Govt looks set to change BEE rules that may be keeping Starlink out of SA
Communication company still knocking
South African communications and digital technology minister Solly Malatsi will issue a policy direction on alternatives to the 30% equity rule in the communications industry.
The South African government looks set to change a rule that demands that global communication companies like Starlink must be 30% owned by historically disadvantaged groups if they wanted to operate in the country.
On Friday, communications minister Solly Malatsi said he will issue a policy direction that could offer alternatives to the 30% equity employment rule in the communications industry. This is thought to have held Starlink back from applying for a licence in South Africa.
Malatsi said other sectors have equity equivalent measures in place that provide an avenue for alternative ways for companies to make a contribution to South Africa's socioeconomic development.
He said clarity over equity alternatives in terms of the Electronic Communications Act (ECA) would attract increased investment in ICT and accelerate universal internet access in the country.
Malatsi noted that the policy direction will be considered urgently.
"This is in line with the Codes of Good Practice which recognise that the global nature of their operations may constrain multinationals in their ability to comply with equity ownership requirements," he said in the statement.
Game-changer
Starlink, which is owned by Elon Musk's SpaceX, is a satellite internet provider that can beam internet to almost any area of the planet through its network of low-earth-orbit satellites.
While satellite internet is not a new phenomenon, the vast Starlink satellite fleet can provide much faster and more stable connectivity than has previously been the case as the satellites are closer to earth than those used by other operators.
Starlink is viewed as a game-changer in rural communities, which have historically been difficult to connect as significant network infrastructure investments are hard to justify in low-population-density areas.
While the company is able to provide service to people with a subscription and the right hardware, most countries - including South Africa -require internet providers to register for a licence to operate legally.
Despite multiple meetings with the Independent Communications Authority of South Africa (Icasa), SpaceX has opted not to apply for a licence to operate in South Africa for years. A regulation in the ECA that requires industry players to be 30% owned by historically disadvantaged groups is thought to have been the key impediment.
New rules
While Starlink has now gone live in more than 15 African countries - including Zimbabwe, Lesotho and Botswana - South Africans have not been able to legally access the satellite internet service.
While some people were illegally exploiting a loophole that allowed them to access the service in South Africa, Starlink all but put an end to that practice in August. There have been huge expressions of political will to find a way to bring Starlink to South Africa in recent weeks.
In early September, president Cyril Ramaphosa told journalists that he was talking to Musk about investments in South Africa and the prospect of bringing Starlink into the country.
In August, Icasa said it would look into new satellite rules that would pave the way for the recognition of international satellite operators.
Malatsi's statement last week stated that greater broadband access was a key empowerment goal for the country. He added that he will also be making an announcement in the future on plans to lower the cost of smart devices that can use 4G and 5G data at a later date.
-NEWS24
On Friday, communications minister Solly Malatsi said he will issue a policy direction that could offer alternatives to the 30% equity employment rule in the communications industry. This is thought to have held Starlink back from applying for a licence in South Africa.
Malatsi said other sectors have equity equivalent measures in place that provide an avenue for alternative ways for companies to make a contribution to South Africa's socioeconomic development.
He said clarity over equity alternatives in terms of the Electronic Communications Act (ECA) would attract increased investment in ICT and accelerate universal internet access in the country.
Malatsi noted that the policy direction will be considered urgently.
"This is in line with the Codes of Good Practice which recognise that the global nature of their operations may constrain multinationals in their ability to comply with equity ownership requirements," he said in the statement.
Game-changer
Starlink, which is owned by Elon Musk's SpaceX, is a satellite internet provider that can beam internet to almost any area of the planet through its network of low-earth-orbit satellites.
While satellite internet is not a new phenomenon, the vast Starlink satellite fleet can provide much faster and more stable connectivity than has previously been the case as the satellites are closer to earth than those used by other operators.
Starlink is viewed as a game-changer in rural communities, which have historically been difficult to connect as significant network infrastructure investments are hard to justify in low-population-density areas.
While the company is able to provide service to people with a subscription and the right hardware, most countries - including South Africa -require internet providers to register for a licence to operate legally.
Despite multiple meetings with the Independent Communications Authority of South Africa (Icasa), SpaceX has opted not to apply for a licence to operate in South Africa for years. A regulation in the ECA that requires industry players to be 30% owned by historically disadvantaged groups is thought to have been the key impediment.
New rules
While Starlink has now gone live in more than 15 African countries - including Zimbabwe, Lesotho and Botswana - South Africans have not been able to legally access the satellite internet service.
While some people were illegally exploiting a loophole that allowed them to access the service in South Africa, Starlink all but put an end to that practice in August. There have been huge expressions of political will to find a way to bring Starlink to South Africa in recent weeks.
In early September, president Cyril Ramaphosa told journalists that he was talking to Musk about investments in South Africa and the prospect of bringing Starlink into the country.
In August, Icasa said it would look into new satellite rules that would pave the way for the recognition of international satellite operators.
Malatsi's statement last week stated that greater broadband access was a key empowerment goal for the country. He added that he will also be making an announcement in the future on plans to lower the cost of smart devices that can use 4G and 5G data at a later date.
-NEWS24
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