South Africa’s push to connect underserved communities to high-speed internet is running into a regulatory hurdle as Starlink seeks an alternative to rules requiring telecommunications companies to have 30% local ownership.
Representatives of Elon Musk’s SpaceX, which operates Starlink, renewed the company’s call for an alternative ownership arrangement during a public hearing by the Independent Communications Authority of South Africa (ICASA) on Wednesday.
Starlink wants South Africa to allow it to meet the country’s empowerment requirements through an Equity Equivalent Investment Programme (EEIP) rather than transferring part of its ownership to local shareholders.
The satellite internet company argues that the approach would allow it to invest directly in South African communities while maintaining its global ownership structure.
Starlink has said it cannot apply for the licences needed to launch commercially in South Africa under the current rules, which require licence holders to have at least 30% ownership by historically disadvantaged groups.
The company has argued that it must retain sole ownership of its subsidiaries for operational reasons, noting that it follows the same structure across the markets where it operates.
“Starlink has never sought an exemption from B-BBEE laws, nor have we asked for any special treatment,” Starlink Senior Director for Market Access and Development Ryan Goodnight said previously.
He said the company supports a level playing field but maintained that South Africa already has mechanisms, including EEIPs, that could allow multinational companies to contribute to the country’s transformation objectives without transferring equity.
Starlink has proposed commitments that include providing high-speed internet access to schools and supporting local communities.
The company says such investments could have a broader impact than an equity transfer that may benefit a limited number of shareholders. Starlink’s South African policy position says its proposed commitment could provide free high-speed internet to millions of learners.
But the proposal remains controversial.
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South Africa’s communications regulator has previously maintained that it cannot simply replace the existing ownership requirement with EEIPs without changes to the country’s legal framework. ICASA said in May that the Electronic Communications Act requires telecommunications licence holders to meet the 30% ownership threshold.
The dispute has consequently become a wider debate over whether South Africa should prioritise strict ownership requirements or create alternative routes that could attract major international technology investment.
For Starlink, the stakes are significant as the company is seeking access to a market where satellite internet could serve rural and poorly connected communities that traditional broadband networks struggle to reach.
Starlink says it is not currently operating commercially in South Africa because it does not have the required licences.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
