TelOne partners OneWeb (Starlink competitor) and looks to slash fibre and ADSL prices too

Leonard Sengere Avatar
TelOne Runhare House COVID-19

I am astounded by just how much a little competition can achieve for end-users. For years, we were told that the economic conditions in Zimbabwe were so dire that high internet access costs were inevitable.

We begrudgingly accepted it, living in the same economy and understanding the challenges. However, when Starlink seemed poised to enter Zimbabwe, our internet access providers (IAPs) suddenly started thinking outside the box.

Just over a month ago, Liquid, the largest IAP, partnered with OneWeb, one of Starlink’s biggest competitors in the low earth orbit satellite internet arena. We applauded the move, but Liquid wasn’t finished yet. Just over a week ago, they introduced more affordable unlimited packages.

It’s as if we’re living in a different Zimbabwe. Where were these initiatives pre-Starlink? Never yo mind, the good news continues. TelOne, the second-largest IAP, has joined the fray.

TelOne partners OneWeb

Last week, TelOne CEO Lawrence Nkala said,

Technology is here to stay and with the coming in of low-earth orbit (OBT) in the country, affordability of the internet is what we will want to look at.

We will partner with low-earth orbit satellite providers and TelOne this week concluded a partnership with a low-earth orbit satellite provider. We will see to it that the launch of our services will be in Q3/Q4 2024. We have partnered with Eutelsat OneWeb and the deal is basically that we will be reselling their services and we will be doing the deliveries.

OneWeb partners with businesses, allowing them to resell or distribute their products, unlike Starlink, which mostly goes it alone when possible. This partnership model is why both TelOne and Liquid chose OneWeb.

To understand what the deal means for TelOne, you can read this article about the similar partnership between Liquid and OneWeb: Liquid partners with Eutelsat to take on Starlink in the satellite internet race, let’s talk about it. The implications are the same for TelOne.

I believe TelOne will likely sign a distribution partner agreement similar to the one between Liquid and OneWeb. You might find OneWeb’s pitch to potential partners interesting, as it highlights the benefits that attracted both TelOne and Liquid.

Do you have a vision for how Eutelsat OneWeb connectivity can power your network solution? Do you have a customer base ready for low-latency, high-speed connectivity? Can you ramp up your business using APIs, automation, and self-service tools? Can you manage logistics and supply chain, and serve customers end to end? Is it time to enhance or scale connectivity for your enterprise, community, government, maritime, or aviation business?

If your answer is yes, then Eutelsat OneWeb would like to hear from you. Our channel partner program offers strength in partnership, to serve enterprise-grade broadband that you can flex to your customers’ needs, when, where, and how you want it.

As you can see, OneWeb is flexible and we may yet see our 2 IAPs integrate differently. TelOne isn’t sure just how the partnership will work out. Said Nkala,

No commercial terms have been concluded yet. We have just concluded that TelOne will be their partners in distributing their services.

Slashing prices

Just like Liquid, TelOne realised that simply partnering with OneWeb to distribute their services wouldn’t be enough. They cannot neglect their terrestrial (land-based) infrastructure and become overly reliant on OneWeb.

So, it follows that they have to reduce the prices of their fibre and ADSL packages, as Liquid did.

Remember how, for the longest time, internet providers in the country were putting on a brave face and downplaying the impact of Starlink’s potential arrival? It’s refreshing to see TelOne’s CEO being candid about the situation. Nkala stated,

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.

TelOne is well aware that the company stands at a crossroads and are facing an existential threat. They understand that if they don’t play their cards right, they could be forced out of the game. Nobody wants that.

All is well…

It appears we can look forward to lower prices all around – the very thing we’ve been crying out for all these years.

So, what happened to the supposedly insurmountable economic challenges? Last I checked, Zimbabwe is still landlocked, and Mthuli has not tweaked his exorbitant taxes. So, how are these price cuts possible?

That’s all in the past, though. I know some of you have vowed never to use Liquid or TelOne services again if you can avoid it due to the ‘years of extortion.’ That’s a bit foolish.

