Now, Elon Musk and Starlink have done it.
The Independent Communications Authority of South Africa (ICASA), the countryâs telecom regulator, has said it is now investigating SpaceX and Starlink, the satellite internet service provider (ISP), and whether it has been âillegallyâ operating in the country.
Is Starlink guilty? Without a doubt, yes. For months, South Africans have been using Starlinkâs service. They simply plug in to the roaming feature that allows them to use the service from neighbouring countries like Botswana, where Starlink legally operates. Some of these South Africans also smuggled Starlink kits from resellers in neighbouring countries.
This is not âlegalâ and Starlink, on one occasion, warned about this. But South Africans paid no mind. Starlink too, could have enforced a blanket ban in the country, but it only skirted around it for a short period.
Now, with the much-contested debate in South Africa around whether Starlink should come into the country or not, this puts a new spin on the matter. ICASA will definitely find Starlink at fault for operating illegally. But Starlink will likely not face serious penalties, especially if it plays its cards right.
Whatâs really at stake is its formal entry. On May 23, South Africa proposed an âequity equivalentâ policy: foreign tech firms can legally operate without giving up ownership stakes, as long as they commit to investing locallyâthrough infrastructure, training, or skills development.Â
Thatâs a lifeline for Starlink. It bypasses the historically strict 30% equity rule thatâs kept global ISPs at bay. If Starlink seizes the opportunity and complies, it could unlock Africaâs largest broadband market. If it doesnât, it may be locked out indefinitely.