The impact of Starlink on South African digital inclusion
Image: Leon Nicholas/Independent Newspapers
The anticipated potential entry of Elon Musk's Starlink into the South African telecommunications market has ignited a flurry of strategic considerations among industry players, regulators, and policymakers.
Vodacom, the giant South African network operator, has waded into the debate saying satellite technology should be seen a complementary force in expanding digital inclusion rather than a direct threat to its core operations.
This comes amid recent government developments, including the gazetting of a new B-BBEE policy that could potentially facilitate the entry of companies like Starlink, shortly after a high-profile meeting between President Cyril Ramaphosa and US President Donald Trump, whose campaign was partly funded by Musk.
Responding to IOL, a Vodacom spokesperson clarified the company's position on satellite internet providers like Starlink.
'We recognise satellite networks as a valuable addition to our existing infrastructure. They are instrumental in bridging the connectivity gap, particularly in remote and hard-to-reach areas where terrestrial networks face limitations.
'We focus on investing in and expanding our 4G and 5G networks to serve urban and semi-urban communities.'
The company said its strategy aligns with a broader industry trend of viewing satellite networks as enablers of digital inclusion rather than outright competitors.
The Vodacom media team added that the telecom giant has partnered with global satellite providers such as AST and Amazon's Project Kuiper to extend its network reach across Africa and Europe.
'These collaborations leverage low Earth orbit (LEO) satellite technology to enhance coverage and resilience, especially in underserved regions.'
Starlink's potential entry into South Africa raises significant questions about the country's regulatory landscape and market dynamics.
ICASA, the national telecommunications regulator, has been examining a proposed satellite framework. Industry stakeholders have urged a balanced approach that promotes innovation while ensuring fair competition.
Vodacom has welcomed ICASA's consultation process, advocating for a licensing framework that aligns with existing laws and maintains a level playing field.
Mofihli Ramari, spokesperson for the B-BBEE Commission, emphasised that the ICT Sector Charter Council and ICASA oversee the B-BBEE Act and related sector codes.
'Any potential changes to B-BBEE legislation or the entry of new players like Starlink should be carefully examined within the current regulatory and transformation framework,' Ramari stated.
'The focus remains on ensuring that transformation goals - such as black ownership and enterprise development - are upheld, regardless of the nature of technological advances or new entrants.'
Regarding employment, Vodacom reassured that technological innovation will not threaten existing jobs.
'Satellite networks serve specific use cases and do not replace the cost-effective, high-capacity terrestrial infrastructure that supports urban centers,' the company noted.
"Vodacom's long-term vision emphasises investment in local workforce development, skills training, and support for black-owned enterprises through the ICT Sector Code.
Amid fears of disruption, Vodacom said reiterated that it remained optimistic about satellite technology's transformative potential, as CEO Shameel Joosub highlighted at the 2024 UN General Assembly.
'Harnessing satellite and mobile technology together can finally close the digital divide—reaching rural communities, farmers, students, and underserved populations. We aim to ensure no one is left behind in South Africa's digital journey.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
an hour ago
- The South African
Bolt demands justice following Soweto driver's murder
E-hailing company Bolt has confirmed that some of the drivers affected by the alleged taxi violence in Soweto are operating on its platform. This comes after one person was shot and killed, and two others were injured when their vehicles were set alight at Maponya Mall in Soweto on Wednesday, 13 August. The attack has sparked outrage across the country, with Bolt condemning the violence in the strongest terms. Senior General Manager of Bolt South Africa, Lerato Mostoeneng, expressed sadness over the incident. Mostoeneng said it is appalling that anyone should lose their life for trying to earn an honest living. 'Our hearts go out to the driver's family, friends, and all those affected by this senseless act of violence. We condemn these attacks in the strongest terms and call for urgent action from law enforcement to ensure the safety of all e-hailing drivers operating in South Africa,' said Mostoeneng. Bolt said driver safety remains a top priority and that it has reached out to drivers in the affected areas to offer support and guidance. The company is also engaging with authorities to strengthen protection measures in known high-risk zones. Police are investigating a case of murder, two cases of attempted murder, and arson. According to a police report, four men approached a driver, shot him, and then torched the vehicle. The attackers also shot another driver, who managed to escape. A passerby sustained a gunshot wound, and both injured individuals were taken to the hospital. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news
