ICT minister introduces US$5000 fines for poor network from Econet, Liquid, TelOne and other ISPs as Starlink launches

Zimbabwe’s telecommunications landscape is undergoing a significant shift, with the government finally taking a firm stance against poor service delivery and introducing hefty penalties for companies failing to meet quality standards.

This comes as Elon Musk’s Starlink satellite internet service officially launches in Zimbabwe, offering a potential alternative to the country’s often unreliable terrestrial providers.

The new regulations, gazetted last Friday, see Information Communications Technology (ICT) Minister, Tatenda Mavetera, introduce a US$5 000 fine for telecommunications companies and internet service providers who fail to provide reliable services. The fines are outlined in Statutory Instrument (SI) 154 of 2024, formally known as the Postal and Telecommunications (Quality of Service) (Amendment) Regulations, 2024 (No. 1).

This move comes as a long-awaited relief for Zimbabwean consumers who have long endured unreliable internet connections, dropped calls, and frustratingly slow data speeds. The new regulations aim to hold service providers accountable for the quality of their services, ensuring that consumers finally get what they pay for.

The Postal and Regulatory Authority of Zimbabwe (POTRAZ) will be responsible for enforcing these new regulations. Performance will be assessed based on key indicators over a three-month period, including call drop rate, call setup success rate, cell availability, data service access success rate, and data services drop rate. Breaches in these areas will attract a US$200 fine per infringement.

For SMS services, the key performance indicators include SMS end-to-end delivery time and SMS delivery success rate, with breaches attracting a US$200 fine per cell in breach. Data and Internet services providers will be assessed based on speed, with fines of up to US$5,000 per infringement.

The introduction of these penalties coincides with the launch of Starlink in Zimbabwe, marking a significant moment for the country’s internet landscape. Starlink, owned by tech mogul Elon Musk, offers high-speed satellite internet, providing a potential alternative to the often unreliable terrestrial internet providers.

Starlink’s arrival in Zimbabwe comes after a three-month wait following the granting of an operating licence. The company will offer services through an approved agent, with hardware costing $350 and a $50 monthly subscription. Starlink mini will be available for $200 with a $30 monthly subscription. Unlike other African countries where Starlink offers local currency denominated pricing, customers in Zimbabwe will be charged in US dollars.

The launch of Starlink in Zimbabwe is a testament to the growing demand for reliable internet access across the continent. It also highlights the increasing competition in the telecommunications sector, forcing existing providers to improve their services and meet the expectations of their customers.

Starlink’s arrival in Zimbabwe comes after a period of regulatory challenges. In September 2023, POTRAZ announced that Starlink had applied for a licence, but later cracked down on unregistered users who were smuggling devices from neighbouring Zambia and other countries.

 Zimbabwe’s telecoms industry is also bracing for a radical shake-up as Starlink launches in Zimbabwe. Some local telecom companies have already begun to cut the price of their internet packages in an effort to stay competitive.

Liquid Intelligent Technologies, the country’s largest internet access provider with an 80% market share, has reduced its unlimited internet packages by as much as 45%. This move, according to Lorreta Songola, the regional chief commercial officer for Central Africa at Liquid Intelligent Technologies, is aimed at enhancing data affordability for Zimbabweans.

“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.”

TelOne, another major player in the Zimbabwean telecoms market, has also announced plans to introduce flexible pricing models to remain competitive. Hebert Nkala, CEO of TelOne, emphasizes the company’s commitment to internet affordability as low-earth orbit (LEO) technology 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.

TelOne, a state-owned telecommunications giant has also embarked on an ambitious expansion of its 4G LTE network. This ambitious project promises to bring faster, more reliable internet access to a wider segment of the population, potentially transforming the country’s digital landscape.

The company has already made significant progress, with 12 sites already equipped with 4G LTE technology, including key locations within Harare.

These include Budiriro, Glen Norah, Mufakose, Chitungwiza’s Unit J, Hatfield, Boka, the new Parliament building and the Harare Main Exchange, which features advanced Massive MIMO antenna technology.

“This expansion is a significant milestone for the State-owned telecoms company, which has been working to upgrade its legacy copper infrastructure and better meet the growing demand for high-speed mobile data across the country,” stated TelOne’s Acting Commercial Director, Maureen Chirambaguhwa.