The Independent Communications Authority of South Africa (ICASA) has clarified the steps required for satellite internet providers, such as SpaceX’s Starlink, to operate legally in the country. In a notice published in the Government Gazette, ICASA addressed numerous inquiries from prospective satellite operators regarding the necessary licensing requirements.
According to ICASA, licenses for operating satellite constellations in South Africa include the Individual Electronic Communications Network Services (I-ECNS) and Individual Electronic Communications Services (I-ECS) licenses. The licensing process for the I-ECNS license begins when ICASA issues an Invitation to Apply (ITA), guided by a policy direction from the Minister, as stipulated in the Electronic Communications and Transactions Act. Conversely, applicants for the I-ECS license can proceed without a ministerial policy directive, contingent on the publication of the ITA.
When the ITA is released, it will provide essential information, including application procedures, fees, and deadlines. Should an applicant wish to obtain licenses in the absence of a policy directive or ITA, they may negotiate commercially with a current licensee for a license transfer. However, ICASA will not participate in these negotiations.
Industry insiders have indicated that transferring licenses can be costly, often exceeding R1 million per license. ICASA also highlighted the requirement for a Radio Frequency Spectrum license for entities that transmit or receive radio signals. Notably, some frequency bands, such as those used for Wi-Fi and Bluetooth, are exempt from licensing requirements, while all other bands require formal permission and incur annual fees.
Despite ICASA’s efforts to clarify the licensing framework, uncertainties persist, especially regarding previously proposed regulations mandating 30% black ownership for telecommunications service providers. These regulations, suspended since March 2021, have not been officially acted upon, leaving stakeholders uncertain about the future.
For satellite operators, ICASA has outlined three scenarios to navigate the licensing landscape. A provider wishing to engage directly with customers must secure an I-ECS, I-ECNS, and Radio Frequency Spectrum license. If they plan to operate on a wholesale basis, they will still require both the I-ECNS and Radio Frequency Spectrum licenses. Lastly, those looking to purchase and resell satellite packages from licensed providers can apply for a license exemption under standard class regulations, simplifying the process for potential resellers.
