Starlink parent SpaceX will participate in public hearings called by communications regulator Icasa next month, the surest sign yet of the company’s intention to launch its satellite internet services in South Africa.

However, in a written submission to Icasa ahead of the hearings, SpaceX has told the regulator that it ought to rethink the rules requiring 30% shareholding by “historically disadvantaged” groups.

TechCentral has perused SpaceX’s filing, which is dated 12 November 2024. The filing is by SpaceX Internet Services South Africa (Pty) Ltd, which suggests it has set up a legal entity in South Africa for the launch of Starlink.

The US company, controlled by South African-born billionaire Elon Musk, has also set out in detail for the first time its concerns about the licensing framework in South Africa, providing clues as to why Starlink hasn’t yet been launched here – despite it being available in many other countries in Southern Africa.

And it appears, from reading the SpaceX submission, that local black shareholding requirements related to the required network and services licences are indeed what has held back its local launch.

“Under the current South African regulatory system, companies providing services directly to end users must hold I-ECNS (network) and I-ECS (service) licences, which require at least 30% shareholding by historically disadvantaged groups,” SpaceX wrote in its submission to Icasa.

Global policies

“Many foreign satellite operators, particularly those with direct-to-consumer business models, have global policies that prevent local shareholding, thus excluding them from the South African market. This holds true even when these operators are willing to comply with B-BBEE requirements and invest in initiatives that directly benefit the target communities,” the submission said.

“By aligning the licensing and ownership regulations with the ICT sector code – which recognises equity equivalent programmes as an alternative to local shareholding – Icasa could remove a significant barrier to foreign satellite operators. This would not only increase foreign investment in South Africa but would also create broader industry benefits, supporting innovation, competition and long-term growth.”

Read: Starlink in South Africa: why equity equivalence makes sense

Last October, communications minister Solly Malatsi said he would like to see equity equivalence programmes be made an option to encourage foreign investment in South Africa’s ICT sector. His remarks came just weeks after he met with representatives from Starlink and after President Cyril Ramaphosa held discussions with Musk in New York.

In its submission to Icasa, SpaceX said: “It is our view that Icasa has erred in limiting the type of contributions that may be made and should be measured for the purpose of considering whether and to what extent a licensee has met the requirements of the ICT sector code and the provisions of section 9(2)(b) [of the Electronic Communications Act (ECA)] by reference only to ownership. Empowerment as envisaged in the B-BBEE Act and the ICT sector code is far broader and contributions other than equity are acceptable,” it said.

“The ECA also offers Icasa numerous ways in which it might oblige licensees to contribute to the transformation of the sector including in the giving of undertakings and the imposition of universal service commitments. Any such licence conditions could and, in our view, should, be framed with reference to national policy goals and the best way in which to achieve them, and not only to ownership.”

Read: Musk’s new political power is making Starlink rivals nervous

SpaceX also said in its submission:

“The SpaceX/Starlink track record in other African countries speaks for itself, and it and other multinational satellite operators could make a meaningful contribution to digital transformation and achieving the SA Connect broadband targets, while also making a significant contribution to black economic empowerment.” SA Connect is the South African government’s programme to expand broadband coverage in underserviced areas.
“If Icasa persists in this requirement and in enforcing the limitations on ownership regulations, then it will have the effect of excluding international investment by emerging technologies…”
“Policy clarity on the recognition of equity equivalence schemes has long been sought by players in the ICT industry. This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access.”
“Inward investment, for example by satellite operators such as Starlink, will require some rethinking by Icasa in relation to its empowerment requirements, which are otherwise out of step with national policy and, in particular, the ICT sector code.”

Icasa on Tuesday said it will conduct public hearings on a proposed new licensing framework for satellite services on 5 and 6 February.

The hearings come after Icasa last August published a proposed new licensing framework for satellite services in the Government Gazette.

Based on that document, the regulator received 38 written representations by the deadline and a further seven after the deadline.

“As a result from the interest shown in the initiative, the authority resolved to still accept submissions post the closing date,” Icasa said.

It said it plans to develop a “transparent regulatory framework with clear rules to establish regulatory certainty for potential investors”. It will also review spectrum fees, taking also into account the increasing amount of bandwidth used by satellite systems operating in higher frequency bands.

Read: Starlink to kick off direct-to-phone satellite pilot

The regulator will also develop procedure for “registration of international space segment providers … who intend to provide a service either directly or indirectly (through existing licensed operators) to South African consumers”. – © 2025 NewsCentral Media

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