Telecommunications giant Vodacom has entered an agreement with SpaceX’s Starlink.
Starlink, owned by Elon Musk, is one of the world’s largest satellite broadband providers.
Vodacom said on Wednesday the collaboration between it and Starlink is expected to deliver high-speed, low-latency broadband internet in the 25 African countries it already serves.
However, whether it will be permitted to operate in South Africa remains unclear.
Musk has previously attempted to get Starlink to operate in the country, but hit a BEE law hurdle. The law mandates that foreign-owned telecoms companies allocate at least 30% of local equity to historically disadvantaged groups, primarily black South Africans.
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Starlink issues in SA
The BEE regulations prevent companies, even large international firms that typically do not sell shares to local partners, from qualifying for individual licences under the Electronic Communications Act, even if they can contribute to South Africa’s transformation goals through means other than traditional ownership.
However, Communications and Digital Technologies Minister Solly Malatsi has since published a policy direction to provide alternatives to pave the way for Starlink in the country. The statement, however, made it clear that new service providers, including those offering new technologies, will not be exempt from the country’s transformation obligations.
“Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa’s socio-economic development goals.
“[The Independent Communications Authority of South Africa’s] regulations may continue to require 30% equity ownership by historically disadvantaged individuals but must also permit commitments envisaged by the ICT Sector Code as valid conditions for applications for individual licenses,” the statement read.
Vodacom is not aware about Starlink’s operations
A Vodacom spokesperson could not confirm to The Citizen whether its collaboration with Starlink includes the satellite broadband provider operating in South Africa.
“We cannot confirm Starlink’s operations in South Africa. However, we can confirm that we aim to launch these services across our footprint once individual regulatory approvals are completed. Individual market announcements will be made as and when the requisite approvals are obtained.”
Vodacom’s footprint includes South Africa, the Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Lesotho, Mozambique and Tanzania.
The Citizen has reached out to Starlink on whether it expects to operate in South Africa. This story will be updated when the comment is provided.
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Details of the collaboration
According to a media statement by Vodacom, it will be authorised to resell Starlink equipment and services to enterprise and small business customers in Africa.
“This will be done while retaining the flexibility to create localised value propositions that consider the unique requirements and affordability of the African market,” read the statement.
Vodacom added that integrating Starlink’s satellite backhaul into Vodacom’s mobile network will accelerate network coverage expansion, while increasing network performance in rural areas.
“The collaboration will deliver robust connectivity to remote schools, health centres and communities, empowering millions with access to digital services and information.”
Vodacom’s strategy
Vodacom highlighted that their collaboration with Starlink aligns with its 2030 Vision strategy to grow its customer base to 260 million and its financial services customers to 120 million within five years.
“By harnessing Starlink as a complementary layer, Vodacom is edging closer to universal coverage and reaffirming its commitment to connecting people to a better future.”
Vodacom Group CEO Shameel Joosub said: “We are delighted to collaborate with Starlink, a move that accelerates our mission to connect every African to the internet, and this partnership will unlock new possibilities for the unconnected.”
Chad Gibbs, Vice President of Starlink Operations at SpaceX, added: “Starlink is already serving people, businesses, and organisations in 25 African countries. By collaborating with Vodacom, Starlink can deliver reliable, high-speed connectivity to even more customers, transforming lives and communities across the continent.”
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