Starlink, the satellite internet service backed by SpaceX, is facing strong opposition in Lesotho over its licence application due to concerns about the absence of local ownership.
A local rights group, Section 2, on Tuesday raised objections, arguing that the company’s fully foreign-owned structure goes against the country’s tradition of balancing foreign investment with local participation in the telecom sector.
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Opposition to Starlink’s licence application
Section 2, a nonpartisan organisation dedicated to upholding constitutional principles and advocating national sovereignty, objected to Starlink’s licence application. The group emphasises that Starlink Lesotho is 100 percent owned by Starlink Holdings Netherlands, with all its registered directors being U.S. citizens. This structure leaves no room for Basotho ownership, either through the government or private local entities.
“We respectfully oppose the issuance of this licence to Starlink due to the complete absence of local ownership,” stated Section 2. The organisation highlights the precedent set by Econet Telecom Lesotho and Vodacom Lesotho, where local ownership is ensured through government and private stakes.
For instance, Econet Telecom Lesotho is 70 percent owned by Econet Wireless Global, but the government of Lesotho retains a 30 percent stake. Similarly, Vodacom Lesotho is 80 per cent owned by Vodacom Group, with 20 percent held by a local consortium.
Section 2 demands that Starlink allocate up to 30 per cent of its equity to the Basotho people as a condition for licensing. This mirrors the requirements in South Africa, where Elon Musk has also faced pushback over similar licensing conditions.
Lesotho citizens fear economic loss over Starlink ownership
The absence of local ownership in Starlink’s structure raises concerns about sidelining Lesotho’s citizens from the economic benefits associated with telecommunications operations.
These benefits include profit-sharing, job creation, and influence over service priorities tailored to local needs. Section 2 believes licensing Starlink without local shareholding would depart from the longstanding practice of ensuring Basotho’s participation in the sector.
The Lesotho Communications Authority is currently consulting the public on Starlink’s license application, with the deadline for comments set for March 20, 2025. The outcome of this process will determine whether Starlink can proceed with its plans to provide satellite internet services in Lesotho.