‘Starlink entry to enhance competition in Internet service’

THE Competition and Tariff Commission of Zimbabwe (CTC) has said the entry of US satellite Internet service company Starlink in the country will ultimately enhance competition in the Internet service provider (ISP) industry.

The ISP industry is a vital cog in realising growth of the information, communication and technology (ICT) sector as Zimbabwe strives towards becoming an upper middle-income society.

CTC is a statutory body under the Ministry of Industry and Commerce and was established through the Competition Act (Chapter 14:28). Its mandate is to promote and maintain fair competition and trade practices in Zimbabwe. It administers competition policy and law and trade tariffs policies in the country.

Starlink’s entry into the country’s ICT sector is expected to help cut the cost of digital and internet services, a critical element of business processes in the digital era.

This aligns with Government policy on technology and innovation-driven growth. President Mnangagwa is on record saying that innovation, science and technology are part of the strategic pillars that anchor the Second Republic’s developmental agenda in line with Vision 2030.

A potential game-changer, Starlink’s satellite internet service is expected to bring faster, cheaper and uninterrupted connectivity in a revolutionary manner that experts predict could redefine the future of data and digital services in the country.

The satellite technology is expected to revolutionise various facets of business activity, including marketing and home. In its third quarter newsletter, CTC said there are various benefits arising from competition due to the entrance of Starlink in the provision of Internet access in Zimbabwe for businesses, the Government and the general citizenry.

It noted that affordability, quality and access are critical in driving innovation and content creation and fostering more opportunities brought through the digital economy.

“Ultimately, enhanced competition in the ISP industry is a vital cog in realising growth of the ICT sector as Zimbabwe strives towards becoming an upper middle-income society,” said CTC.

It added that competition also drives ISPs to adopt the latest technology and innovations to differentiate their services, leading to better products such as fibre-optic connections, Long Term Evolution (LTE), 5G mobile networks and satellite services.

“The entry of a new player, Starlink ushers in competition in this sector likely to lower prices thus promoting overall ICT sector growth. Increased competition often leads to lower prices as ISPs strive to attract the patronage of customers,” said CTC.

“This is crucial in a country like Zimbabwe, where high internet costs tend to be a barrier to widespread access. ISPs can offer a variety of packages targeting different income groups, allowing more people to afford internet access, especially in under-served rural areas.”