Elon Musk’s Starlink has told trade, industry & competition minister Parks Tau it will connect about 5,000 rural schools in SA as part of the benefits it says the country will accrue from having it operate in Africa’s largest economy.
In a letter to Tau, dated June 14, the company said it was committed to advancing SA’s interests.
“Today, millions of children are being denied access to education resources because SA broadband networks do not extend to the most rural parts of the country. This is a problem we want to help solve,” Ryan Goodnight, senior director of Starlink Market Access, said.
“As per our referent submission to your office, if EEIPs [equity equivalent investment programme] are recognised for individual licence holders, Starlink proposes to provide more than 5,000 rural schools with fully funded Starlink kits and service in addition to facilitating the installation/maintenance support alongside local SA companies,” he wrote.
“Not only will this help the SA government achieve its objectives under SA Connect, but our EEIP will support local businesses and will positively impact the lives of an estimated 2.4-million schoolchildren each year by providing access to world-class digital education.”
Communications minister Solly Malatsi last month gazetted a policy directive on the role of equity equivalent investment programmes in the information and communication technology (ICT) sector “as a mechanism to accelerate broadband access”.
The rules governing who can acquire a licence to provide electronic communications services or to operate a network require a minimum of 30% of shares to be in the hands of historically disadvantaged individuals.
While the government’s move is seen to be trying to address
SA-born Musk’s gripe with SA’s BEE laws, Malatsi has insisted he is not trying to open the door for Musk to start operating in SA.
The country’s BEE laws fall under Tau’s department. In his letter, Goodnight said the only stumbling block to Starlink not operating in SA was the requirement that licence holders must be 30% locally owned.
He reminded Tau that because Starlink is a global player, present in 150 countries, its strategy is to retain sole ownership of all its subsidiaries for operational purposes.
“The problem lies in that Icasa’s [Independent Communications Authority of SA] licensing regulations are not appropriately aligned with the BBBEE ICT sector code. Said another way, the law already supports what Icasa’s regulations do not,” he said.
“If Icasa were to allow companies to use EEIPs, as envisioned by the BBBEE Act, Starlink would immediately apply for its necessary licences in SA and work as quickly as possible to provide high-speed internet service across the country, especially for those who need it the most.”
Tau was part of SA’s delegation to the US, which got a dressing down from President Donald Trump — with Musk in the room as well.
Musk, the world’s richest person, has recently left the Trump administration, with the two men having a public falling out.
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