Starlink and South Africa: No exceptions in telecom regulation reform

IOL News

6 days ago

On Tuesday, Minister Solly Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code.
Image: Jonathan Raa/NurPhoto/AFP
The Association of Comms and Technology (ACT) has welcomed the recent directives from the Minister of Communication, Solly Malatsi regarding the alignment of ICASA's empowerment regulations with the B-BBEE ICT Sector Code.
On Tuesday, Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code.
"This policy development, coupled with a proposed inquiry into the necessity of I-ECNS licence applications, marks a pivotal moment for South Africa's telecommunications sector, potentially reshaping the landscape of competition and transformation," ACT said in a statement.
As the industry stands on the brink of significant regulatory reforms, ACT said it urges that these changes be implemented with transparency, consistency, and equitable enforcement of the law.
"If executed properly, this approach could herald a new era for the sector, fostering an environment conducive to both innovation and investment. At the heart of ACT's response is a strong endorsement for the Minister's initiative to have ICASA formally acknowledge Equity Equivalent Investment Programmes (EEIPs)," the Association further said.
The organisation is poised to make comprehensive submissions reflecting its commitment to bridging regulatory ambiguities between ICASA's ownership rules and the B-BBEE ICT Sector Code.
'We support efforts that contribute to the resolution of regulatory complexities while promoting South Africa's transformation agenda,' Nomvuyiso Batyi, CEO of ACT said.
ACT added that it advocates for innovative, scalable solutions that not only deliver impactful results but also restore policy transparency and bolster investor confidence.
"The Association firmly believes that increased competition, particularly in terms of connectivity solutions to underserved communities, is a vital component of this growth. We are particularly supportive of frameworks that ensure all operators, whether terrestrial or satellite, navigate the same regulatory landscape,' Batyi said.
"This is essential for fostering a sustainable and competitive digital economy that can adapt to the rapidly evolving technological landscape. We have consistently been on the pulse of this issue. We've supported the rollout of satellite technology in South Africa, within the same rules that everyone else follows,' Batyi added.
Meanwhile, the Economic Freedom Fighters (EFF) condemned Malatsi's recent actions aimed at enabling Elon Musk's satellite company to operate in South Africa without adhering to local ownership laws.
The party expressed deep concern over what it described as an unlawful attempt to bypass legislation designed to protect local economic interests and transformation.
This 'alignment' would allow foreign entities to operate without complying with the 30% local ownership requirement mandated by law for previously disadvantaged groups.
Instead, the EFF said Malatsi wants Starlink to use 'Equity Equivalents' under the Broad-Based Black Economic Empowerment (B-BBEE) Act, an approach the EFF describes as an 'anti-transformation participation' strategy.
EFF spokesperson Sinawo Tambo said: "In what can only be described as an unlawful attempt at subverting the powers of the Parliament of South Africa by using a Ministerial Policy Directive, Minister Malatsi characterises the amendments he wants to make to two Acts of Parliament as regulatory alignment."
Trade union, Congress of South African Trade Unions (Cosatu) said it will be engaging with the relevant Departments for Communications and Digital Technologies as well as Trade, Industry and Competition to seek assurance that any such proposals remain in line with existing legislation, in particular the Broad Based Black Economic Empowerment (BBBEE) Act, as well as the constitutional imperative to advance transformation across all sectors of the economy.
The union said it noted the excitement on social media about Starlink.
"As a Federation we remain guided by the law and will at all times jealousy guard its supremacy, and our transformation journey as mandated by the electorate and guided by the Constitution. The Federation's primary concerns remain defending and creating badly needed jobs, spurring economic growth, tackling anti-competitive monopolistic practices, advancing socio-economic transformation and affirming the rule of law."