Starlink’s satellite internet service remains blocked in South Africa due to regulatory hurdles requiring 30% black ownership. The service, operated by SpaceX’s Starlink Services, provides high-speed internet through low-orbit satellites and is seen as a potential game-changer for rural areas in South Africa, where access to reliable broadband is limited.
Starlink covers over 100 countries and territories, offering users the ability to stream content, make video calls, and work remotely. The service requires minimal setup, with users only needing to plug in the terminal and point it towards the sky. All subscription plans come with unlimited data and no long-term contracts, making it ideal for households and businesses in remote areas.
However, the Independent Communications Authority of South Africa (Icasa) has stringent regulations that prevent Starlink from launching in the country. According to the Electronic Communications Act, foreign internet providers must meet local ownership requirements, including a provision that demands 30% ownership by historically disadvantaged groups. This regulation has been extended to require 30% black ownership.
Starlink, a foreign company, faces difficulties complying with this ownership mandate, as its global business model prohibits local shareholding. The company recently withdrew from a regulatory hearing organized by Icasa, arguing that the ownership requirements are incompatible with its operations. SpaceX suggested that Icasa consider alternative policies, such as equity equivalent programs, to encourage foreign investment without forcing local ownership.
The black ownership requirement has faced criticism from political and business figures. Democratic Alliance MP Natasha Mazzone criticized the policy, claiming it holds back access to the internet in rural areas. Fund manager Piet Viljoen also questioned the logic of black empowerment laws that he believes are hindering the rollout of affordable internet to underserved communities.
Despite the criticism, the South African Presidency has expressed opposition to the idea of loosening the regulations. A spokesperson for the presidency accused Elon Musk of holding “unprogressive, racist views,” which has further complicated discussions on the matter.
Communications Minister Solly Malatsi is reportedly working with Icasa to explore possible changes to the regulations. While there is hope for a resolution, the future of Starlink’s expansion in South Africa remains uncertain.
