Even with IMC licensed, Starlink’s future in Zimbabwe remains unclear

I would like to remind you that the Starlink to Zimbabwe story is probably the weirdest story you will find in tech. The latest update has IMC Communications being licensed as an Internet Service Provider (ISP) in Zimbabwe by the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz). Or were they?

IMC gets licensed

The Herald broke the news that IMC had been licensed as an Internet Service Provider. Yes, you read that right, and yes, it means they were granted ‘reseller rights’ before they became an ISP.

Just a few weeks ago, IMC Managing Director Denny Marandure, in a ZTN interview, said, “We just had a meeting with Potraz, the Director General Gift… we went and met with his team and we were discussing the progress of the licensing…”

He went into what it takes to get that kind of license and then delivered the following with much gusto, quoting what the Director General of Potraz told him:

“Actually, in his words, he says it’s not a matter of if, it’s when you get your license… He said we won’t deny you a license…”

This is in line with Potraz’s goal to license as many players in the ICT sector as possible. About a month ago, we talked about how Potraz plans to license multiple operators to compete with Econet, Liquid, TelOne and every other internet provider in the country.

Turns out Denny’s confidence was warranted, IMC did indeed get a licence. The Herald reports that,

The Herald Finance and Business is reliably informed that IMC’s licence was issued by Potraz this week and confirmed through correspondence to managing director Denny Marandure.

Unfortunately,…

IMC ≠ Starlink

The excitement about this news stemmed from an assumption that IMC had a partnership with Starlink. The following statement from the President led many to make that assumption:

“I’m pleased to announce that I have approved the licensing of Starlink by POTRAZ to provide advanced internet and related digital processing services in Zimbabwe through its sole and exclusive local partner, IMC Communications (Pvt) Ltd.”

He was clear that he was calling for the licensing of Starlink. However, the implication was that the license would come with a requirement that IMC be the only reseller in Zimbabwe.

So, the question becomes: what happens if Starlink and IMC cannot come to an agreement? Would Starlink still be licensed and given the green light to work with other resellers, or would that be the end of it (ndopanoperera sarungano)?

Starlink publishes a list of all its authorised resellers, and alas, IMC is still not on that list. That is because there is no IMC-Starlink arrangement to talk about. The following interaction clearly demonstrates that to be the case:

The IMC Managing Director was asked if they had been given or if they had signed an official contract with Starlink to be the sole distributor/reseller in Zimbabwe or the region. He responded by saying:

“Starlink does not get involved in that, it’s the governments of the country. So, our government in Zimbabwe has given us the sole mandate… So, it’s coming from the Zimbabwean government and not Starlink.”

To which the interviewer asked if it meant that Starlink is not saying ‘IMC are our boys,’ and he agreed with that.

Ladies and gentlemen, that simply means they don’t have any agreement with Starlink. Their hope is probably that once they are licensed to operate as an ISP, they can strike an agreement with Starlink.

Unfortunately, there are no guarantees that will happen. We have sources familiar with the matter who wish to remain anonymous, saying IMC has been trying to get that reseller agreement, and Starlink has, in no uncertain terms, said that is not going to happen.

Still more questions

There is a lot that’s unanswered, and at this point, it looks like our hope is that Starlink gets a license directly. If it is contingent on them working with IMC, who knows if we will ever see the service legalised?

IMC is now a registered ISP. Whether that will bring Starlink to our shores remains to be seen.

That said, remember that Starlink briefly moved their expected date to service Zimbabwe to 2025. Then we saw the Ministry of ICT encourage Potraz to expedite the licensing process. Subsequently, Starlink changed the expected period of arrival back to Q3 2024.

The Minister explicitly said to expedite the licensing of Starlink, not IMC. However, with the way the deal is structured, it is possible that she meant Starlink through IMC. If that’s the case, then that could be a bummer.

However, if it’s the case that Starlink won’t work with IMC, then why did they change the dates? They must be under the impression that they will have cleared the regulatory hurdles by October 2024.

It appears Starlink is still somewhat still on track to get its own licence. The Herald says:

Further, this publication understands that Potraz is at the advanced stages of processing Starlink’s licence after the global satellite internet service firm, Starlink, paid the requisite initial application fees.

That is the only clear silver lining in this whole story. However, as you contemplate what the above means, keep this question in the back of your mind:

What happens if Starlink and IMC cannot come to an agreement? Would Starlink still be licensed and given the green light to work with other resellers, or would that be the end of it?

Starlink reseller requirements

The agreement we’re talking about hinges on IMC meeting Starlink’s requirements to be a reseller. It would have been highly irregular if Starlink had partnered with IMC back when they didn’t even exist.

So, now that the company exists and has been approved by the regulator, this might change things. It could be that IMC is fast working on meeting the reseller requirements, hence the confidence.

Starlink’s requirements should include:

Business Credentials: Applicants must provide proof of business credentials, including business registration documents, tax identification numbers, and other relevant certifications. [IMC did not have these when we first heard of them.]

Financial Stability: Resellers need to demonstrate financial stability. This could include providing financial statements, credit reports, and proof of capital reserves.

Technical Capability: Resellers must have the technical capability to support Starlink services. This includes having a knowledgeable technical support team, infrastructure to handle installations, and the ability to provide customer service.

Market Presence: A strong market presence in the intended region of operation is essential. This includes having an established customer base, distribution network, and marketing capabilities. [I see a problem for IMC here too. They literally did not exist just a couple of months ago. They couldn’t possibly have an established customer base.]

Compliance with Local Regulations: Resellers must comply with local regulatory requirements, including obtaining necessary licenses and permits to operate in the region. [IMC has checked this box.]

Infrastructure and Facilities: Having the necessary infrastructure, such as warehouses for storing Starlink kits, facilities for customer service, and logistics capabilities for distribution. [What facilities for customer service could IMC have at the moment?]

Also read:

• TelOne partners OneWeb (Starlink competitor) and looks to slash fibre and ADSL prices too
• The internet mysteriously went down during Kenyan protests, did Starlink provide refuge?
• ZOL’s Denny Marandure Joins Wicknell’s Starlink “reseller” operation, IMC