Starlink amps up public advocacy push as it battles for a SA operating licence, but Icasa stands its ground

South Africa’s simmering debate over Starlink and its bid to operate officially in the local market has entered a new phase, one defined as much by public persuasion as by regulatory wrangling.

This week, Starlink launched a high-visibility “myths and facts” advocacy page on its global website aimed directly at South African consumers and stakeholders.

The site confronts the most persistent criticisms of the company’s licensing bid, from Black Economic Empowerment (BEE) concerns and national security fears to worries about monopoly risk and its long-term commitment to the South African market.

Countering the critics — what Starlink says

On its newly published page, Starlink addresses the perception that it wants to circumvent local transformation law.

The company firmly denied any intention to “ignore or bypass” Broad-Based Black Economic Empowerment objectives. Still, it stated that the sticking point lies not with the goals themselves, but with how they are applied within the telecom licensing framework.

Starlink stresses that it supports transformation goals and proposes to meet them through Equity Equivalent Investment Programmes (EEIPs), a legally recognised B-BEE mechanism that counts direct investments in local socio-economic initiatives towards empowerment obligations instead of requiring a fixed 30 % shareholding by locally disadvantaged groups.

These programmes are already part of other sector codes in South Africa and have been used by global tech firms, such as Microsoft, IBM and AWS for decades.

The advocacy page also touches on other criticisms:

National security and data privacy: Starlink emphasised that it will comply with all South African laws on data protection, national security and lawful interception, the same standards its services meet in other markets.

Employment and local economic impact: The company said it plans to partner with SA suppliers and installers to support job creation and stimulate local skills development, citing research that increasing broadband penetration has measurable GDP benefits.

Commitment to rural connectivity: One of Starlink’s flagship pledges is a R500 million investment plan to connect 5 000 rural schools with free high-speed internet, potentially benefiting millions of learners if it secures an operating licence.

The page is an explicit attempt to rebut claims, including from political parties across the spectrum, that regulatory changes to accommodate Starlink would amount to special treatment or loopholes designed to reward the Elon Musk–led company.

Why this matters now

Starlink’s advocacy push follows months of public debate and shifting regulatory dynamics.

At the heart of the dispute has been South Africa’s requirement, under current rules that foreign telecom operators must hold 30 % of local equity in a way that benefits historically disadvantaged South Africans.

SpaceX, Starlink’s parent, has resisted equity dilution in its subsidiaries, arguing that the rule effectively bars them from entering the market.

In response, Communications Minister Solly Malatsi issued a policy directive late last year instructing the Independent Communications Authority of South Africa (Icasa) to align its ownership regulations with the broader B-BEE framework and recognise EEIPs, a move that could unlock a path to licensing for Starlink.

Icasa’s stance: legal process and regulatory caution

Despite this political direction, Icasa’s official position remains anchored in the regulatory process.

The authority has repeatedly pointed out that Starlink currently does not hold any operating licence to provide electronic communications services in South Africa, meaning its services are not yet lawful.

Icasa has also initiated investigations into alleged unlawful use or provision of Starlink services within the country, deploying inspection teams and signalling the potential for enforcement action if breaches of the Electronic Communications Act are confirmed.

Regulator leadership has emphasised that any shift in licensing conditions must come through a formal consultative process, including public hearings and internal regulatory amendments, not simply through ministerial directive.

This measured approach reflects Icasa’s dual role: promoting competition and innovation while safeguarding compliance with the law and South Africa’s transformation objectives.

FAST COMPANY (SA)