The Citizen
2 hours ago
- The Citizen
Weekly economic wrap: local data good for local GDP
Although this week's economic data looked good for GDP, there is a pervasive sense of waiting for the US tariff that affected unemployment. It was a busy week on the economic data front with most of the local data looking good for the second quarter South African gross domestic product (GDP). South Africa also submitted a new proposal for the US tariff ,which will hopefully see the 30% reduced. Lisette IJssel de Schepper, chief economist at the Bureau for Economic Research (BER), says the batch of June high-frequency data was generally positive for GDP. She notes that while June retail sales slowed after a very strong April and May, the full quarter was solid and, as such, also bodes well for consumer spending in the second quarter. 'In addition, the quarterly improvements in mining and manufacturing production are welcome after both sectors contracted in the first quarter. Conversely, wholesale declined and the labour force survey showed an uptick in the unemployment rate, with little job growth outside of the trade sector.' De Schepper says there was also plenty to digest on the international data front with the biggest release being the US inflation data. 'After a softer-than-expected consumer inflation print, markets fully priced in a 25 basis points rate cut by the Federal Reserve in September, with some talk of a potentially bigger cut. However, a surge in wholesale inflation (PPI) provided a sense check to this narrative.' ALSO READ: 12 companies close, 4 000 jobs lost as US tariffs and sales slump bite automotive industry Everyone waiting for the outcome of the Trump/Putin talks on Ukraine Bianca Botes, director at Citadel Global, points out that oil markets have been treading water, with Brent slipping back under $67/barrel after a short-lived bounce, as traders wait to see whether the Alaska meeting between the US and Russian presidents can deliver tangible progress on Ukraine. 'Washington warned of sharper sanctions on Russian crude buyers if talks fail, keeping geopolitical risk priced in. At the same time, signs of stronger demand from Japan and the prospect of US monetary easing are acting as a counterweight to the OPEC+ (Organization of the Petroleum Exporting Countries and other oil-producing countries) supply expectations and demand-growth concerns. 'Gold has been losing ground, heading for its worst week since late June. However, it is marginally in the green this morning. The hotter US inflation print of 2.7% has shifted rate-cut forecasts toward a slower pace, dulling bullion's appeal in the near term.' Botes says the rand has pulled back to around R17.60/$, giving up its earlier strength as gold prices slipped and the greenback regained some lost ground. 'Domestic sentiment remains cautious, with stronger manufacturing output offset by weaker employment and unease over the long-term cost of US trade measures.' The rand was trading at R17.58/$ on Friday afternoon. ALSO READ: Unemployment could get even worse in third quarter due to US tariffs Unemployment increases again in the second quarter According to Statistics SA's Quarterly Labour Force Survey, the unemployment rate increased to 33.2% in the second quarter, up from 32.9% in the first quarter. Damian Maart, economist at the Bureau for Economic Research, says the number of people classified as not economically active due to discouragement declined by 0.8% (28 000), while those not economically active due to other reasons remained the same between the two quarters. 'This decline pushed the expanded unemployment rate down by a modest 0.2% to 42.9% in the second quarter, which remains worryingly high.' Busisiwe Nkonki and Isaac Matshego, economists at the Nedbank Group Economic Unit, noted that overall, job creation remained low as companies sit with excess capacity amid weak demand and uncertainty regarding US trade policies affecting South Africa. Mamello Matikinca-Ngwenya, Siphamandla Mkhwanazi, Thanda Sithole and Koketso Mano, economists at FNB, say the increase in the unemployment rate, combined with the ongoing moderation in the absorption rate, underscores persistent vulnerabilities in the labour market and the economy's limited capacity to generate much-needed jobs. They point out that the economy managed to recover 2 272 053 of the jobs lost in the first half of the pandemic year (2020) and the 659 566 jobs lost in the third quarter of 2021 after the July 2021 social unrest. 