Starlink to SA? Minister's bid met with opposition

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Minister of Communication and Digital Technologies Solly Malatsi’s bid to bring Elon Musk’s Starlink to South Africa has been met with strong opposition from telecommunication authorities.

The internet satellite service – which falls under SpaceX – has not pursued a license to operate in the country. According to Musk, this is over SA’s “racist laws” like BEE, which require him to have a local shareholding in the foreign investment.

MINISTER OF COMMUNICATIONS WANTS STARLINK IN SA

In recent months, Minister of Communications and Digital Technologies Solly Malatsi voiced his plans to issue a policy directive on equity equivalent investment programmes (EEIPs) in the information and communications technology (ICT) sector.

This bid would recognise initiatives that would accelerate broadband access and attract multinationals like Starlink, which could not comply with local equity ownership requirements, i.e. BEE and the Electronic Communications Act.

The minister stated that his proposal was “permissible by law” and has “been the source of major investments in our economy” in other sectors.

Malatshi also denied claims that his proposal “undermined transformation.”

Late last year, SpaceX argued that South Africa’s BEE requirement would drive away foreign investors, who have global policies that prevent local shareholding. The company reportedly handed in a written submission to ICASA to “rethink” its BEE legislature.

Following Minister Solly Malatsi’s bid in favour of Starlink, the Portfolio Committee on Communications and Digital Technologies responded with strong opposition.

Chairman Khusela Sangoni Diko claimed that the minister was attempting to “bypass the Electronic Communications Act to appease recalcitrant business interests.”

In a statement last week, Diko declared: “Minister Malatsi should know that when it comes to transformation in the ICT sector, the law is clear on compliance and that cutting corners and circumvention is not an option — least of all to appease business interests.”

Diko pledged to “fiercely oppose” the directive, adding that the minister attempted to “undermine empowerment legislation by stealth.”

NO LICENCE TO OPERATE

According to new information, Starlink did not apply for a license to operate in South Africa, despite Elon Musk’s BEE and “racism” rant suggesting it had hindered the process.

The Independent Communications Authority of SA (ICASA) stated last month that the internet satellite company had not yet applied for a license.

Although Starlink is available in other neighbouring countries, ICASA Chairperson Mothibi Ramusi stated that licenses must be issued for potential service providers.

Ramusi told ITVWeb: “When we issue those licenses, there are specific conditions. There are issues in this country when you talk about black empowerment to the extent that there’s a 30% BEE requirement – it’s a policy.

“Our licensing process is fairly clear and one will just have to conform to the requirements. Should they decide to come through any other person, those people must have a license as well.”