The Implications of Google Loon Contract with Telkom Kenya
There is one big contract to be watching in coming months - Alphabet (owner of Google) Loon contract with Telkom Kenya. (Alphabet-owned Loon, the high-altitude balloon company uses stratospheric technology to provide internet connectivity on Earth). If the Kenyan regulators sign off on that deal, it would then mean that the game would be changing in the world of Safaricom. Despite MPESA, if the deal with Google makes internet service cheaper, a dislocation could happen. I do expect Loon to arrive Nigeria also. This will further put pressure on telcos to upgrade pricing, and helping to reach my 2022 prediction of immersive connectivity in Nigeria.
This isn’t the first time Loon has worked with Telefonica — the two joined forces to provide emergency internet connectivity following the 8.0 earthquake that hit Peru in May, and they’ve been collaborating on a number of projects for years. For Loon, this is now the third commercial contract it has secured, including one with Telkom Kenya, which is also awaiting final regulatory sign-off, and an arrangement with Canadian company Telecast to develop a coordination system for a future planned low-Earth orbit satellite constellation