Zimbabwe’s internet landscape is undergoing a dramatic transformation, and Liquid Intelligent Technologies (LIT), the country’s leading fixed internet provider owned by billionaire Strive Masiyiwa, is at the forefront of the change.
In a move that has sent ripples through the industry, Liquid has announced significant speed increases for its popular fibre internet packages, effectively ushering in the era of gigabit internet for residential users. This bold step comes hot on the heels of Starlink’s entry into the Zimbabwean market and the subsequent scramble by local providers to remain competitive.
The most significant upgrade affects the popular “Infinity” package, previously offering 150Mbps for US$169 per month. This package will now boast speeds of up to 1 Gbps (1000 Mbps), a tenfold increase that places Liquid firmly amongst the global leaders in residential internet speeds. The “Family Entertainment” package, currently priced at US$226, will also receive a substantial boost, jumping from 100 Mbps to 300 Mbps.
In their announcement, Liquid stated: “Starting this Friday, Fast Just Became Faster! We are delighted to announce new speeds for our packages! Enjoy lightning-fast internet with all our FibroniX packages, which are perfect for all your work, gaming, and entertainment needs.” This confident statement reflects the company’s belief in the transformative power of gigabit internet.
However, the pricing strategy has raised some eyebrows. The lower-priced Infinity package receives the more substantial speed upgrade, prompting questions about the pricing of the Family Entertainment package. One possible explanation lies in the recent approval for increased local currency tariffs. This often leads to a temporary inflation buffer in USD pricing, with the expectation of a subsequent price reduction. “That $226 price is also probably high because the company got approval to increase local currency tariff’s recently.
When they increase local currency prices, all operators in Zimbabwe price in an exchange rate run-away buffer. The expectation is that the USD price eventually settle to an amount much lower. The gymnastics of doing business in Zimbabwe,” explains an industry analyst. The promotional nature of the Infinity package’s pricing further complicates the picture. Anyone on a regular package can access the promotional pricing, but the reason why this isn’t automatic for higher-paying customers remains unclear.
The timing of Liquid’s announcement is far from coincidental. The arrival of Starlink in September this year significantly disrupted the market, forcing local providers to re-evaluate their offerings. Starlink’s competitive pricing and reliable speeds, while initially hampered by capacity issues in Harare, have undeniably put pressure on established players.
“With Starlink now at capacity and not able to take on more customers in Harare and surrounding areas, Liquid has had a make services even more appealing to its customers so they don’t get any ideas about leaving once Starlink can take more customers,” notes a source familiar with the industry.
Even TelOne and Utande have adapted, improving speeds and lowering prices to retain their customer base. Starlink’s impact has been particularly felt among high-value clients, many of whom switched to the satellite service due to its speed and reliability. However, Starlink’s technology currently caps speeds below 1 Gbps, leaving Liquid with a clear advantage in the high-speed market.
Liquid’s gigabit offering is not merely a marketing ploy; it is a strategic counter-move to Starlink’s growing popularity. By offering speeds ten times faster than Starlink’s typical service, Liquid aims to retain customers who might otherwise be tempted by the satellite internet option. This strategic positioning underscores the company’s commitment to remaining a dominant force in the Zimbabwean internet market.
The broader context reveals a significant shift in Zimbabwe’s internet market. For years, local internet service providers resisted calls for faster speeds and lower prices, citing economic constraints. Starlink’s arrival effectively debunked this argument, demonstrating the feasibility of affordable, high-speed internet. This has spurred a wave of innovation, with providers like Econet, Liquid, Utande, and even TelOne adapting their strategies to remain competitive.
However, access remains a significant challenge. Liquid’s fibre network does not yet reach all parts of Zimbabwe, leaving many reliant on slower and less reliable alternatives. While rumours of an expanded rollout in 2024 offer hope, the lack of concrete timelines leaves many potential customers feeling excluded from the benefits of this technological advancement.
The success of Liquid’s ambitious gigabit initiative will ultimately depend not only on its ability to deliver the promised speeds but also on its capacity to expand its network reach and provide truly universal access to high-speed internet across Zimbabwe.
