Starlink in South Africa despite no licence
August 23, 2023
By Chris Forrester
SpaceX’s Starlink satellite broadband service is active in South Africa despite not having been granted an operating licence.
A licence is a considerable challenge for Starlink given that the company does not comply with South Africa’s Broad-Based Black Economic Empowerment programme (BBBEE) which is an obligation and designed to enhance the economic participation of Black people (African, Coloured and Indian people who are South African citizens) in the South African economy.
There’s also South Africa’s Electronics Communications Act (ECA) requirement that states that historically-disadvantaged groups (HDGs) must own 30 percent of a company before it can get the necessary telecoms licences to operate a broadband service locally.
Starlink could set up a subsidiary business which could satisfy regulators.
The BBBEE rules are multi-tiered and include both ownership and management levels. But the situation is also complicated by regulator ICASA now insisting that a local supplier cease selling Starlink equipment. Northern Cape-based IT Lec received a letter from ICASA last week.
“IT LEC (Pty) Ltd should, within three days of receipt of this letter, stop and refrain [from] acquiring, distributing and facilitating sale of any Starlink products in South Africa, that will in any form provide satellite access to the Starlink services,” an ICASA letter stated.
IT LEC focuses on serving rural customers and with few – if any – access to other broadband suppliers. Local reports say that it had supplied 2,600 clients with Starlink equipment. Reportedly IT LEC plans to start serving South African clients from Mozambique where Starlink is licenced and thus avoid cutting subscribers off.