden of price changes if companies like Starlink opt to pass it on to consumers.
“This change aims to ensure technology neutrality and allow investors to land signals using any technology,” the CA stated.
The LRL licence will apply to anyone seeking to set up terrestrial cables that only transit Kenya destined to neighbouring countries, satellite hubs exclusively serving clients outside Kenya, and other satellite services like telemetry, space research and meteorological aids.
“This change aims to ensure technology neutrality and allow investors to land signals using any technology. Furthermore, this new Licence category will expand its scope to accommodate investors,” stated CA.
In addition to the license fee increase, the Authority has also proposed 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.
“Licensees should be allowed to establish satellite systems, including hub facilities, and provide satellite services, provided they comply with the geographical scope principle (at least three counties in Kenya),” the Authority stated.
