According to industry reports, SpaceX, the parent company of Starlink, has expressed its intent to launch satellite internet services in South Africa by participating in upcoming public hearings hosted by the communications regulator, Icasa, next month. This marks a significant step towards the introduction of Starlink in the region.
In a written submission dated November 12, 2024, SpaceX Internet Services South Africa (Pty) Ltd made a case for Icasa to reevaluate its current requirement for a 30% shareholding by “historically disadvantaged” groups. The company argues that maintaining this rule could deter international investment in South Africa’s telecommunications market.
SpaceX highlighted its concerns regarding South Africa’s licensing framework, which it believes has been a barrier to its local launch, especially since similar services are already available in various neighbouring countries. According to SpaceX, the existing regulations mandate that companies serving end users must acquire I-ECNS (network) and I-ECS (service) licenses—each requiring significant local black shareholding.
The submission stated, “Many foreign satellite operators, especially those with direct-to-consumer models, have policies that prevent local shareholding, which effectively bars them from entering the South African market. This holds true even when these operators are eager to comply with B-BBEE requirements and invest in community initiatives.”
SpaceX proposed that aligning the licensing and ownership regulations with the ICT sector code—recognizing equity equivalent programmes as a viable alternative to local shareholding—could break down barriers for foreign operators. This adjustment, they argue, would not only boost foreign investment but also enhance competition, innovation, and long-term growth in South Africa’s tech landscape.
In October, Communications Minister Solly Malatsi indicated support for considering equity equivalence programmes to incentivize foreign investment within the ICT sector, following discussions with Musk and Starlink representatives.
SpaceX’s submission further noted the need for Icasa to broaden its definition of contributions towards empowerment beyond ownership, stating, “The ECA provides Icasa various tools to ensure licensees contribute to sector transformation through commitments and undertakings aligned with national policy goals.”
The company believes that the success of SpaceX and other multinational satellite operators in other African markets could significantly benefit South Africa’s digital transformation and help meet the SA Connect broadband targets aimed at improving internet coverage in underserved regions.
“As long as Icasa maintains its stringent ownership regulations, foreign investment in emerging technologies will be hindered,” SpaceX cautioned. “Clarity in policy regarding equity equivalence schemes is essential for attracting increased investments and enhancing universal internet access in the country.”
Icasa has announced public hearings on a new licensing framework for satellite services scheduled for February 4 and 5, 2025.
