South Africa and the Starlink Dilemma

Starlink, the satellite service owned by Elon Musk’s SpaceX, is caught in a licensing dispute in South Africa. This legal issue is filled with politics, but a key question is whether South Africa truly needs the services that low Earth orbit (LEO) satellites like Starlink can provide.

LEOs operate closer to Earth than traditional satellites. They can connect multiple satellites to offer faster internet, better image quality, and lower delay.

So, is Starlink essential for South Africa’s ambitious SA Connect program? This program aims for total broadband access by 2030. Satellite and broadband connections can work together. Internet providers can use satellite services to reach remote areas or as backup to ensure consistent service.

What are the risks of allowing a foreign service like Starlink in South Africa? Starlink has strong links to the US defense and intelligence sectors. It also plays a role in global conflicts by providing services to track missiles, drones, and shipping in dangerous areas.

These questions involve trade-offs. Mr Musk, Starlink's billionaire owner in South Africa, wants to control the entire satellite value chain. He does not want to partner with local companies, unlike other tech giants like Amazon and Microsoft.

Mr Musk and his team say Starlink is crucial for South Africa’s growth. They promise to connect 5,000 rural schools to free internet if they are not forced to give up 30 percent ownership to historically disadvantaged communities.

The Independent Communications Authority of South Africa (ICASA) has resisted calls to change its ownership rules. The Electronic Communications Act of 2005 requires licensees to meet a 30 percent equity requirement. Changing this would align ICASA with the Broad-Based Black Economic Empowerment Act of 2003, which allows for options beyond the 30 percent rule.

Supporters of changing the licensing rules, including Minister Solly Malatsi from the Democratic Alliance, believe that investing in skill transfers would attract investors and support South Africa's National Development Plan 2030.

These equity investments could have a meaningful impact, according to supporters. They could help achieve what the United Nations Educational, Scientific and Cultural Organisation calls ‘meaningful connectivity.’ This covers affordability, quality, skills, and security.

Given ICASA’s stance on Starlink, Malatsi is pushing for changes to the ECT Act. But this could take years and might not get much political backing, especially since the issue is divisive. Local government elections are coming in November, which means political maneuvering around B-BBEE will likely increase. Exceptions are unlikely right now.

Mr Musk is a controversial figure because of his ties to former US President Donald Trump and far-right groups. His support for state surveillance makes some South African lawmakers uneasy about welcoming Starlink.

But beyond politics, there is a basic question: does South Africa need Starlink? LEO satellites can bypass traditional connections like cellphone towers, but they can also enhance existing broadband services. Many devices, like phones and TVs, may connect directly to satellites in the future.

Starlink is not the only option. There are alternatives, like China’s Qianfan. But Starlink is currently leading. Its ability to develop the space sector, including launching multiple satellites, and its financial strength set it apart.

A recent report from the Association for Progressive Communications, which included South African policy experts and lawmakers, sparked interesting discussions. They noted that since the government aims for better connectivity, satellite services like Starlink are well-suited for this task.

Internet governance expert Anriette Esterhuysen, who helped organize the meeting, pointed out that many rural and low-income areas in South Africa still lack affordable and reliable internet. Despite government efforts, ‘delivery has not matched the ambition to secure greater connectivity.’ High data costs also limit access.

But Ms Esterhuysen said, ‘Starlink will not necessarily lower data costs; we actually need local providers.’ She suggests better use of existing broadband and involving local providers to improve efficiency.

Starlink operates in at least 25 African countries, as reported by The Africa Report. The benefits and drawbacks vary by context. In some remote areas, where laying cables is hard, Starlink’s services could be a game changer, according to regulatory expert Dominic Cull.

South Africans face important questions. When should politics and a divisive figure be set aside for progress? How can regulations adapt to new technologies? Have African countries using Starlink compromised their integrity, or have they made a smart economic choice?