The government has said it is not blocking Elon Musk’s Starlink satellite communications network from operating in SA.
This follows comments by the DA saying the decision to block Starlink in SA was deplorable, though the government said the US company has not applied to do business in the country.
In a statement on Friday, communication and digital technologies minister Mondli Gungubele clarified: “The Authority [Icasa] has advised the minister that such applications have not been received from Starlink to date.”
“It is therefore not true that the government is blocking the operation of Starlink in SA. Any interested party wishing to apply for a licence, including Starlink, may through appropriate channels, approach the authority with its application and comply with the prevailing legislation in the country.”
Internet connectivity in rural areas and outside big centres such as Johannesburg, Cape Town or Durban remains limited, and building networking infrastructure in underserved areas is costly.
The DA said Starlink and other satellite providers could go a long way in connecting remote places to the internet.
DA MP Dianne Kohler Barnard says SA appears set to be one of the few African countries not to roll out Starlink.
In 2021, SpaceX, a space exploration company owned by SA-born Musk, began offering satellite-based internet services in the US and other parts of the world to connect those without access to fast 3G and 4G mobile connectivity or wired options through telephone or fibre lines. Starlink, uses satellites to connect devices on the ground.
Responding to a written reply to parliamentary questions from communications and digital technologies minister Gungubele, Kohler Barnard said: “South Africans will never receive free internet or data, and millions will continue to live with no access to technology, unless it is provided by an ANC cadre or tenderpreneur.”
Gungubele said the Independent Communications Authority of SA (Icasa), which regulates the local telecom sector — “has no information in its possession indicating that Starlink has submitted an application” either for radio frequency spectrum or an operating licence.
At the heart of the matter is ownership of telecom assets in SA.
“For Starlink to operate in SA, they require ... individual IECS/IECNS applicants or licensees to have a minimum 30% equity ownership held by persons from historically disadvantaged groups,” Kohler Barnard quoted Gungubele as saying.
To operate in SA, Starlink would therefore have to comply with those requirements.
About 20 African countries are said to have rolled out the service or are likely to do so soon. “Even our neighbours, Mozambique and Botswana are ahead of us in the rollout,” Kohler Barnard said.
“If Starlink were available in SA, children in even the most rural of areas would have access to information and learning materials, and others would be able to educate themselves beyond the constraints of formal universities or schools which millions simply cannot afford,” she added.
Andre Wills, MD of ICT research firm Africa Analysis, said the challenge for SA and many other parts of Africa “is how to cost effectively address the broadband needs of consumers or businesses who are located in rural areas that are outside mobile network coverage”.
Mobile operators and internet service providers have poured billions into expanding their networks for decades. Though MTN and Vodacom have covered more than 80% of the country with 3G and 4G infrastructure, the so-called last mile of getting to people in outlying or rural areas has proved troublesome.
Low population density make it hard to justify the economics of building network towers or laying fibreoptic cable. In the US, the Federal Communications Commission has found that more than 18-million Americans don’t have access to broadband, especially in rural areas.
“What we find is that the ideal choice in really remote areas is satellite, and there is a choice of providers,” Wills told Business Day.
“If Starlink was available in SA, that would be an option as well. But they’re not going to fundamentally change the market. They’ll just need another connectivity provider that finds a niche in the market. They’re not going to be the number 1, number 2 or number 3 — that’s pretty well covered.”
Vox, one of SA’s large technology and telecom players, has invested much of its resources in recent years to connect people in outlying areas. In addition to existing satellite services, the company has focused its fibre rollout in secondary towns in recent years.
Rival operator Telkom is also a big player in the satellite market. The state-affiliated operator has a number of bank branches, including their ATMs, connected through its satellite service.
Update: April 21 2023
This story has been updated to include comment by communication and digital technologies minister Mondli Gungubele. Business Day has yet to make contact with Starlink on the matter.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.