Starlink has committed to connect 5 000 South African schools if it gets a licence.
US-based low Earth orbit satellite Internet service provider Starlink has reaffirmed its commitment to South Africa, as it looks to start operating in the country.
So says Ryan D Goodnight, senior director of Starlink Market Access, in a letter addressed to trade, industry and competition minister Parks Tau on 14 June.
Goodnight’s letter to Tau comes as regulatory hurdles have resulted in Starlink not yet acquiring an operating licence from telecoms regulator the Independent Communications Authority of South Africa.
This, as South Africans have been eagerly awaiting the local launch of Starlink, which is already live in over 20 other African countries, including South Africa’s neighbours.
Under South African legislation, companies providing telecoms services must hold ECNS and ECS licences, which require at least 30% ownership by historically disadvantaged South Africans.
The Elon Musk-owned SpaceX, which operates Starlink globally, has not complied with this requirement.
The regulator earlier this year conducted hearings, as part of its mandate to develop a transparent regulatory framework with clear rules, to establish regulatory certainty for potential investors in the satellite space.
During the ICASA hearings in February, Starlink was invited to make its presentation but the company did not show up.
Communications minister Solly Malatsi last month gazetted a draft policy direction that potentially clears the way for tech billionaire South African-born Musk’s Starlink to operate locally.
Malatsi said he gazetted the draft policy direction on the role of Equity Equivalent Investment Programmes (EEIPs) in the ICT sector as a mechanism to accelerate broadband access.
The minister noted the draft policy direction seeks to provide the “much-needed” policy certainty to attract investment in the ICT sector, and specifically with regards to licensing for broadcasters, Internet service providers, mobile networks, or fixed and mobile networks.
However, Malatsi’s move was met with some criticisms, with many viewing it as South Africa bending its transformation rules to enable the licensing of Starlink.
Musk has publicly slammed SA’s transformation obligations and policies, saying they stand in the way of Starlink operating locally.
In his letter, Goodnight admits that there has been considerable public debate about the potential for Starlink in South Africa, given the recent policy directive by minister Malatsi on equity equivalents in the ICT sector.
He adds there has also been a significant amount of incorrect information published about Starlink in the media.
“In continuation of our discussions regarding our proposed Equity Equivalent Investment Programme, I wish to take a moment to reaffirm Starlink’s position,” says Goodnight.
“First and foremost, Starlink has been interested in providing high-speed Internet to South Africa since we first deployed our constellation and began service. Additionally, while it should go without saying, we are fully committed to providing service as a legally compliant company, as we do all around the world.”
Contrary to misleading claims, he states that Starlink has never sought an exemption from Broad-Based Black Economic Empowerment (B-BBEE) laws, nor has the company asked for any special treatment.
“It is unfortunate that this narrative is being perpetuated, in our view, because Starlink supports a level playing field for the entire sector, not just specific operators.
“To be clear, the only reason Starlink is not in South Africa today is because ICASA’s licence regulations stipulate that all license holders must be 30% locally-owned. As you are aware, Starlink is a global system, and we must retain sole ownership of all our subsidiaries for operational purposes.”
According to Goodnight this is true in each of the nearly 150 countries, territories and markets where Starlink is licensed and providing service today.
He notes, however, that South Africa’s Electronic Communications Act and the B-BBEE ICT Sector Code already provide multiple pathways for meeting ownership requirements, including through EEIPs.
“As you recently stated during your visit to the United States, EEIPs are already accepted and successfully implemented across most economic sectors in South Africa. This includes the pharmaceutical, manufacturing, banking and technology sectors.”
Goodnight reiterates that Microsoft, IBM, and Amazon already rely on EEIPs to meet their local ownership obligations, without sacrificing their commitment to transformation.
“The problem lies in that ICASA’s licensing regulations are not appropriately aligned with the B-BBEE ICT Sector Code. Said another way, the law already supports what ICASA’s regulations do not. This is why Starlink welcomes the recent policy directive from the minister of communications, which calls on ICASA to correct the misalignment between its licensing regulations and the underlying B-BBEE laws.”
Pledge to connect schools
According to Goodnight, if ICASA were to allow companies to utilise EEIPs, as envisioned by the B-BBEE Act, Starlink would immediately apply for its necessary licenses in South Africa and work as quickly as possible to provide high-speed Internet service across the country, especially for those who need it the most.
“Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country. This is a problem we want to help solve.
“As per our referent submission to your office, if EEIPs are recognised for individual licence holders, Starlink proposes to provide over 5 000 rural schools with fully-funded Starlink kits and service, in addition to facilitating the installation/maintenance support alongside local South African companies. Not only will this help the South African government achieve its objectives under SA Connect, but our EEIP will support local businesses and will positively impact the lives of an estimated 2.4 million schoolchildren each year, by providing access to world-class digital education.
“We sincerely appreciate your continued support of Starlink’s mission to connect the unconnected, including underserved and youth. As honorable chairperson (of the Portfolio Committee on Communications and Digital Technologies) Kusela Diko recently stated in her Newzroom Afrika interview, satellite Internet is needed as part of the mix of technologies to expand access to the hard-to-reach areas of South Africa.
“And, if the minister’s policy directive were to progress, we would be one step closer to not just providing Internet access to the general public, but also opening doors for education, opportunity, and a brighter future for millions across South Africa.”
