Zimbabwe’s telecommunications landscape has been thrown into a frenzy as the country’s leading mobile network operator, Econet Wireless, has launched a fierce counterattack against SpaceX’s Starlink satellite internet service.
In response to Starlink’s disruptive entry into the market, Econet has unveiled a series of tantalizing unlimited data packages, priced as low as $15 per month, that include voice calls and SMS, but to selected customers only at the moment.
The move comes after Starlink’s recent launch in Zimbabwe and that has really shaken the internet service provider (ISP) industry. Several ISPs, including Tel One, Frampol Zimbabwe, and Dandemutande, have quickly partnered with Starlink to offer its high-speed satellite internet service to their customers.
Econet, however, is not willing to cede ground without a fight. The company is aggressively testing various unlimited data packages to find the optimal price point that will attract customers away from Starlink. According to leaked details, the packages being offered range from $15 to $195 per month, with varying levels of voice calls and SMS included.
| USD Price | Calls (Minutes) | SMS |
|---|---|---|
| $15 | 200 | 240 |
| $23 | 280 | 340 |
| $30 | 420 | 500 |
| $45 | 580 | 700 |
| $60 | 750 | 900 |
| $75 | 920 | 1100 |
| $98 | 1250 | 1500 |
| $158 | 1580 | 1900 |
| $195 | 1890 | 2480 |
Following Starlink’s launch, the company sent targeted messages to selected customers inviting them to participate in testing new bundles.
“Dear Customer. You have been selected to test our new bundle. Look out for a special offer notification from 289. Your participation means a lot to us,” the message read.
Within 24 hours of Starling going live in Zimbabwe, customers started receiving offers that included various bundles, showcasing a pricing strategy that significantly undercuts many existing options.
The newly introduced offers vary widely, with the most enticing packages including 200 minutes and 240 SMSs for just $15, escalating to 1890 minutes and 2480 SMSs for $195. Early responses from customers indicate a strong interest in these options, suggesting a strategic pivot towards more competitive pricing in a bid to capture market share.
As Starlink offers high-speed internet at a competitive rate, with speeds ranging from 50 Mbps to 150 Mbps for only $30to $50 per month, Econet has been forced to rethink its strategy. Their SmartBiz packages, launched just last month, have garnered positive feedback, particularly among small and medium enterprises seeking reliable connectivity.
Econet recently launched its unlimited SmartBiz data packages, designed to cater to the growing demand for reliable internet connectivity among businesses. With packages tailored for small and medium enterprises, schools, and other organisations, SmartBiz aims to provide affordable broadband solutions.
Users have reported significant benefits, with Calton Mutambi from an agribusiness stating, “With dependable internet speeds, we can monitor market prices, send information to clients, and coordinate shipments without delays. It’s empowering local businesses like ours.”
Sukoluhle Ngwenya, a business owner in Bulawayo, stated, “We’ve seen a tremendous improvement in our daily operations.”
However, with Starlink’s superior speeds, the attractiveness of SmartBiz, which starts at $45 for speeds up to 5 Mbps, is quickly fading.
Econet’s new offerings, which they are supposedly still polishing up, are seen as a way to regain control of a market that could easily tip in favour of Starlink.
“I think there would probably be a huge uptake at the price point below $25, and even at $30, there would be demand, especially among SMEs,” one industry analyst noted.
This insight underlines the importance of finding the right price point to entice a broad customer base.
To further enhance its competitive edge, Econet is leveraging the convenience of existing infrastructure. Customers can access these new bundles without needing to invest in additional hardware, unlike Starlink, which requires new equipment that costs $200 for the mini version or $350 for the standard version plus $23 for shipping. This could be a deciding factor for many users who are weighing their options.
However, the advent of Starlink and its attractive mini package, costing $30 per month, raises questions about the future viability of the SmartBiz offering, especially since it’s priced from $45 for lower speeds. Initial speed tests for Starlink have shown impressive results, with some users experiencing download speeds of up to 160 Mbps, well above the advertised range.
In response to these challenges, Econet is currently conducting an A/B test to determine the best pricing strategy for its unlimited data packages. The test includes offers that start from $15 per month, with the hope of identifying an ideal price point that balances customer demand with profitability.
“Our assumption is that Econet will look at this data and make the actual new bundle available for purchase on the *143# USSD menu and within the EcoCash app,” Techzim noted.
As the competition heats up, it’s clear that the stakes are high for all players involved. Liquid Telecom, which provides around 80% of Zimbabwe’s internet infrastructure, is also feeling the pressure. With Starlink entering the market, price adjustments across the board seem inevitable, which could force ISPs to reevaluate their business models.
For consumers, this new competition is welcome news. Zimbabwe has long been plagued by high internet costs and limited options, and the introduction of affordable and reliable data services could lead to a significant increase in internet adoption. With Econet and other ISPs racing to adjust their offerings, users can expect a wave of new choices that promise to improve their online experience.
The arrival of Starlink has undoubtedly altered the landscape of internet connectivity in Zimbabwe. As traditional ISPs adapt to this new reality, the outcome of this competition will likely define the future of internet access in the country.