We are about to have multiple decent options, and you’re going to swear off some of them? Don’t be silly, just choose the one that offers the best value for you. Forget the past.

Sure, it might leave a bad taste in your mouth working with your former ‘abusers,’ but if we, as a country, can work with our former colonisers, you too can work with our IAPs.

So, my dear friends, as we said before, we all stand to benefit from Starlink’s potential arrival, whether we use their services or not. The developments mentioned above are a testament to that.

Remember, though, that the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) is set to license even more players. These new entrants don’t need as much capital to set up as before, as they can partner with companies like OneWeb and achieve 100% coverage of Zimbabwe instantly.

We’ll see what these other players bring to the table, but it can only mean good things for us as consumers.

Also read:

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35 comments

  1. Duffman

    Duffman says lots of things

    1. Marge Simpson

      Zimbabwe may adopt ZiG as sole currency before 2030 – Mnangagwa says
      https://www.newzimbabwe.com/zimbabwe-may-adopt-zig-as-sole-currency-before-2030-mnangagwa-says/

      1. Zig Marii

        Apa ndoo pakati ma1 chaiwooo

    2. Channel Links HQ

      *https://whatsapp.com/channel/0029Vaj7xFw89inhnvDgh50j*
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  2. Life No Balance

    It’s all about the good and bad things that happen, being real and honest about life’s ups and downs.
    https://whatsapp.com/channel/0029VaebuDJ6rsQrrMwO9T1S

  3. D.K.

    Who will be the better of the two locals if the technological polygamy is effected? The one will be nagging with the issue of base stations that cannot handle more capacity and the other will be nagging of not having enough resources to connect companies and residents half a kilometre or less from the exchanges and base stations. Will OneWeb be in a position to uplift them, as local leaders of polygamous affairs expect each to uplift themselves!

  4. Silence Ngulube

    We welcome starlink
    Better price

    1. Anonymous

      Starlink impact✅️✅️

  5. The Last Don

    If there’s no fine/small print between the yet to be established company IMC and StarLink about “exclusivity” then better days are coming for the data hungry Zimbabwean citizens.

    1. 🧐

      IMC iyi haisi yeku hatch wa ne Telecel here

  6. Duffman

    The idiots must be feeling the pinch of losing customers to starlink. Check how many folks are selling the kits on Facebook marketplace. https://www.facebook.com/marketplace/105977082774327/search?query=starlink

  7. Kirun

    What are you talking about because Liquid have not dropped their USD package prices . So don’t be fooled .

    1. Anonymous

      But the guys at Liquid are making lots of noises that can be interpenetrated as fear and desperation

  8. Dennis

    All we want is fast internet connectivity

  9. Andrew Richards

    Keep us posted young man you’re doing a good job

  10. SpaceX Mini

    Starlink Mini is available in Latin America as a standalone kit and service package, $200 for the kit, $35 for the service. If this sticks, we could see it rolled out in other developing regions around the world for similar pricing. I’d lost hope but this is making me optimistic again. I imagine it’s the opposite for every ISP that’s been gouging us for money since the dawn of Zim’s internet era.

    1. D.K.

      That is interesting if they have now decided to bring down the price of the Mini, as people seemed not happy with its price which was almost same as the full kit. The low subscription could also be for the specific region. With the Mini being a backpack size portable, there is also a roaming charge, depending on how you use it.

      1. SpaceX Mini

        I’m sure it’s some kind of limited rollout, but if they determine its workable, it would be good news. From what I understand, it’s being treated like a normal home setup, just for that region, so you don’t need the roaming add-on but that means the normal location restrictions apply.

    2. Speed vs Cost is What matters

      That would make sense. We are already used to poor speeds over here. So getting a device with max speeds of 100mbps⬇️/20mbps⬆️ is more than enough here. Against a fiber network that barely clocks 20mbps⬇️/5mbps⬆️. At that price it’ll be a great deal.

