TelOne, a significant local internet service provider in Zimbabwe, has partnered with Eutelsat OneWeb, a division of the Eutelsat Group, a French company, in a calculated attempt to improve its position in the country’s online market. The purpose of this partnership is to strengthen TelOne’s product line in advance of Starlink’s projected third-quarter 2024 launch in Zimbabwe.
The news last month by Starlink that it will be starting operations in Zimbabwe sparked a lot of reactions from regional internet service providers. Because of the competitive challenges they face, existing providers have taken the proactive step of reducing their service costs in anticipation of the potential disruption created by Starlink, which is well-known for its high-speed satellite internet services.
Eutelsat OneWeb, recognized globally for its low-earth orbit satellite communications network, represents a strategic ally for TelOne. This partnership is set to enhance TelOne’s capabilities in delivering competitive and high-speed internet services to its customers.
During TelOne’s annual general meeting, CEO Lawrence Nkala highlighted the company’s readiness to embrace technological advancements to ensure affordability and accessibility of internet services. “With the entry of new players like Starlink, it’s imperative that we explore innovative solutions to remain competitive. Partnering with a reputable satellite provider like Eutelsat OneWeb enables us to enhance our service delivery substantially,” Nkala said.
The partnership involves TelOne reselling Eutelsat OneWeb’s services in Zimbabwe. While specific commercial terms are yet to be finalized, the agreement initially focuses on the distribution and delivery of satellite services. Nkala emphasized the importance of flexible pricing models to adapt to the evolving market dynamics, which will be crucial for retaining customer loyalty and staying competitive.
Despite the growing prominence of satellite internet services, Nkala reaffirmed the critical role of fiber optics in providing superior internet speeds and reliability. “Fiber remains the backbone of our broadband connectivity, providing unmatched capacity and speed compared to wireless technologies,” he stated. This highlights TelOne’s commitment to maintaining a robust network infrastructure, which includes continuous upgrades to meet the increasing demands for high-quality internet services.
The introduction of new satellite technologies by competitors like Starlink has prompted TelOne to reassess its pricing strategies. The company is prepared to adjust prices and offer promotions as needed to ensure they remain attractive to consumers without compromising on profitability. “Our goal is to attract and retain customers with competitive pricing,” Nkala added.
As reported by the Postal and Telecommunications Regulatory Authority of Zimbabwe, mobile internet and data traffic in the country have shown significant growth, increasing by nearly 25% to 58.44 petabytes in the first quarter. This surge in data consumption is driven largely by the popularity of ICT applications such as Netflix, YouTube, and various social media platforms. TelOne’s partnership with Eutelsat OneWeb is a testament to its proactive approach in adapting to market changes and its commitment to providing Zimbabweans with access to affordable, high-quality internet services.
