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Competitors are slashing prices to compete with Starlink in Zimbabwe

by Eucharia Egwuma
October 25, 2024
in Tech
Reading Time: 2 mins read
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Competitors are slashing prices to compete with Starlink in Zimbabwe
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Reports indicate that Zimbabwe’s Internet market is undergoing a significant transformation with the arrival of Elon Musk’s Starlink, as local Internet service providers (ISPs) slash prices to compete with the high-speed satellite Internet provider.

The company, which delivers broadband via a constellation of satellites, has quickly gained traction in Zimbabwe, where its terminals sold out in Harare just two months after the company announced the kits’ availability in early September 2024 after obtaining regulatory approval in May 2024.

This rapid uptake mirrors Starlink’s success in Nigeria, the only African country where the service has sold out in key cities like Lagos and Abuja.
The surge in demand has led Zimbabwean consumers to bypass local resellers, who once charged exorbitant prices for the kits, and instead order directly from the company’s website.

In response to Starlink’s entry, Zimbabwean ISPs have been forced to reduce their prices to retain customers.

The satellite Internet provider’s competitive edge lies in its ability to deliver fast, reliable Internet to underserved areas, a challenge that traditional ISPs in Zimbabwe have struggled to meet.

The entry of Starlink threatens to disrupt the market, as its satellite Internet services offer a compelling alternative to existing options.

Zimbabwe’s Internet market has long been dominated by a few key players, but the launch of a SpaceX-operated Internet service introduces new competition.

Starlink is poised to become a major player in Africa, beginning with Zimbabwe and Nigeria. The company’s capacity to provide high-speed Internet, even in remote locations, presents a strong appeal to consumers frustrated by inconsistent service from traditional providers.

Since SpaceX began deploying its constellation of satellites in 2019, the company has revolutionised the broadband industry.

Its success in Zimbabwe is part of a larger trend in Africa, where digital infrastructure has lagged, and access to reliable Internet remains challenging for millions.

While Starlink’s services remain unavailable in neighbouring South Africa, Elon Musk recently confirmed that the service is “waiting for regulatory approval.” If introduced, the satellite Internet service is expected to enhance the Southern African telecommunications landscape. For Zimbabweans, the arrival of Starlink marks a new chapter in the nation’s connectivity, providing a much-needed alternative to traditional ISPs and igniting price competition that benefits consumers.

As the company scales its operations, the broader impact on the region’s digital transformation remains to be seen.

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