Starlink, the satellite internet provider owned by Elon Musk’s SpaceX, could soon expand its services to South Africa, thanks to upcoming regulatory changes, Cape {town} Etc reports.
These adjustments, anticipated to be finalised by mid-2025, may clear the way for Starlink to legally operate in the country, where it has been eyeing entry for some time.
The Department of Communication and Digital Technologies (DCDT) revealed that it plans to introduce new rules under the Electronic Communications Act, which governs sectors like telecommunications and broadcasting. One of the key obstacles for companies like Starlink has been South Africa’s requirement for applicants to hold at least 30% ownership by historically disadvantaged groups, a provision designed to boost local economic empowerment.
While Starlink has yet to formally apply for a licence in South Africa, it has engaged in multiple discussions with the Independent Communications Authority of South Africa (Icasa) and has launched services in several neighbouring African countries, including Zimbabwe, Botswana, and Mozambique. Despite this regional success, Starlink has not been able to roll out its services in South Africa, largely due to the Black Economic Empowerment (BEE) requirements tied to licensing.
The 30% BEE ownership rule is viewed as one of the primary hurdles, though Starlink has not publicly confirmed this as a reason for their delay in applying for a licence. In response to this challenge, DCDT Minister Solly Malatsi announced plans in October to amend the BEE rules. Rather than removing the requirement entirely, Malatsi proposed introducing an ‘equity equivalence’ system, which would allow companies to contribute to South Africa’s socio-economic development in other ways, such as through donations or initiatives aimed at benefiting underserved communities.
The proposed policy could potentially open the door for Starlink to operate in South Africa by allowing the company to engage in initiatives like providing internet access to rural schools, rather than directly fulfilling the ownership requirement. This system has been used in other sectors and might be applied to the ICT space to facilitate Starlink’s entry without the company needing to meet traditional BEE ownership demands.
A spokesperson for the DCDT outlined the next steps, saying that a notice would be published in the Government Gazette early next year to invite public comment on the policy direction. The finalized policy is expected to be issued by mid-2025, though the spokesperson cautioned that the consultation process could face delays due to the complexity of the ICT sector.
In addition to the policy changes, Icasa has also been working on revising the licensing framework for satellite services in South Africa. This comes after the growing role of satellite technology in providing broadband access to remote areas, where traditional infrastructure is difficult and expensive to deploy. Icasa plans to publish a final decision on these new rules in 2025, which could further pave the way for Starlink’s entry into the South African market.
The potential for Starlink to begin operating in South Africa has also garnered political support. President Cyril Ramaphosa met with Elon Musk in New York in September, signalling the government’s interest in attracting foreign investment in South Africa’s technology and broadband sectors.
If Starlink is eventually granted the necessary licensing, its satellite-based internet service could have a transformative impact on South Africa’s connectivity landscape, particularly in rural and underserved areas where traditional broadband services have been limited. With minimal infrastructure requirements and a network of low-Earth orbit satellites, Starlink could provide high-speed internet to areas that have long been overlooked by conventional internet service providers.
As the regulatory landscape continues to evolve, it remains to be seen whether the anticipated policy changes will be enough to bring Starlink’s satellite internet to South Africa by 2025. However, the increasing recognition of satellite broadband’s potential to revolutionise internet access is a promising sign for the future of digital connectivity in the country.
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