Starlink classifies South Africa as ‘low-priority’ as regulatory hurdles stall launch

South Africa continues to be without Starlink, SpaceX’s satellite internet product due to regulation challenges. As such, the Elon Musk-led company classifies South Africa as a low-priority area for a potential launch. This is a huge blow for citizens in that country seeing as Starlink has been blazing the trail in other markets. 

Clarifying the issue, SpaceX said it had a way of prioritizing countries ahead of a Starlink rollout. Markets without any registration or licensing criteria are considered high-priority. Countries with licensing requirements with few possible challenges are deemed to be medium-priority. Finally, countries that SpaceX believes will present challenges in terms of licensing are termed low-priority. 

Based on the above structure, South Africa is in the last category. According to SpaceX, the primary challenge it faces in South Africa is a particular Electronic Communications Act (ECA) criterion. The criterion states that historically disadvantaged groups like blacks and women must own at least 30% of any telco seeking an operational license.

As it currently doesn’t satisfy that prerequisite, getting licensed is out of the picture for now. Starlink is available in a handful of African countries like Nigeria, Mozambique, Mauritius, Rwanda, and Kenya. SpaceX plans to launch the satellite service in more countries before the end of 2024. 

Interestingly, the ECA requirement isn’t the only hurdle SpaceX must cross. South Africa’s Internet Service Provider’s Association claims that the Independent Communications Authority of South Africa (ICASA) hasn’t approved any license request for a while. It further stated that small-scale ISPs have suffered greatly due to this trend, despite their massive contributions to South Africa’s Black Economic Empowerment roadmap. 

Read also: Elon Musk’s Starlink finally lands in Nigeria, but not for everyone.

South Africans have a different way of getting Starlink 

Despite not being available officially, IT Lec, an internet service provider (ISP), has enabled South Africans to enjoy Starlink’s roaming service. To access this feature, consumers must own a router and antenna. That’s where IT Lec enters the picture. 

The ISP claims it has been importing the above hardware for some months. The hardware costs R15,000 (around $800) with tax and import duties. Aside from this, interested users must pay a monthly fee of R1,799 (around $100). 

IT Lec revealed it had recorded 2,600 sign-ups for this service so far. While this figure looks small, it doesn’t account for those that handled the ordering and importation process themselves or those that patronized other ISPs.

However, IT Lec shared that it had closed pre-orders for the Starlink roaming kits due to stock shortages. This is a temporary move, though. The ISP also mentioned that users from neighbouring Botswana, Namibia, and Zimbabwe had registered their interest in the roaming kits. Ironically, Starlink is scheduled to officially launch in the above markets later this year. 

To tackle future run-ins with South Africa’s regulatory agency, IT Lec has made several unsuccessful attempts to secure an ECS license. To further complicate the issue, the ISP claimed it engaged some ICASA officials regarding Starlink, but they didn’t quite understand how the satellite internet service worked.