A lawmaker from South Africa said that Solly Malatsi, the country’s minister of communications, was working to sabotage the telecom regulations to pave the way for Starlink’s entry into the market.
This comes after a governmental mandate to acknowledge equity-equivalent programs in the industry in order to speed up broadband access and draw in multinational corporations that were unable to meet local equity ownership standards.
The senior politician emphasised in a statement on Monday that Malatsi is attempting to circumvent the nation’s local ownership regulations in order to please international companies, such as Elon Musk’s Starlink.
According to South Africa’s Electronic Communications Act (ECA), historically under-represented communities must own at least 30 percent of any prospective licensee in the country’s postal, broadcasting, or telecommunications industries. This circumstance has complicated Starlink’s planned launch.
Starlink seeks to bypass South Africa’s local ownership laws
In order to get around the act, SpaceX, the parent company of Starlink, wrote to ICASA, the telecommunications regulator, stating that local shareholding laws were a major obstacle and that it should reconsider the requirement of 30 percent ownership for licensees by implementing equity equivalent programs in these areas as a substitute.
To support South Africans, the satellite business proposed allocating shares equal to the ownership program. It promised to set up 8,000 satellite kits in the nation’s remote schools.
Lawmaker seeks focus towards Starlink’s alternatives
Khusela Sangoni Diko, the chairperson of the Portfolio Committee on Communications and Digital Technologies, pointed out that the minister’s attempts to circumvent the Act were an attempt to “erode hard-won transformation goals.”
“It appears these proposed directives and regulations are an attempt to undermine empowerment legislation by stealth and, should this be found to be the case, they will be fiercely opposed,” Diko added.
She cited a recent initiative by MTN, in collaboration with the American low-earth orbit (LEO) satellite company Lynk, to conduct Africa’s inaugural satellite voice conversation via a smartphone, exemplifying collaborations formed within the framework of local regulations.
“These initiatives underscore the importance of fast-tracking South Africa’s satellite programme, and that there is no need for overreliance and obsession with a single satellite provider,” Diko said.
She acknowledged the necessity to shift attention towards other Starlink rivals, highlighting that numerous satellite operators have expressed significant interest in entering the South African market in accordance with the regulations, particularly the ECA.
China’s SpaceSail to replace Starlink in South Africa
SpaceSail, a newly established Chinese-operated satellite broadband provider, is poised to become a significant competitor to Elon Musk’s Starlink, potentially launching its services in South Africa ahead of the U.S.-based company.
SpaceSail may see advantageous opportunities in South Africa, bolstered by the nation’s increasing ties with China via the BRICS alliance (Brazil, Russia, India, China, and South Africa).
The registration of eight “Spacesail” trademarks in South Africa, encompassing telecommunications, computing, scientific instruments, and technology services, indicates a strategic intention to penetrate the sector.
Chinese state-backed enterprises like Huawei and ZTE have successfully circumvented South Africa’s ownership laws, presenting a roadmap for SpaceSail.
Starlink not ready to comply with South Africa’s local ownership laws
Starlink is not attempting to comply with the ECA rule, which requires businesses to give 30 percent of their shares to historically under-represented groups, according to recent actions.
To give South Africa’s Black majority a share in the economy, which they had been denied during White-minority rule, the government introduced the legislation following the end of apartheid in 1994.
The communications minister, Solly Malatsi, is proposing alternatives for Starlink, despite the government’s long-standing stance.
Malatsi expressed his desire last year for equity equivalency programs to be offered as a substitute in order to attract foreign investment in South Africa’s ICT industry.
The communications watchdog declared that it is developing a framework for licensing and regulation that would allow satellite internet providers to operate as operators. But Starlink did not show up for the public hearing in February.
Elon Musk, Donald Trump’s conflict with South African authority complicates matter
After Elon Musk and US President Donald Trump sought public support against legislation intended to address the racial inequity caused by apartheid, the talks faltered. Since then, the administration has steadfastly refused to compromise the country’s principles and constitution in an attempt to draw in as much foreign investment as possible.
The satellite company has kept expanding throughout Africa despite the difficulties of launching in South Africa.
In March, Starlink formally began operations in the Republic of Niger, joining 17 other African countries that had already adopted the satellite internet service provider’s offerings.
This comes after a late-last-year launch in Cape Verde, Chad, Botswana, Liberia, and Zimbabwe. Mauritius, Angola, Tanzania, the Democratic Republic of the Congo, Comoros, and Seychelles are all included in its plans.