Starlink’s planned expansion into South Africa has encountered a significant setback after the satellite internet provider withdrew from regulatory hearings led by the Independent Communications Authority of South Africa.
SpaceX, Starlink’s parent company owned by billionaire Elon Musk, notified ICASA on Wednesday evening that it would not participate in the oral hearings. The decision came just hours after SpaceX representatives failed to appear for their scheduled presentation earlier that day.
The hearings, initiated by ICASA, aim to gather industry perspectives on a proposed licensing framework for satellite services in South Africa. A key focus is establishing a registration process for international satellite operators, whether they provide services independently or through partnerships with locally licensed entities.
Although Starlink’s services are technically available in South Africa, the company has yet to obtain official approval due to regulatory constraints. One major obstacle is the country’s requirement that foreign telecom operators maintain at least 30% local ownership—a policy SpaceX has criticized as a significant barrier to entry.
In a written submission to ICASA on January 28, SpaceX argued that the regulation effectively excludes foreign satellite providers, particularly those with direct-to-consumer business models like Starlink. The company highlighted that its global policy prohibits local shareholding, making compliance with South African law unfeasible.
SpaceX further stated that even when foreign operators are willing to meet Broad-Based Black Economic Empowerment requirements and invest in community programs, the rigid ownership requirement remains an impediment.
The company urged ICASA to adopt a more flexible approach, aligning regulations with the ICT sector code, which allows for equity-equivalent investment programs instead of direct local ownership.
Starlink’s withdrawal from the hearings has fueled wider political tensions. On Tuesday, Musk took to social media to accuse South Africa of enforcing “openly racist ownership laws,” reigniting debates over the country’s B-BBEE policies and the recently signed Expropriation Act.
The issue has also drawn international attention. On Thursday, newly appointed U.S. Secretary of State Marco Rubio announced he would not attend the upcoming G20 summit in South Africa, citing concerns over land reform policies and what he described as an anti-American stance.
In response to the growing controversy, President Cyril Ramaphosa held discussions with Musk to address what his office described as “misinformation about South Africa,” particularly regarding land reform. However, with SpaceX stepping away from the regulatory discussions, the future of Starlink in South Africa remains uncertain.
