SpaceX’s satellite internet service, Starlink, has significantly intensified its lobbying efforts to enter the South African market. The company recently published a dedicated advocacy page on its website, titled Starlink’s Efforts in South Africa, which directly addresses consumers and counters persistent criticisms regarding its licensing bid. This move follows an aggressive January campaign where Starlink urged its local database to lobby the Independent Communications Authority of South Africa (Icasa) for regulatory reform.
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At the heart of the dispute is a “regulatory quagmire” involving Black Economic Empowerment (BEE) requirements. Current Icasa rules mandate that 30% of a licensee be owned by historically disadvantaged groups. SpaceX maintains a global policy against local equity dilution, pushing instead for Equity Equivalent Investment Programmes (EEIPs). These allow multinationals to fulfil empowerment obligations through direct investment rather than ownership.
While Communications Minister Solly Malatsi has issued a formal directive for Icasa to consider these alternatives—noting that 90% of public submissions support the change, the move has sparked a political firestorm. The parliamentary portfolio committee on communications has accused Malatsi of overstepping his authority. Meanwhile, regulatory experts warn that Icasa’s independent process for such a change could take two years or more.
Starlink’s new “myths and facts” section attempts to dismantle several hurdles:
- The Rural Pledge: Starlink has committed R500 million to connect 5,000 rural schools for free, benefiting 2.4 million learners annually, conditional upon receiving a licence.
- Compliance: The company insists it has established a local entity, Starlink South Africa, and will adhere to all local privacy and national security laws.
- Political Neutrality: Addressing concerns that service could be cut for political reasons, Starlink asserts it only suspends service when legally required, despite international critics pointing to controversial service decisions in other conflict zones.
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Starlink’s advocacy highlights South Africa’s status as a continental holdout. The service is already active in 24 African countries, including all of South Africa’s neighbours except Namibia. The company pointedly notes that while the government’s SA Connect broadband program has missed several targets, Starlink could bridge those gaps immediately.
Industry analysts suggest that while Starlink’s projected costs—roughly R950 per month with a R3,800 hardware fee—position it at the high end of the market, its true value lies in connecting remote forestry stations, game farms, and rural clinics where fibre is unviable. As SpaceX agitates for rapid reform, the pressure on South African regulators to align with regional trends continues to mount.
