By Jonathan Mbiriyamveka
HARARE – A “strong wave of competition” in Zimbabwe’s Internet service provision space is forcing a market shake-up that analysts say will drive down prices, improve service quality and ultimately benefit millions of consumers, according to the latest report from the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ).
The entry of satellite broadband and fibre players into the market is reshaping the competitive landscape, with established operators now being forced to adjust their strategies in response to new challengers offering alternative technologies and pricing models.
In its 1st Quarter Sector Performance Report for 2026, POTRAZ Director General Dr Gift Machengete noted that “satellite broadband and fibre players [are] forcing a market adjustment that will instill efficiency in service provision, drive toward competitive pricing and enhance overall sector performance and ultimately sector growth.”
The report did not name specific operators, but the reference to satellite broadband is widely understood to include Starlink, the Elon Musk-owned satellite Internet service that has been making inroads into African markets.
The entry of such players has disrupted traditional Internet service provision, particularly in areas where terrestrial infrastructure has been limited.
The competition is already having an impact. Internet Access Providers (IAPs) saw their revenue rise by 8.09%, from ZWG 2.53 billion to ZWG 2.74 billion in the quarter under review, even as their operating costs declined.
This suggests that IAPs are benefiting from increased demand and are able to operate more efficiently.
Mobile Network Operators (MNOs), by contrast, saw revenue dip by 2.36% to ZWG 7.55 billion, though they significantly increased capital expenditure by 152% to ZWG 2.73 billion—a clear signal that they are investing heavily to defend their market position.
The entry of new competitors is also driving infrastructure rollout. The POTRAZ report noted that operators are expected to “accelerate deployment of high-capacity infrastructure, specifically rolling out LTE and next generation 5G base stations and fibre backbone expansions.”
This investment, the report said, “will go a long way in closing the digital divide and ultimately form a technological foundation needed to achieve the aspirations of Vision 2030.”
For consumers, the intensifying competition is likely to translate into more affordable data packages and better service.
Already, total Internet/data subscriptions increased by 5% to 13.9 million in the first quarter, while mobile penetration reached 108.53% and broadband penetration hit 85.83%.
The fixed Internet/data segment recorded a robust 29.39% growth in traffic, soaring to 621 Petabytes, suggesting that fibre and fixed wireless services are gaining traction among businesses and households seeking reliable high-speed connections.
The increased competition is not confined to the Internet space. The postal and courier sector also saw courier outlets increase by 8 outlets to 212, even as postal outlets declined.
Volumes rose by 11.21% to 323,759 items, indicating growing demand for logistics services—a trend likely linked to the expansion of e-commerce.
Dr Machengete’s report framed the competition as a positive development that would “instill efficiency in service provision.” This represents a shift from a market that was once dominated by a few major players to one where multiple providers with different technological approaches compete for consumers.
The challenge for regulators will be to ensure that the competitive environment remains fair and that quality-of-service standards are maintained across all providers.
The POTRAZ report suggests the authority is monitoring the situation closely and views increased competition as ultimately beneficial for sector growth.
As satellite broadband expands its footprint and fibre networks reach deeper into urban and peri-urban areas, Zimbabwean consumers are finding themselves with more choice than ever before.
In a country where Internet access was once a luxury, the emerging price war promises to make connectivity more accessible, affordable and reliable.
The winners, ultimately, will be the millions of Zimbabweans who stand to benefit from cheaper data, faster connections and greater digital inclusion.
About Author
