SA’s Starlink Standoff: It Appears a Breakthrough is on the Horizon

Remember that whole back-and-forth about Starlink trying to get licensed in South Africa, running into those BEE regulations? Well, it looks like the government’s proposed move to relax those conditions is actually going somewhere now.

Back in May, we heard about Minister Solly Malatsi’s “proposed policy direction” to relax broadband investment hurdles. At the time, there was a lot of talk, and even some pushback from groups like the EFF. But now, it seems this isn’t just a proposal floating in the air anymore.

According to a recent report, this policy review is being prioritised thanks to a significant number of public submissions. These public submissions are simply formal comments, feedback, or opinions sent in by individuals, organizations, and businesses.

So, essentially, the public told the government to reconsider because they want Starlink and its competitors licensed in the country.

And here’s the thing: the idea of allowing companies to invest in “equity-equivalent programs” (like building infrastructure or digital inclusion initiatives) instead of mandatory 30% Black ownership is gaining traction internally.

This is great news

In my opinion, this is a positive development. Companies are required to invest in the country, beyond just their own business needs, instead of requiring them to give up some ownership.

Think about it. If a company is required to contribute to data centres or ground stations, or fibre in the country, that benefits the citizens. If someone still says they don’t want all that, they want to own 30% of that company instead, they turn into the unreasonable one.

This isn’t just a win for Starlink, either. The changes, if enacted, would apply to all industry players, new and old, which could really shake up the broadband landscape in Mzansi.

The goal, as always, is to push towards the National Development Plan’s target of universal access to affordable broadband by 2030, especially in those underserved rural areas.

Believe it or not, South Africa, just like Zimbabwe, still hasn’t gotten broadband to rural areas. Only 1.7% of rural households have internet access in the country.

It seems the government is genuinely leaning towards finding a solution that balances empowerment goals with the urgent need for wider, more affordable internet access. We’ll be keeping a close eye on how this develops.