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(Africa) Safaricom seeks approval for Kenya’s first telco-owned submarine cable amid rising competition

Kenyan telco giant Safaricom has applied to the Communications Authority of Kenya (CA) for rights to land a submarine cable, per Business Daily. If granted, this would allow the company to construct and operate the country’s first undersea Internet cable owned by a telecommunications firm. 

The move aims to strengthen Safaricom’s ability to provide high-speed Internet, improve connectivity, and reduce dependence on third-party cable operators. It also underscores Safaricom’s commitment to meeting Kenya’s rising demand for reliable, high-speed Internet, while also ensuring it stays ahead in an increasingly digital world.

Currently, Safaricom relies on providers such as SEACOM, the East African Submarine System (EASSy), the East African Marine System (TEAMS), and Telkom Kenya for its international bandwidth. Of these, Telkom Kenya holds landing rights for five submarine cables connected to the country, including SEACOM.

This move by Safaricom comes when the region is grappling with increasing network vulnerabilities. In May 2024, two major undersea cables — EASSy and SEACOM — suffered outages, leading to widespread Internet disruptions across East Africa, including Kenya and Tanzania.These incidents forced Safaricom to acquire additional bandwidth from other providers, spurring its decision to invest in its infrastructure.

Submarine cable landing rights in Kenya are regulated by the CA, with companies required to obtain a “Submarine Cable Landing Rights Licence” to operate such infrastructure. Safaricom’s application signals its ambition to achieve greater control over its international bandwidth supply.

Safaricom’s push for independence reflects growing competition from satellite Internet providers, particularly Elon Musk’s Starlink. Since Starlink’s entry into Kenya in July 2023, the satellite provider has disrupted the market by offering high-speed Internet services, especially in remote areas. This has led to a rapid increase in satellite Internet subscriptions and challenged the dominance of traditional providers like Safaricom, which controls over 37% of the fixed Internet market.

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In response, Safaricom has expressed concerns about Starlink’s operations, arguing for regulatory measures to ensure partnerships between satellite providers and local mobile network operators.

Source: www.techpoint.africa

Victoria Fakiya

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