The Seychelles government will control the pricing of Starlink services once the company enters the local market, the Chief Executive of the Seychelles Communications Regulatory Authority (SCRA), Wilven Jean, has said.
He confirmed that SCRA will issue the company a conditional licence.
Speaking in the National Assembly on 26 February, Mr Jean said the telecommunications sector in Seychelles requires heavy investment. He described the industry as “CAPEX hungry”, meaning capital intensive.
He said SCRA recognises the scale of investment made in infrastructure. As a result, these costs influence the prices telecoms companies charge for services and products.
Seychelles currently supplies internet through undersea cables. There are three cables in operation.
Mr Jean said another factor affecting pricing is the limited market size. “In the context of Seychelles, there is the factor economies of scale, meaning when telcos are investing money in infrastructures, there are not enough consumers to recover their return on investment,” he said.
He added that companies must maintain a balance between affordable pricing and financial sustainability to remain in business.
Mr Jean also referred to provisions in the Communications Act. He said the law allows the government to promote competition in order to help reduce internet prices.
However, he said the regulator aims to ensure “healthy competition and not aggressive competition” with the entry of Starlink. SCRA has evaluated potential impacts on local telecoms companies, he added.
Mr Jean said negotiations with Starlink are ongoing and several points have already been agreed.He explained that Starlink will be required to register as a business in Seychelles. This will allow the government to collect taxes locally.
He also confirmed that price controls will be imposed. The regulator wants to prevent the company from entering the market with significantly lower prices, which he described as predatory pricing.
Mr Jean said all tariffs proposed by Starlink will require approval from SCRA. “It’s not up to them to determine their prices, this again with the aim to protect other telecoms company in Seychelles,” he said.