The long-awaited official launch of Starlink in Zimbabwe has left many unofficial resellers reeling from significant financial losses. For months, these entrepreneurs had been importing Starlink kits from neighbouring countries and selling them at inflated prices to eager Zimbabwean customers. However, with Starlink now directly available to consumers at much lower prices, these resellers find themselves stuck with expensive stock they can no longer sell.

A Long-Awaited Solution to Zimbabwe’s Internet Woes

For years, Zimbabweans have struggled with limited internet options, especially outside major urban centres. Existing providers had stagnated in terms of package offerings and often hiked prices, citing increased operational costs. For example, uncapped LTE from Liquid Home, which cost around US$80 for 15 Mbps in 2021, inexplicably jumped to US$180 in 2023. Rural areas were particularly underserved, with some Internet Service Providers (ISPs) charging as much as US$500 for a dedicated 1 Mbps line in Harare.

The Promise of Starlink

As Starlink began expanding into African countries, many Zimbabweans saw it as a potential solution to their internet woes. However, the company faced a lengthy regulatory process in Zimbabwe. During this period, opportunistic individuals seized the chance to profit from the situation.

The Rise of Unofficial Resellers

Starlink’s 60-day roaming policy allowed these enterprising individuals to purchase kits in neighbouring countries where the service was already available. They would then import these kits, which cost around US$350, and sell them in Zimbabwe for as much as US$1,500 each, generating substantial profits.

This unofficial market thrived for months, with companies, wealthy individuals, and remote entities like mines eagerly purchasing the overpriced kits. Some resellers, anticipating Starlink’s official arrival, began lowering their prices to recoup investments. However, many others, believing the government would never license Starlink, continued to import stock and charge exorbitant prices.

The Official Launch Shocks the Market

Despite scepticism from some quarters, including a curt response from POTRAZ (the telecommunications regulator) to inquiries about Starlink’s launch, the service officially went live in Zimbabwe on 6 September 2024. This sudden availability caught many resellers off guard and brought their profitable venture to an abrupt halt.

Starlink’s Official Pricing Undercuts Resellers

The official launch revealed pricing that was significantly lower than what resellers had been charging:

Standard Package:

Monthly cost: US$50
Hardware cost: US$350
Speeds up to 200 Mbps

Mini Package:

Monthly cost: US$30
Hardware cost: US$200
Speeds up to 100 Mbps

Both packages offer unlimited data, with a one-time shipping fee of US$23.

Resellers Left in a Panic

Reports indicate that unofficial resellers are now in a state of panic. Some are attempting to sell their remaining stock at cost or even below, offering flexible payment terms in a desperate bid to recoup some of their expenses. One reseller, who had purchased dozens of kits from Malawi, is now willing to sell them for as low as US$200, a far cry from the previous inflated prices.

Lessons from the Past: The Wiztech Debacle

This situation bears a striking resemblance to the Wiztech decoder incident from years ago. Before OpenView HD entered the market, sellers would import hundreds of Wiztech free-to-air decoders, allowing Zimbabweans to illegally access South African channels like eTV and SABC. When these signals were suddenly encrypted, scores of shops at Gulf Complex were left with thousands of useless decoders that became little more than paperweights.

How to Officially Order Starlink in Zimbabwe

For those interested in legitimate Starlink service, the ordering process is now straightforward:

Visit starlink.com/orders
Enter your service address
Choose your preferred hardware option (Standard or Mini)
Provide contact and payment details
Complete your order

Starlink accepts various payment methods, including credit/debit cards and even EcoCash through its Virtual Card Number (VCN) service.

Impact on Existing ISPs

While unofficial resellers face significant losses, established ISPs have had time to prepare for Starlink’s arrival. Companies like Liquid Home and TelOne have revamped their packages, reducing prices and boosting speeds. However, they still face challenges in terms of coverage, as Starlink can provide high-speed internet even in remote areas like Bulilimamangwe or Chimanimani.

Econet has also made strategic moves, recently launching their SmartBiz packages at a competitive US$45 price point and offering 5G routers for US$200.

Conclusion

The official launch of Starlink in Zimbabwe marks a significant milestone in the country’s internet landscape. While it brings affordable, high-speed internet to many Zimbabweans, it has also exposed the risks of operating in unofficial, grey markets. As the dust settles, it remains to be seen how the broader telecommunications market in Zimbabwe will adapt to this new competitor.

For consumers, the arrival of Starlink offers an exciting new option for internet connectivity. However, as always, it’s advisable to compare available services and choose the one that best fits individual needs and budgets.