Starlink – the satellite service owned by Elon Musk’s aerospace company SpaceX – is at the centre of a licensing impasse in South Africa. But while this is a critical legal dispute peppered with politics, an important question is whether South Africa really needs the technology that such low Earth orbit (LEO) satellites bring.
LEOs operate closer to the Earth’s surface than other satellites and can link multiple satellites to offer more speed, greater quality of imaging and less latency.
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So, as a LEO satellite system, is Starlink instrumental to South Africa’s ambitious SA Connect programme that seeks to achieve 100 per cent broadband access by 2030? Broadband and satellite connections are not mutually exclusive – internet service providers often use satellite services to extend their networks in remote areas, or to provide backup to maintain supply continuity.
And what is the strategic cost of having a foreign service in South Africa, such as Starlink, which has shown close ties to the United States (US) defence and intelligence? Starlink is also becoming an important geopolitical player by supplying services to track missiles, drones and shipping traffic in the world’s deadliest war zones.
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Both questions involve a trade-off. Starlink’s South African billionaire owner, Mr Musk, has made it clear that he wants to own the entire satellite value chain rather than partner with local providers, as other technology companies like Amazon and Microsoft have done.
Moreover, Mr Musk and his supporters have positioned Starlink as critical to South Africa’s development goals. They promise that, in return for a contract that doesn’t force him to relinquish 30 per cent ownership to historically disadvantaged communities, Starlink will connect 5,000 rural schools with free internet.
The Independent Communications Authority of South Africa (ICASA) has resisted calls to review its ownership regulations and consider alternatives. The Electronic Communications Act 2005 (ECT Act) requires licensees to observe a 30 per cent equity rule. Agreeing to alternatives would bring ICASA into line with the Broad-Based Black Economic Empowerment Act 2003, which considers options besides the 30 per cent ownership rule.
For those championing a licensing regime change, including the Democratic Alliance’s Communications and Digital Technologies Minister Solly Malatsi, a skills transfer investment would encourage investors and advance South Africa’s National Development Plan 2030 goals.
Such equity equivalent investments can also be more impactful, say its supporters, in delivering what the United Nations Educational, Scientific and Cultural Organisation describes as ‘meaningful connectivity.’ This includes issues like affordability, quality, skills and security.
In light of ICASA’s position on Starlink, Malatsi is pushing for an amendment to the ECT Act. However, that would probably take years to achieve and may find little political support, given that the issue is so polarising. South Africa is also heading for local government elections in November, so significant political posturing around B-BBEE can be expected. Exceptions would unlikely be considered at this time.
Mr Musk is a hugely divisive figure given his close association with US President Donald Trump and far-right movements, and through his apparent willingness to support state surveillance culture. Already, Starlink’s Starshield technology enables it to intercept communications and spy on targets as part of the US’s defence and national security system. This may leave South African lawmakers uncomfortable with rolling out the red carpet for Starlink.
But away from geopolitics is another fundamental question: does South Africa need Starlink? Such LEOs bypass terrestrial technologies such as cellphone towers, but can also supplement and boost broadband services. Many more of our devices, such as phones and TVs, will likely link directly to satellites in future.
Starlink is not the only kid on the block; there are viable alternatives, including China’s Qianfan. But Starlink is ahead of the game. Also, its power to develop the space ecosystem, including the capacity to launch multiple satellites (a pre-requisite for LEO technologies), along with its financial might, sets it apart.
Indeed, an internal report from an exercise that the Association for Progressive Communications and partners recently carried out, involving South African policy experts, civil society and lawmakers, provided thought-provoking debates. Participants said that given the government’s commitment to greater connectivity for all, satellite services like Starlink were ‘uniquely suited to deliver connectivity.’
Internet governance expert Anriette Esterhuysen, who helped organise the event, says many rural and low-income areas of South Africa still lack affordable, reliable internet access. And despite government efforts to address this, ‘delivery has not matched the ambition to secure greater connectivity.’ Also, data costs impede access.
But ‘Starlink will not necessarily push data costs down; we actually need local providers,’ Ms Esterhuysen says. She advocates using existing broadband capacity better and involving local providers to make it more efficient.
Starlink currently operates in at least 25 African countries, according to The Africa Report, and the pros and cons in each are context-specific. In some rural areas where laying cable may not be feasible, Starlink’s services are ‘a potential game changer,’ argues Ellipsis regulatory expert Dominic Cull.
South Africans must confront several key questions. At what point do politics and a politically divisive figure need to be set aside for development? How do regulatory frameworks become more agile as new technologies and industries emerge? Have African countries using Starlink ‘sold out’, or has pragmatism and economic imperative won the day?
Karen Allen is a Consultant at the Institute for Security Studies (ISS) in Pretoria.
(This article was first published by ISS Today, a Premium Times syndication partner. We have their permission to republish).
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