In Kenya, Starlink, an American satellite internet service provider, has unveiled a kit rental option.
The offer was made public last week by Starlink, the satellite division of SpaceX, the billionaire Elon Musk’s company. Consumers would be required to pay Ksh. 2,700 as a one-time activation charge.
After that, a monthly hardware rental cost of Ksh. 1,950 will be required, with monthly service plans beginning at Ksh. 1,300.
According to the firm, the leasing option provides consumers with the same internet speeds of up to 200 Mbps.
Since joining the Kenyan market in July 2023, Starlink has progressively provided faster internet and more affordable internet packages.
However, the price of its gear has turned off a lot of prospective customers.
The Starlink kit used to cost Ksh. 74,000 when it was first introduced to Kenya, but as it started to be offered at chain retail stores like Carrefour and online marketplaces like Jumia, the price decreased.
The company first offered to lower the cost of the hardware to as little as Ksh. 39,500 earlier this year. Then, last month, it offered another discount, selling the kit for Ksh. 29,000.
Along with introducing more affordable service options, Starlink has been vying with regional internet service providers like Airtel and market leader Safaricom.
For example, this month the satellite provider launched a 50 GB monthly data plan for Ksh.1,300, whereas Airtel charges Ksh.3,000 for a comparable bundle.
The 45GB monthly package offered by Safaricom costs Ksh. 2,500.