POTRAZ prohibits trade on Starlink kits without a licence amid high demand

ZIMSPHERE 

HARARE – The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has prohibited the sale of Starlink User Terminals (kits) without a licence, as the government aims to capitalize on the rising demand for the global internet service.

This decision follows the recent approval of Elon Musk's Starlink to launch its satellite internet service in Zimbabwe, sparking significant, palpable local interest due to its affordability and reliability.

In a statement on Tuesday, POTRAZ Director General Gift Kallisto Machengete emphasised that selling Starlink kits without proper licensing is illegal. 

"It is a condition of the Starlink licences that agencies, dealers, and ISPs must have clearance from POTRAZ. This applies to both current and future ISPs and Network Operators," he stated.

Starlink secured two licenses from POTRAZ at a cost of $575,000: a Network Services License for $525,000 and an ISP National License for $50,000, both valid for 20 years. The company must also pay 3.5% of gross turnover plus VAT.

While Starlink can sell directly to consumers, it may appoint local agents as resellers, subject to POTRAZ clearance, with no exclusive agreements permitted. 

In comparison, mobile operators in Zimbabwe pay $137 million for a 20-year license alongside similar turnover fees.