Malatsi gazettes policy direction to possibly allow Musk to operate Starlink in SA [VIDEO]

South Africa is one step closer to getting Elon Musk’s Starlink satellite internet service after Communications and Digital Technologies Minister Solly Malatsi published a policy direction to provide alternatives to pave the way for the service in the country.

The proposed policy direction was published in the Government Gazette on Friday.

Workaround BEE

It provides applicants with a workaround to rules on who can acquire a licence to provide electronic communications services or to operate an electronic communications network in the Electronic Communications Act (ECA) that require a minimum of 30% shares to be in the hands of historically disadvantaged individuals.

These regulations currently prevent companies, regardless of whether they are large international firms that typically do not sell shares to local partners, from qualifying for individual licences under the ECA, even if they can contribute to South Africa’s transformation goals through means other than traditional ownership.

“The policy direction seeks to provide the much-needed policy certainty to attract investment into the Information and Communication Technologies (ICT) sector, and specifically with regards to licensing for broadcasters, internet service providers, mobile networks, or fixed and mobile networks,” Malatsi’s spokesperson Kwena Moloto said in a statement on Friday.

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Transformation no exempt

Crucially, the statement makes it clear that new service providers, including those offering new technologies, will not be exempt from the country’s transformation obligations.

“Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa’s socio-economic development goals.

“ICASA’s [Independent Communications Authority of South Africa] regulations may continue to require 30% equity ownership by historically disadvantaged individuals but must also permit commitments envisaged by the ICT Sector Code as valid conditions for applications for individual licenses,” the statement read.

Starlink

Talks on launching Starlink in South Africa stalled earlier this year after South African-born Elon Musk and US President Donald Trump ramped up public rhetoric against policies such as BEE laws, which mandate that foreign-owned telecoms companies allocate at least 30% of local equity to historically disadvantaged groups, primarily black South Africans.

Musk claimed Starlink was barred from operating in South Africa because he is not black, an allegation South African officials refuted.

Musk not black

At an event on Wednesday, Musk repeated the rhetoric of not being granted a license because of the laws.

“[The laws) give strong preference if you’re a black South African. And so now I’m in this absurd situation where I was born in South Africa but cannot get a licence to operate in South Africa because I’m not black.”

No debate

On Wednesday, after a heated meeting with Trump, President Cyril Ramaphosa said Musk’s Starlink satellite internet service was not discussed with the US during their working lunch at the White House.

“The Starlink issue, was it part of our discussions? No. What we are able to do – and this is part of the offer that we are talking about – is create an environment for investments to take place.

“What do we want? We want US companies to come and invest in South Africa. That is the real deal for us,” Ramaphosa said.

Starlink for crime

It was renowned businessman Johann Rupert who first brought up Starlink during the open bilateral talks with Musk, standing among the media in the Oval Office.

Rupert also addressed Trump during the meeting, calling for US support in tackling crime, putting paid to the “white genocide” narrative Trump seems to believe.

He told Trump that crime is a “South African problem” and occurs everywhere.

“We have too many deaths, but it’s across the board. It’s not only white farmers. We need technological help. We need Starlink at every police station”.

Starlink in SA

This week, The Citizen reported that the government planned to offer a workaround to local black ownership laws so that Starlink can operate in the country.

The offer came at a last-minute meeting between Musk or his representatives and a delegation of South African officials travelling with Ramaphosa, according to three people familiar with the discussions.

With its wide coverage and increasing affordability, Starlink presents a chance to close the connectivity gap in rural areas while also appealing to urban users. Starlink operates thousands of low-earth orbit (LEO) satellites to provide high-speed internet globally.

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