Local ISPs can capitalise on Starlink’s struggles with oversubscriptions and poor performance

The honeymoon period for Starlink is well and truly over. The service was launched in the country, with thousands using it and having mixed experiences.

Just last week, we spoke to two Starlink users who were dissatisfied. One described how the service was unusable in the city center of Harare, where he wanted to use it.

That said, he was complaining of 50 Mbps and occasional temporary disruptions. The specifics of his complaints didn’t sound that bad, to be honest.

Another user, a woman from the suburbs, also voiced dissatisfaction with the service. She didn’t go into detail, but her concerns seemed to echo what many have expressed on social media.

There appeared to be no rhyme or reason as to who gets a poor experience and who receives a good one. Yes, many, if not most, users are happy with their service.

The explanation seems to be that there is a pecking order, with some users receiving priority over others. The hierarchy is Residential, followed by Global and Priority Roam, with Mobile Roam users last.

It is these Mobile Roam users who are hardest hit, a consequence of their workaround to access the service before its official launch.

It makes sense that Starlink would prioritize those registered in the area over those who are roaming.

So, as users officially registered in Zimbabwe, roaming users began experiencing worsening service because they were never intended to use Starlink in that manner.

An opportunity for local ISPs

This Starlink “mess” is an answered prayer for local ISPs, and they should capitalize on it. Starlink was never meant to compete with fibre and mobile broadband, yet the fact that Zimbabweans in urban areas are flocking to the service reflects poorly on local ISPs.

Starlink may eventually improve its capacity and capture a few thousand high-value customers from local ISPs.

However, if those customers receive reliable service at reasonable prices from local ISPs before Starlink’s capacity improves, they won’t switch. Some might, but the more rational ones probably won’t.

There are really only three areas to compete on: speed, reliability, and cost. Everything else is fluff, but different people prioritize these factors differently.

Starlink disrupted the market on price and speed, to some extent. Reliability, however, is another matter.

Reliability

The honest truth is that in urban areas where mobile broadband and fibre are available, no one should need Starlink. These two options are (or should be) more reliable than satellite internet.

We experience occasional fibre cuts or mobile network disruptions, which reflect poorly on local ISPs. At one point, these disruptions were frequent, but network upgrades, especially on Econet’s network, seem to have improved reliability.

Local ISPs should promote their better reliability, especially during the rainy season—if, indeed, they are more reliable.

Note that Starlink might not be the best for video calls. Globally, users report mixed results, with some claiming it’s unusable and others experiencing minor call drops around once an hour on average.

Speed

Starlink can reach crazy high speeds, but so can fibre and even LTE. Realistically, 10 Mbps is sufficient for the majority of users. However, with Starlink offering speeds from 20 Mbps up to the hundreds, local ISPs need to respond if they have the capacity.

We saw Liquid boost speeds on its most affordable packages to 50 Mbps, which is more than enough. If you need higher speeds, you should expect to pay for them.

Econet SmartBiz’s cheapest package is capped at 5 Mbps. I’ve been using it for months, and it’s adequate. However, the experience suffers with multiple users, as expected.

Netflix recommends a minimum of 5 Mbps to stream HD video. With SmartBiz, you get about 4.7 Mbps at best, so streaming can be challenging. The problem worsens with multiple users.

Although I find it usable with multiple users (as long as no one is streaming video), SmartBiz could benefit from a higher base speed to retain users who might be tempted by faster alternatives.

As I said, 10 Mbps is a good baseline, and few would be tempted to switch to a potentially less reliable service just for an extra 10 Mbps.

Cost

Frankly, cost is the main reason people are excited about Starlink. So, I’m concerned when I hear ISP employees emphasizing their fibre or mobile broadband services’ reliability.

The reality is that Zimbabweans are trying to stretch their dollar as far as possible. A cheaper service with slightly less reliability is often a trade they’re willing to make.

If you ask Zimbabweans whether they’d prefer a $50 service with a minor drop once a month or a $30 service with a minor drop every hour, most would choose the cheaper one.

This applies to individuals and small businesses—and even some medium-sized businesses.

Local ISPs and price

Powertel’s decision to match Starlink’s $30 price was smart. However, it might not be enough since Starlink still has hype on its side. Powertel may need to sweeten the deal further, even if not by lowering the price.

This is why I think Econet could maintain the 5 Mbps cap but price it at $30 to compete with Starlink. A 10 Mbps option could then be priced at $45.

Once users sign up now, during Starlink’s oversubscription period, few will be tempted to switch back later. I say this because I’ve had a very positive experience with SmartBiz, and if there were no savings to be made by choosing Starlink, I doubt many would switch in the future.

Liquid is sticking to its $99 fibre package, likely because most of its target market consists of businesses that require fibre’s reliability and thus won’t be drawn to Starlink.

That may be true, but it would mean Liquid has no ambitions to serve the general public. I guess Liquid fibre isn’t available widely enough to justify a price war with Starlink.

However, this could mean Liquid will lose some high-net-worth clients who don’t mind the occasional five-second interruption on Starlink. It seems Liquid is willing to accept that loss.

The iron is hot

Now is the ideal time for local ISPs to win over users from Starlink. The service has faced early challenges and is oversubscribed. The public is highly aware and interested in unlimited internet packages, and local ISPs can capitalize on this while Starlink cannot.

We’ll see how local ISPs respond. Let’s hope they aren’t complacent, assuming Starlink is no longer a threat because it quickly reached capacity in Harare and a few other areas.

Econet has been testing some intriguing packages, but we’re yet to see the final products from these efforts. There have been some complaints, which we’ll address later. However, it’s a step in the right direction.

Also read:

• Starlink Removes Roam Service From African Countries
• Starlink Shuts Down Roam Customers in Zimbabwe… Harare Forced To Use Resellers Charging Much More
• Starlink Now “Sold Out” In Areas Surrounding Harare