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1.0.12

Starlink Launches Rental Kits to Accelerate Market Penetration

Brian
By Brian Nzomo
- August 21, 2024
- August 21, 2024
Kenya Business news
Starlink Launches Rental Kits to Accelerate Market Penetration

Satellite internet provider, Starlink, plans to ease the acquisition of its expensive kits by allowing customers in Kenya to rent them on a monthly basis.

  • •Customers will pay for a one-time activation fee of KSh 2,700 and will subsequently be charged KSh 1,950 as monthly hardware rental fee.
  • •Subscribers will then pay monthly service plans priced at KSh 1,300 per month not constrained within a limited time frame.
  • •Starlink’s entry into Kenyan market last year was sluggish due to high cost of its hardware kit, which retailed at KSh 89,000.

The satellite internet provider owned by American billionaire Elon Musk has attempted over the last year to push down prices of its kits by introducing limited time offers. The latest offer saw the kit being sold at KSh 45,500 but it elapsed on August 14th. However, price was still too high for many average earners who are in need of alternative internet solutions.

Starlink users in Kenya are less than 5,000 but its reputation was amplified last month during anti-finance bill protests. Social media users suspected government, in collaboration with broadband internet providers, throttled the internet to suppress information.

Moreover, thrice this year, undersea cables supplying internet to various countries in Africa were damaged. It would take a couple of days for repairs to get done, but within those periods of slow or unavailable internet, many other business sectors suffered inconveniences.

The main hurdle for interested subscribers, however, has been expensive upfront costs of its hardware. The rental option is expected to broaden access to kits and position Starlink as an inalienable rival to traditional internet providers.

See Also;

Starlink on the Race to Cheapen Product as Kenyans Search for Alternatives

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