Starlink, the satellite internet service from Elon Musk’s SpaceX, is increasing prices for its mobile broadband service in Kenya, days after offering a steep discount on the required hardware. The pricing moves highlight the company’s efforts to find a sustainable business model as it rapidly expands internet access across Africa.
In an email to Kenyan customers this week, Starlink announced that the monthly cost of its “Mobile – Regional” service will jump to KES 14,000, up from the current rate of KES 7,900.
Notably, the residential package remains unchanged at KES 6,500 per month.
“As a current customer, your monthly service price will increase in 3 months, beginning 08/16/2024,” the company said. “For new customers, the price increase is effective immediately.”
The price hike comes just weeks after Starlink launched a limited-time promotion slashing the upfront cost of the installation hardware kit by 55.6% to KES 39,500 in the Kenyan market.
“SpaceX’s Starlink has an offer that applies to all of Kenya for a limited time—over 55 percent off your Starlink kit,” the company advertised on its website.
The diverging price adjustments suggest Starlink may be attempting to capitalize on lower equipment costs to drive new user adoption before raising recurring service fees.
Customers were informed they can “receive a full refund of hardware and service if your Starlink is returned within 30 days of purchase or half refund of the hardware if purchased within the last year.”
A number of Kenyans view the pricing strategy as a double-edged sword for Starlink as it aims to rapidly scale its satellite internet service across Africa, where internet penetration remains relatively low.
While discounted upfront costs could spur new subscriptions, sharply higher monthly fees risk undermining the affordability proposition that is key to reaching underserved communities.
