Starlink has taken aim at what it has described as “misleading claims” in sections of the media about its views on South Africa’s black empowerment laws and reiterated that it is keen to get an operating licence as soon as possible.
The company, which is owned by Elon Musk’s SpaceX, said in a letter to trade, industry & competition minister Parks Tau that it remains keen to invest in the country and will do so if it isn’t required to sell shares in its local licensee to South African investors.
Under current licensing rules crafted by communications regulator Icasa, Starlink would need to sell 30% of the equity in its local licensee to “historically disadvantaged persons”. However, communications minister Solly Malatsi has said he’d like to see those rules changed so that international investors that can’t sell equity in their local operations can provide “equity equivalents”, including investing in areas such as education and skills development.
Malatsi recently published a draft policy direction to Icasa in which he is seeking to give effect to the equity equivalence plan. Malatsi has, however, said that any decision to license Starlink rests with Icasa, an independent regulator, and not with his office.
The Starlink letter (PDF), which TechCentral has seen, is signed by Ryan Goodnight, senior director of market access at Starlink. TechCentral was unable immediately to verify the letter’s authenticity with Goodnight, though it was shared with this publication by a credible source.
In the letter to Tau, which is dated 14 June 2025, Goodnight wrote:
- “Starlink has been interested in providing high-speed internet to South Africa since we first deployed our constellation and began the service.”
- “We are fully committed to providing the service as a legally compliant company, as we do all around the world.”
- “Contrary to misleading claims in the media, Starlink has never sought an exemption from B-BBEE (broad-based black economic empowerment) laws, nor have we 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 licenceholders 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. This is true in each of the nearly 150 countries, territories and other markets where we are licensed and providing service today.”
Read: Karoo collision: Starlink vs science in South African skies
Goodnight said the Electronic Communications Act and the B-BBEE ICT sector code “already provide multiple pathways for meeting ownership requirements, including through EEIPs (equity equivalent investment programmes)”. Similar programmes are already in place in a range of other industries.
‘Misalignment’
“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,” he wrote.
TCS | Nomvuyiso Batyi on Starlink, BEE reform and spectrum
“If Icasa were to allow companies to utilise EEIPs, as envisioned by the B-BBEE Act, Starlink would immediately apply for its necessary licences 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,” he added.
He said Starlink will provide 5 000 rural schools with fully funded Starlink kits and service, with support. – © 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.
Don’t miss:
Malatsi insists BEE directive is not a shortcut for Starlink
