The Communications Authority of Kenya (CA) has unveiled plans to significantly increase licensing fees for satellite communication service providers, including major players like Starlink, the American satellite internet giant.
Key changes include a sharp rise in the cost of Satellite Landing Rights (SLR) licenses and the introduction of annual operating fees, signaling a pivotal shift in Kenya’s regulatory landscape for telecommunications.
Proposed Fee Structure
The initial cost for SLR licenses will increase from $12,500 (approximately KSh 1.6 million) to KSh 15 million under the new framework. In addition to this, providers will be required to pay an annual operating fee of KSh 4 million or 0.4% of their annual gross turnover, whichever is higher.
Integration of Licenses
The CA has also proposed merging the existing Submarine Cable Landing Rights (SCLR) license with the SLR license to create a new category, the Landing Rights License (LRL). This new license will cover:
- Terrestrial cables transiting through Kenya
- Satellite hubs serving clients exclusively outside Kenya
- Other satellite services such as telemetry, space research, and meteorological systems
The LRL will be technology-neutral, allowing companies to use any signal transmission method. The application fee is set at KSh 5,000, with the license valid for 15 years.
Justification and Goals
The regulator explained that these changes aim to address barriers to market entry and streamline operations for satellite service providers.
“This review is designed to eliminate certain market entry and operational barriers identified over time,” the CA noted, adding that the broader scope of the LRL will attract more investors and foster technology-neutral operations.
Industry Impact and Concerns
The proposed changes, part of the Review of the Telecommunications Market Structure 2024, have sparked industry-wide debate. Safaricom and other local providers have voiced concerns over the potential disruption caused by satellite internet services to Kenya’s existing telecommunications market.
Public comments on the proposals are being accepted until January 23, 2025. If implemented, the new regulations are set to take effect in the 2025/2026 financial year.
A Reshaped Telecommunications Landscape
As Kenya positions itself for a more inclusive and robust telecommunications framework, these proposals are likely to reshape the satellite communication landscape. Industry stakeholders and public feedback will play a critical role in determining the final form of these regulations.
Stay tuned for updates as Kenya’s satellite licensing reforms unfold.
