Starlink shakes Zim telecoms industry

LIVINGSTONE MARUFU

Zimbabwe’s telecoms industry is set for a  radical shake-up with the entrance of global satellite-based internet service provider Starlink ,which is set to roll out its service in  the local market in the third quarter of this year, Business Times can report.

In an effort to stay in business, some local telecom companies have cut the price of their internet packages ahead of Starlink ‘s launch.

Apparently, in Zimbabwe, Starlink kits are in high demand even before they formally open for business.

Customers, who are irritated  by what they perceive to be expensive internet costs  and poor coverage  are willing to buy them.

Its fast speed, Starlink , which is anticipated to completely transform the sector, will also be able to reach rural locations  that have not been previously unreachable.

To stay relevant, Liquid Intelligence Technologies and TelOne have teamed up with OneWeb, one of Starlink’s biggest rivals.

Lorreta Songola, the regional chief commercial officer for Central Africa at Liquid Intelligent Technologies, recently declared that the company will continue to fulfill consumer demands at reasonable costs.

“Competition is healthy  as this  would be an opportunity for Zimbabweans to enjoy competitive services and pricing from all the players in the sector,” Songola said.

“We already operate alongside StarLink in our other regional markets like Zambia, and we are all operating well,” she added.

Currently, Liquid is the largest internet access provider in the country, accounting for over 80% of the market share in terms of network capacity.

Liquid   said it has reduced the US$ unlimited internet packages by as much as 45% to  enhance data affordability to the majority of Zimbabweans.

“Liquid follows a systematic and collaborative process for developing new and innovative products and services. We are excited to offer the new packages which are a part of our annual marketing strategy review, this enables us to stay relevant and cater for market needs. We envision a digitally connected future which leaves no Zimbabwean behind,” she said.

“We have been running promotions for over a year now and these have always been influenced by our customers’ needs.”

“We carry out periodic market research where we look at issues to do with our customer’s disposable income, the array of our customers, their usage and market trends so that we come up with initiatives to stay as the market leader and ensure that we adequately serve our customers. Competition has always been there, and we embrace it because it is healthy, it helps us to better our service and continue to serve our customers well as we have been doing over the years,” Songola said.

The Family entertainment package, which was going for ZIG3054 with internet speeds of up to 100Mpbs translating to US$226 using the interbank rate of ZIG13.5 has now been slashed to US$129 translating to 43% reduction.

Liquid said under this package users can now save as much as US$97, making high-speed internet a more realistic option for users and the Modern Family package which was going ZiG4090 for 150Mpbs translating to US$303 using the interbank rate of ZiG13.5 has now been slashed to US$169, this has seen an even steeper discount of over 44%.

The Wibronix package which was going to ZiG2457 for with internet speed of up to 15Mbps translating to US$182 using the interbank rate of ZiG13.5 has now been reduced to US$89 with internet speeds of up to 20Mbps and this is ideal for smaller families or those who prioritise affordability.

The FibroniX 99 up to 75Mbps package has now been reduced to US$99. The package offers users an affordable choice.

Songola said the Liquid promotion makes high-speed internet significantly more affordable for families and SME’s with users saving up to 45%.

According to Hebert Nkala, CEO of TelOne, technology is here to stay, and the company intends to focus on internet affordability as low-earth orbit (OBT) becomes more accessible in the country.

“We will introduce flexible pricing models to remain competitive. If we need to give discounts on certain products, we will do so, so that we remain in the game.

“At the end of the day, we cannot offer prices that are below our costs, so where we do have flesh to cut in terms of pricing, then so be it.  Our goal is to attract and retain customers with competitive pricing,” Nkala said.

Local players know that they could be thrown out of  business if they don’t play their cards correctly, and they see themselves as facing an existential peril as they stand at a crossroads.