Low-Earth orbit satellite provider Starlink has sent a message to its SA database encouraging them to email the Independent Communications Authority of SA (ICASA) asking it to extend the definition of empowerment ownership.
The internet service provider, owned by billionaire Elon Musk’s SpaceX, wants ICASA to accept the policy direction gazetted by the Department of Communications and Digital Technologies (DCDT) that equity equivalent investment programmes (EEIPs) be allowed in the ICT sector.
That the Electronic Communications Act (ECA) requires that companies be 30% owned by Historically Disadvantaged Individuals before they can be granted a telecoms licence has been a stumbling block for its bid to operate in SA.
Hot topic
This issue was a topic that defined 2025 following an initial and controversial policy directive in May issued by DCDT minister Solly Malatsi, in which he requested that ICASA align its licensing requirements with the ICT Sector Code. The minister’s directive was gazetted mid-December.
Implementing EEIPs in telecoms would enable multinational companies that can’t sell equity to become empowered and be awarded telecoms licences. Malatsi’s directive was broadly seen to be pro-Starlink, as it would pave the way for the company to enter the country.
Among ICT multinationals that have implemented programmes under EEIPs in terms of the ICT Sector Code are HP, Microsoft, IBM, Dell, Samsung, and Amazon Web Services.
A few clicks
Starlink’s emails to its SA database are automatically set up to ask recipients to email ICASA to accept this policy directive. This email also goes to the Presidency and the chairperson of Parliamentary Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni-Diko.
The pre-populated emails, opened via a link in Starlink’s introductory note, indicate that the sender supports the policy change because:
- It appropriately aligns licensing regulations with the ECA and the ICT sector empowerment code,
- It encourages real, verifiable investment in connectivity and skills development within rural communities,
- It helps expand internet access to rural and underserved regions,
- It supports education, transformation, and opportunity for millions of learners, and
- It creates an opportunity for economic growth across the country, not just in the cities.
The pre-written text urges ICASA to “immediately” align its regulations with the ECA and the broad-based black economic empowerment ICT Sector Code through recognising EEIPs as a legitimate alternative to equity.
The email to its database states that “SA is closer than ever to a transformative digital breakthrough” and all that is now required is that the directive – which was supported by 90% of South Africans during a recent public consultation – be implemented.
“Only one step remains: ICASA must implement the Directive. By correcting just four sentences in the licensing regulations, Starlink service could be available nationwide within weeks. Your support can help accelerate this decision and quickly bring connectivity to the communities that need it now,” it says.
Parliamentary backlash
In December, Malatsi faced an outcry from the Portfolio Committee on Communications and Digital Technologies, the Economic Freedom Fighters, and the ANC, who criticised the minister for what they called “an unlawful move that bypassed Parliament” when he finalised this policy.
Government, however, has stated that any policy directive would be in SA’s national interests and seek to expand broadband to more rural areas where it is prohibitively costly to roll out infrastructure.
Presidential spokesperson Vincent Magwenya responded to the backlash, stating the minister sought to accelerate broadband access to underserved areas and was not favouring any single company.
ICASA has said it “will review and consider the policy direction through its established regulatory processes”.
Deal sweetener
Starlink has already offered to provide over 5 000 rural schools with fully-funded Starlink kits and service through a R500 million investment as well as facilitate the installation/maintenance support alongside local South African companies.
“Not only will this help the South African 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 school children each year, by providing access to world-class digital education,” Ryan Goodnight, senior director of Starlink Market Access, has previously said in a letter to Department of Trade, Industry, and Competition minister Parks Tau.
“By empowering the youth of South Africa, Starlink will play a critical role in the country’s transformation journey,” Starlink says in its email missive.
Starlink also makes the point that it will not be receiving any special treatment or workarounds to broad-based black economic empowerment laws, which it has indicated it fully supports.
“Every day of delay keeps millions offline,” says Starlink. “Time is of the essence. Thank you for helping South Africa move quickly from policy to progress and bringing reliable, high-speed internet to every corner of the country.”
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