BD Insider: Safaricom’s response to Starlink

In today’s midweek update, we look at:

• Safaricom’s response to Starlink 
• OpenAI’s CEO joins forces with former Apple executives for new AI device company
• Meta faces legal challenges in Kenya over content moderator layoffs

Safaricom’s response to Starlink

It’s true that competition can drive innovation and improvement. We’re seeing it play out in the case of Safaricom and Starlink. How?

Safaricom, Kenya's leading mobile operator, has significantly upgraded its fibre internet speeds in response to the growing popularity of Starlink in the Kenyan broadband market. The company has doubled the speeds of its various internet packages, offering customers faster and more reliable connectivity.

What are the changes? One of the notable changes is the increase in the 10 Mbps connection to 15 Mbps, now available at KES 3,000 ($23). Additionally, the 20 Mbps plan has been upgraded to 30 Mbps, and the 40 Mbps plan has doubled to 80 Mbps. The most significant upgrade is the 100 Mbps package, which has been increased fivefold to 500 Mbps for KES 12,500 ($97).

Safaricom has also taken a significant step by introducing gigabit speeds (1 Gbps) for KES 20,000 ($155). This makes it the first internet service provider (ISP) in Kenya to offer such high-speed connectivity.

To further enhance customer value, Safaricom has launched a family share plan. This bundled package combines mobile voice, data, SMS, and home internet into a single plan, allowing up to five family members to share the benefits. The plan offers a discount of up to 20% compared to purchasing individual plans.

Context: The introduction of these upgrades is a direct response to Starlink's entry into the Kenyan market in June 2023. Starlink has gained a significant following, with over 4,000 customers by June 2024. Its speeds can reach up to 200 Mbps, and it offers a variety of packages, including a 50 GB package for KES 1,300 ($10) and a rental option for customers who cannot afford to purchase the Starlink kit.

In an attempt to protect its market share, Safaricom has requested the Communications Authority (CA) to block independent satellite internet providers, including Starlink, from operating in Kenya. The regulator has supported Safaricom's position, acknowledging its concerns.

OpenAI’s CEO joins forces with former Apple executives for new AI device company

Sam Altman, the CEO of OpenAI, is teaming up with former Apple design guru Jony Ive and Laurene Powell Jobs, widow of Apple founder Steve Jobs, to create a new artificial intelligence device company.

The project, codenamed Tin, has been in development for over a year. The trio met through a dinner arranged by Brian Chesky, the CEO of Airbnb, who is a close friend of Altman's and a client of Ive's design firm, LoveFrom.

Ive confirmed the project in an interview, revealing that he and Altman decided to create a new device together, with Ive taking charge of the design. The startup is already valued at over $1 billion and has raised significant funding from Ive's firm, Emerson Collective, and other investors.

Zoom In: Key staffers from Apple, including Tang Tan and Evans Hankey, have joined the new company. Tan previously headed product design teams for the iPhone and Apple Watch, while Hankey succeeded Ive as Apple's design chief.

The project marks a reunion for Altman and Ive, who have both been at the forefront of technological innovation. Altman's OpenAI has been instrumental in developing groundbreaking AI models like ChatGPT, while Ive is renowned for his visionary designs at Apple.

The new AI device company is expected to compete with other tech giants in the AI space, including Google, Microsoft, and Amazon. With the combined expertise of Altman, Ive, and Powell Jobs, the company is poised to make a significant impact on the AI industry.

Meta faces legal challenges in Kenya over content moderator layoffs

Facebook’s parent company, Meta, might have some explaining to do about how they treated their content moderators in Kenya. 

The company is under legal scrutiny in Kenya over the treatment of its content moderators. A Kenyan court has ruled that Meta can be sued in the country following the dismissal of dozens of moderators by its contractor, Sama, along with allegations of poor working conditions.

Context: The decision comes after a group of content moderators sued Meta and two content moderation contractors, Sama and Majorel, for unlawful redundancy and blacklisting. The moderators were laid off after Sama, a Kenya-based firm contracted to moderate Facebook content, ended its contract with Meta.

Meta has argued that it is not incorporated in Kenya and that it outsourced its content moderation work via Sama, a U.S.-headquartered company with operations in the East African nation. However, the court has ruled that Meta can be held accountable for the actions of its contractor.

Zoom In: In addition to the layoffs, the moderators have also accused Meta and Sama of fostering an unsafe work environment and failing to address allegations of sexual harassment. Two former employees in Sama's Kenyan office claimed that managers ignored or minimised their allegations of rape against one of their colleagues.

The case against Meta has significant implications for the company's operations in Kenya and could set a precedent for other social media platforms operating in the region. The outcome of the case could also impact how Meta engages with content moderators on a global scale.