  11. Channel Links HQ

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  12. Dobz

    Lets hope we will get the same effect when starlink lauches its mobile phone service in this part of the world

    1. SpaceX Mini

      That will be less revolutionary because as it is now, the plan is to start providing the service through existing networks. The consumer facing aspect for Direct to Mobile might come after that. Its probably easier for them that way because of regulation and licensing headaches. Still, if Netone gets it and charges less for it, Econet would have to reciprocate through price or value so competition in some form will happen. I think Starlink itself will have competition for direct to mobile within a couple of years of launching the service.

  13. Eng. Chris Murove

    Brilliant article, I always enjoy the sound advice interspersed with wit and dry humour..

  14. Pekahia

    They should increase the customer base and provide more lines to areas where adsl is nolonger available due to infrastructure vandalism

  15. Anonymous

    It will never happen. Uncapped for 30usd? Speed 20mbps? Nothing good happens here. Only ripping off each other.

  16. Tingo ringo

    Of cause the Telecommunication cartels are in cahoots with the Government have been holding the nation at ransom. This is very common in many sectors. Delta for example, pays key people in Government, some hefty amounts of money and in return the Government protects Delta against new investors who can compete with Delta on beverages. For example Azam, a company from Tanzania was denied a license for juice drinks and beverages and only got milling license. But how Pepsi sneaked in is a misery, perhaps Pepsi managed to pay a little more from under the table and yu can how Pepsi is giving Delta a torrid time.

    So Econet is been doing the same by keeping some key people in Government people happy and in turn the Government thru Potraz maintained the status core where Econet enjoys the monopoly but squeezing the poor people. There are many Telecoms investors, including MTN who have been nocking on the Zim door to establish telecoms services. But the Government keeps benefitting from the arrangement. There have been reports of Econet loaning the Government some cash every so often. The biggest report is how Econet funded the 2013 elections. According to reports, the unit Government had no money to run the elections and when they approached UN for help, they were promised funding but with some stringent conditions, which included close monitoring. As we know, the ruling party plays some tingo-ringo with elections so they could not take the UN deal. Econet’s license which costs a cool 100 million usd was due for renewal in 2015, so the Government convinced Econet to pay the license renewal in advance, which they did. We all know what happened to the elections. That Telecoms License money is supposed to pay for development of Telecommunications, but it went to run elections and buy riot gear, leaving the poor population with poor infrastructure and expensive telecommunications service

  17. Anonymous

    A while back someone here wrote an article which said somethings about .africa tld. If you need to have a laugh about the wisdom of such tld read this:

    https://news.ycombinator.com/item?id=40899778

  18. Nyamasvisva

    I’ve put my $9 deposit down on the Starlink site. Now just hoping they reach back asap so we can finally enjoy proper service

  19. Robert Ndlovu

    This us the best thing to happen in Zimbabwe after legalization of VoIP around 2007.

    Now we can run virtual ISPs . What licence ? Satelite lice about $50 per annum.

  20. Prisca R Mudondo

    Yes l have a competitive model in mind. Start targeting residential areas for that’s where more users are now.

  21. Ts

    A tarrif decrease, without being compensated for years of outrageously priced data, is nothing to celebrate. So they were able to provide us with cheaper services, but just not willing. That shows what kind of people they are.

  22. Poor Speed

    It doesn’t help to have 500gb of data on a 5mbps speed it’ll expire before I even use 300gb how can i tale 3.33min to download 1000mb file its pathetic.

  23. Nitpik

    “Sure, it might leave a bad taste in your mouth working with your former ‘abusers,’ but if we, as a country, can work with our former colonisers, you too can work with our IAPs.”

    Comparing colonisers to ISPs. This is clumsy and inflammatory language. You can do better.

  24. Admire Kamutimbe

    Zimbos’ 🇿🇼migration to Starlink goes beyond the need for stable and reliable internet access. It’s a story about loyalty and a can-do- attitude🕺🏿 towards life’s greatest challenges. While IAPs held us hostage over the years ,Musk said he can solve our bandwidth issues. So even if current IAPs😬stoop so low or make remarks of not being scared about Starlink to persuade an average Zimbo to stay with them ,it’s gonna need them to do more than begging for majority buy-in👍🏿.

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