Starlink has been no doubt a game changer in Zimbabwe’s telecommunications landscape bringing in much needed disruption including their installment option which allowed people to purchase both the mini and standard kit in installments. It now appears, that over the past couple of days Starlink have quietly withdrawn its equipment instalment plan. This move, made without any official announcement, marks a significant shift from a facility that had made the service more accessible to a wider range of Zimbabweans.

When Starlink officially launched in Zimbabwe last year, it was nothing short of a revolution. For years, Zimbabweans had become accustomed to high-priced, often subpar internet services. Companies like Liquid Home were charging as much as US$200 for a 100Mbps connection, citing high operational costs. That narrative was swiftly dismantled with Starlink’s arrival. The subsequent price wars and service upgrades from incumbent Internet Service Providers (ISPs) were a clear testament to the impact of this new player. Prices that were once defended as the lowest possible are now the standard, and innovations like Liquid Home’s Black Friday introduction of Gigabit internet are a direct consequence of the “Starlink effect.”

One of Starlink’s most lauded innovations in the Zimbabwean market was the introduction of an instalment plan for their hardware. As we reported in our previous article, “Excellent News: Starlink Now Offers Kit Instalments for as Little as US$16.67 per Month,” this was a game-changer. The arrangement was straightforward and, it seemed, a unique offering for the Zimbabwean market.

Under the now-defunct plan, customers could acquire the Starlink Mini kit through two convenient instalment options. Instead of paying the full upfront cost of US$223 (US$200 for the kit and a US$23 handling fee), they could opt for a six-month plan at US$25 per month or a nine-month plan for as little as US$16.67 per month, in addition to their monthly service fee. This significantly lowered the barrier to entry for many, especially those outside the main economic hubs of Harare and Bulawayo.

The Silent Removal of a Popular Option

It appears this popular option is no longer available. The removal was as quiet as its introduction. There was no fanfare or public statement from Starlink; the option simply vanished from their website. We were first alerted to this change by members of our online community. A quick check of the Starlink Zimbabwe website confirmed their observations. Where once there were clear instalment options, customers are now only presented with the choice to purchase the kit at the full price or to add accessories like the US$140 mesh router.

The timing of this removal is recent. We last verified the availability of the instalment plan just last week. Given that major urban centres like Harare have been at or near capacity for months, the need for constant checks had diminished.

Why the Sudden Change of Heart?

The reasons behind Starlink’s decision to pull the plug on the instalment facility are not immediately clear, but we can speculate on a few possibilities.

When the option was introduced, it was likely a strategic move to penetrate deeper into the Zimbabwean market. The initial uptake in affluent urban areas was immense, leading to a rapid saturation of capacity in Harare and Bulawayo. However, these two cities represent the lion’s share of Zimbabwe’s economic activity. Once the initial rush in these areas subsided, a lull in sales was inevitable.

The steep upfront cost of the hardware – US$223 for the Starlink Mini and US$412 for the Standard Kit including handling fees – can be a significant deterrent for potential customers in other parts of the country. Many individuals and small businesses in smaller towns and rural areas may not have the disposable income for such a large one-off payment, making more expensive but less capital-intensive mobile data packages a more viable, albeit less ideal, option. The instalment plan was likely designed to address this very issue and encourage adoption in these underserved areas.

So, why has it been withdrawn? There are a few plausible explanations:

1. Mission Accomplished? It is possible that the instalment plan was a resounding success, driving uptake in the targeted areas to a satisfactory level. While we consider this unlikely given the vastness of the untapped market, it remains a possibility.
2. Lack of Traction: Conversely, the option may not have been as popular as Starlink had hoped. The ordering process, which required some thoughtful configuration, might have been perceived as less seamless than the straightforward option of paying the full price. This could have ironically led to confusion and lost sales.
3. An Unseen Complication: It is also possible that the administrative or financial overheads associated with managing an instalment plan in the Zimbabwean context proved to be more complex than anticipated.
4. A Failed Experiment: Starlink is known for its iterative approach and willingness to experiment. The instalment plan could have been a pilot program that has now run its course. For whatever reason, the data may have suggested that the benefits did not outweigh the costs or complexities.

Interestingly, many people we have interacted with privately were surprised to learn that an instalment option even existed. This points to a potential failure in Starlink’s typical marketing strategy, which relies heavily on word-of-mouth and media coverage. It seems the message about the instalment plan did not sufficiently permeate the market.

What Are the Alternatives?

For those who were hoping to acquire a Starlink kit on credit directly from the source, this news will be a disappointment. However, all is not lost. Utande, an authorised Starlink reseller in Zimbabwe, has been offering Starlink kits on credit. This is particularly beneficial for those in areas where Starlink has reached capacity, like Harare, as resellers often have access to business-oriented “Priority” packages. It is important to note that these packages typically come with higher monthly subscription fees.

For those in areas with available capacity, the only direct option from Starlink now is to pay the full upfront cost for the hardware.

Plan B?

While the removal of the instalment plan is a setback for some, it is unlikely to significantly dent Starlink’s overall sales in Zimbabwe. Their service remains the most viable option for reliable, high-speed internet in many remote and underserved areas of the country.

Instead of instalments, Starlink might consider other models to lower the entry barrier. A leasing or rental model, where users pay a smaller, ongoing fee for the hardware and return it if they discontinue the service, could be a compelling alternative. After all, the dishes are proprietary and cannot be used with any other service.

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Frequently Asked Questions (FAQ)

Q: Has Starlink officially announced the discontinuation of their instalment plan in Zimbabwe?

A: No, there has been no official announcement from Starlink. The removal of the instalment option from their website was done quietly.

Q: What were the terms of the previous Starlink instalment plan?

A: The plan was available for the Starlink Mini kit and offered two options: a six-month plan at US$25 per month or a nine-month plan at US$16.67 per month, in addition to the monthly service fee.

Q: What is the current upfront cost of a Starlink kit in Zimbabwe?

A: The Starlink Mini kit costs US$200 plus a US$23 handling fee, for a total of US$223. The Standard Kit is US$389 plus the US$23 handling fee, totalling US$412.

Q: Are there any other ways to get a Starlink kit on credit in Zimbabwe?

A: Yes, authorised resellers like Utande offer credit options for Starlink kits, particularly for their business packages.

Q: Can I still buy a Starlink kit directly from Starlink?

A: Yes, you can still purchase a Starlink kit directly from their website, but you will have to pay the full price upfront. Availability may be limited in areas that have reached capacity, such as Harare.

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