Communications and digital technologies minister Solly Malatsi says he has no say over who gets a licence to operate in South Africa’s skies – but reiterates that low-earth orbit (LEO) satellite services are part of SA’s digital future.
Speaking at the recent International Space Summit Africa, Malatsi said that, rather than waiting a decade to develop domestic LEO capacity “we must create conditions for operators to serve our people now in a manner that supports both national interest and regulatory compliance”.
Malatsi says standards relating to empowerment should be applied uniformly across the sector “because inconsistency is in itself a barrier to the investment that our people need. The ICT sector codes already recognise that transformation empowerment can take more than one form.
“Regulatory certainty and regulatory parity remain necessary conditions for investment at the scale our connectivity challenges demands. Our position is quite consistent. The law must be applied equally and consistently to all entrants.”
Malatsi’s statement comes amid a seeming stand-off between the Independent Communications Authority of South Africa (ICASA) and the ministry, after the minister’s December directive that the regulator enables operators to acquire licences through equity equivalency schemes instead of the current requirement of an outright 30% ownership.
Stand and deliver
In May, ICASA said, although the law would need changing to enable equity equivalency deals to allow international companies to qualify for licences, it was consulting with the ministry “within the confines of its mandate”.
Malatsi’s directive has been seen as pro-Starlink; a company belonging to billionaire Elon Musk that has been lobbying for a change to regulations that would enable it to enter SA.
This was followed by a June notice that clarified that entities that want to operate satellites in SA require three licences. However, ICASA also said it was in the process of establishing an enquiry as to whether new Individual Electronic Communications Network Service licences are required for satellite providers that operate on a wholesale basis.
Malatsi has denied being in favour of Starlink entering SA skies, while government has said his directive seeks to expand broadband coverage to underserviced areas in general, in accordance with SA’s national interests.
Yet, the minister also states it is important to recognise that ICASA “makes independent individual licensing decisions and the minister plays no role in them”.
International advantage
Despite his confirmation of ICASA’s independence, Malatsi told the Space Summit audience: “An international partner brings advanced technology, infrastructure and global scale. Together, they can offer a service that is built to work for more South Africans. And government, including our regulator, played its part by being responsive to what it takes for operators to serve our people.”
Malatsi says “different regulatory models work for different operators”, while noting that Amazon’s entry into the local market through a partnership with Herotel “obviously suited these specific partners”.
There may be other operators that structure their entry into the market “rather differently. Our task as government is not to prescribe a single pathway but to create an enabling environment that works for as many operators as possible.”
Satellite is just one way of expanding broadband access, and is meant to complement, not replace, existing connectivity infrastructure, he says, with each technology – fibre, fixed wireless or satellite – used where it makes the most sense, and satellite filling in where terrestrial infrastructure can’t be economically deployed.
Choices, choices
Government regulation should also enable competition, Malatsi adds, noting that choice is a function of competition, which requires that every willing operator be able to enter the market and compete on an equal basis. This, he says, will always be anchored in public interest and inclusive economic growth.
Malatsi also points to how regulatory openness can help increase the number of satellite subscribers, saying that between eight million and 12 million people in Sub-Saharan Africa could benefit from satellite in a high growth scenario. In a low growth environment, this figure would be less than 1.5 million, he adds.
“The difference will be shaped largely by regulatory openness and the cost of terminals. South Africa intends to be on the right side of that difference.”
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