Starlink mind games in South Africa

South African mobile network operators say they will welcome Starlink’s competition in the local market, but at the same time are asking Icasa to first conduct socio-economic impact assessment, delaying its entry by years.

Presenting before Parliament’s Portfolio Committee on Communication, MTN, Vodacom, and Telkom said they believe Starlink’s entry would contribute to digital inclusion in South Africa.

MTN South Africa CEO Charles Molapisi noted that the operator has partnerships with non-terrestrial and satellite players like Starlink outside of the country.

He said MTN would welcome Starlink to South Africa, as it welcomes all competition.

“We see the non-terrestrial players as partners,” Molapisi said.

“We see satellite players as one bundle. I’m sure the committee is aware that in some of our markets outside South Africa, we’ve already done partnerships with the likes of Starlink.”

He explained that MTN not only welcomes the competition, but also views satellite services as complementary to terrestrial network operators.

Vodacom South Africa CEO, Sitholizwe Mdlalose, said Vodacom also sees satellite networks as complementary to mobile and fixed networks.

“We believe they play a role in accelerating digital inclusion and bridging the connectivity divide, especially in hard-to-reach areas,” he said.

He added that Vodacom believes there must be a level playing field for all market participants, not just Starlink, in all aspects, including ownership regulations.

“Any new entrant to the South African telecommunications sector should be subject to the same regulatory requirements that govern licensed operators,” said Mdlalose.

Telkom CEO for consumer and small business, Lunga Siyo, said the network operators saw new players in the sector as partners who can contribute to enhancing connectivity, particularly in peri-urban and rural areas.

Despite their words of support, Starlink could pose a threat to South African mobile operators. Not only does it offer affordable broadband connectivity, it has also started testing voice calling capabilities.

However, South African telecoms companies have local regulations and BEE as perfect weapons to use in the fight against Starlink.

Delaying the process

Vodacom previously said Starlink should be held to the same standards as terrestrial players, especially regarding local ownership, control, social obligation, performance, and sanctions.

The Association of Communications and Technology (ACT), of which Vodacom, MTN, and Telkom are members, shares the same arguments.

The ACT believes any attempt by South Africa’s communications regulator to develop a satellite licensing framework in the hopes of achieving universal broadband connectivity will be doomed to fail.

It says the Independent Communications Authority of South Africa (Icasa) should first repair the framework for universal service and access to communications.

“We urged the regulator to pause its satellite inquiry and institute a formal process to review licensing provisions in the 20-year-old Electronic Communications Act (ECA),” it said.

“We have been vocal about the need for a review of licensing provisions to align them with a global trend towards a regime that levels the regulatory playing field and which is future-proof.”

The ACT also insisted on a socio-economic impact assessment, which can take a very long time.

Telkom has used this tactic in the past to protect its fixed-line monopoly. Such studies are complex, open to criticism, and take a long time, making them ideal for stalling progress and protecting against competition.

Vestact director Byron Lotter said he understands why the government prevents Starlink from entering the country without making it jump through a few hoops.

“MTN and Vodacom have been forced to deal with many regulatory hurdles to operate mobile data networks in this country,” he said.

“I do not doubt that these companies are lobbying hard to prevent the entry of Starlink and for good reason. It would be unfair to let these guys in without similar treatment.”