Starlink Says It Cannot Apply. ICASA Says It Has Not

Starlink says South Africa’s telecommunications ownership rules prevent it from applying for an operating licence. The regulator’s records, as the communications minister told Parliament in June, show that the company has submitted no application.

Both statements are on the record. Between them sits one number: 30.

South Africa’s Electronic Communications Act requires individual licence holders to allocate at least 30 per cent ownership to historically disadvantaged groups. Companies seeking to operate a network and sell connectivity need two individual licences: one for electronic communications network services and another for electronic communications services, in addition to spectrum rights.

Starlink has said it will not surrender 30 per cent ownership of its local business to meet the requirement.

Now a state-backed network operator has joined the debate. Telkom, whose largest shareholder is the South African government, has told the Independent Communications Authority of South Africa (ICASA) that its 2021 equity regulations go beyond what the Broad-Based Black Economic Empowerment Act and the ICT sector code envisage.

The resulting uncertainty has “potentially deterred much-needed investment” in South African networks, Telkom argued, according to TechCentral.

The submission was made to ICASA’s inquiry into new network licences. TechCentral reports that Telkom filed it in February. Its position is that the ownership requirements should be eased for all licensees, including Starlink.

A separate requirement in the regulations for 30 per cent black ownership has been suspended by ICASA, TechCentral reports. However, the 30 per cent threshold in the Electronic Communications Act remains in place.

A door that keeps opening and closing

In December 2025, Communications Minister Solly Malatsi issued a policy direction asking ICASA to recognise equity-equivalent investment programmes as a way of meeting empowerment objectives.

Under this approach, foreign companies could invest in skills development, local procurement and infrastructure instead of selling an ownership stake in their South African operations.

Reuters reported at the time that the proposed change could allow satellite operators, including Starlink, to enter the market without transferring 30 per cent ownership.

In May, ICASA responded that the Electronic Communications Act requires individual licence holders to have at least 30 per cent ownership by historically disadvantaged groups. Fully recognising equity-equivalent investment programmes would require an amendment to the legislation, the regulator said.

A parliamentary response in June confirmed that ICASA had received no applications from Starlink for spectrum or either of the two required licences.

Starlink has supported the equity-equivalent approach, arguing that it would allow foreign operators to contribute to South Africa’s economy “without requiring local entity ownership”.

The company has also offered to fund high-speed internet access for South African schools in perpetuity in exchange for permission to operate. MyBroadband reported the proposal, which was made last year. However, the offer remains conditional on market access and has stalled, according to NovaNews.

The dispute has now moved to the courts. Business group Sakeliga has approached the High Court, arguing that ICASA is misinterpreting the Electronic Communications Act.

The organisation argues that the legislation establishes a 30 per cent ownership threshold “or such other conditions”, giving the regulator room to consider alternative empowerment arrangements. If the court sides with ICASA, Sakeliga wants the ownership threshold declared an unconstitutional quota, according to Bandwidth Blog.

Why a workaround is not simple

Starlink could theoretically enter the market by acquiring an existing licensed operator rather than applying for new licences.

However, commentators have argued that an acquisition would not automatically remove the ownership requirement. The transaction would change the company holding the licences, not necessarily the conditions attached to them.

ICASA has also not been issuing new licences while its inquiry is under way.

In a submission to the inquiry, Sprint SA cited ICASA figures showing that 470 network licences and 458 service licences had been issued as of October 31, 2025. The figures also showed that 171 transfers of ownership and control had been approved since the licensing regime began.

For now, the statutory 30 per cent requirement remains unchanged. Starlink has not applied for the licences it needs, while ICASA’s regulatory inquiry and Sakeliga’s court challenge remain unresolved.

The outcome will help determine whether South Africa’s empowerment framework can accommodate alternative investment models without changing the ownership requirements set out in its telecommunications legislation.