'However, formal non-agricultural employment diverged from its pre-pandemic trajectory, a sign of the economy's weakened structural health and diminished ability to achieve the job creation ambitions of the National Development Plan (NDP).' ALSO READ: Business confidence increases, but will come under pressure from US tariff Retail sales growth fell short Retail sales growth slowed notably but is still positive on a quarterly basis. It was under market expectations of 3.3%, posting a 1.6% increase in June compared to 4.3% in May. Wholesale trade sales, on the other hand, contracted at a slower pace of 1.7% in June compared to a 3.7% decline in May. Maart says this marked the slowest rate of contraction in the past three months. Motor trade sales grew at a slower annual rate of 3.1% in June, down from 4.1% in May. Sales were flat monthly and quarterly growth was marginal at 0.6%. Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say despite the loss in momentum, this print suggests that the retail industry grew by 0.9% in the second quarter, affirming their view of a recovery in GDP growth in the second quarter. Nkonki and Matshego expect the upward momentum in retail sales to continue, supported by rising real incomes, subdued inflation, continued withdrawals of contractual savings, and lower debt servicing costs compared to a year ago. ALSO READ: Mining production improves, but challenges loom Manufacturing and mining production surprised to the upside Manufacturing production grew by 1.5% compared to the first quarter, which saw a 1.9% decline. On an annual basis, manufacturing production growth also surprised to the upside, exceeding market expectations of 0.8% by rising to 1.9% in June, Maart says. Like factory output, mining production outperformed expectations, showing a notable improvement with an increase of 2.4%, in its second month of growth. The biggest boost to the annual performance came from platinum-group metals. Maart says overall mining production is set to make a positive contribution to GDP growth in the second quarter, recording a 3.9% increase compared to the previous quarter. Nkonki and Matshego say the outlook for both sectors remain murky. 'The 30% US tariff will directly affect manufacturing production as US demand for South African products decline, but the cyclical upturn in domestic demand should help to soften the blow. 'Given that most mining products are exempt of US tariffs, this sector will be affected indirectly as US trade policies place downward pressure on global growth and commodity prices.' Matikinca-Ngwenya, Mkhwanazi, Sithole and Mano say the full manufacturing and mining data suggests that the sector contributed positively to GDP growth in the second quarter, based on the 1.6% quarterly growth.
The South African
4 hours ago
- The South African
Correctional Services launches prison BAKERIES to save costs
Correctional Services Minister Dr. Pieter Groenewald has announced the continued expansion of the department's inmate-run bakery programme, aimed at reducing outsourcing costs and promoting self-sustainability within South African correctional facilities. Speaking at the launch of a new bakery at Westville Prison in Durban, Groenewald said the initiative has already saved taxpayers hundreds of millions of rands and will continue to grow as part of broader cost-cutting and rehabilitation efforts. 'This bakery alone will save R3 million annually for the taxpayer. Across all self-sufficiency projects last year, we saved nearly R500 million,' Groenewald said. To date, 13 bakeries have been rolled out across various prisons, with plans to expand further. At Westville, 50 inmates work in shifts to produce more than 3 800 loaves of bread daily, at a cost of R8 per loaf – significantly lower than the R23 per loaf paid to private service providers. Beyond cost savings, Groenewald highlighted the rehabilitative impact of the programme, with inmates gaining valuable skills to aid reintegration into society post-incarceration. Mlindeni Xaba, one of the inmates working in the Westville bakery, expressed gratitude for the opportunity. 'I'm thankful to the officials who helped us make better choices. Now I have the skills to open a business once I'm released and support my family,' Xaba said. The bakery programme forms part of a wider self-sufficiency strategy that includes vegetable farming, abattoirs, and tree nurseries within correctional facilities. Groenewald noted the significance of these projects amid rising operational costs and a budget reduction of R11.7 billion over the past five years. 'We'll continue enhancing self-sufficiency to lessen reliance on the state and ensure inmates leave with real skills,' he said. The Department of Correctional Services plans to scale these efforts further, with long-term goals of fully internalising food production and expanding vocational training opportunities for inmates. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
