Technology News Nigeria

30% black ownership: Vodacom backs Starlink ban in South Africa

30%-black-ownership:-vodacom-backs-starlink-ban-in-south-africa

Vodacom has thrown its weight behind the Independent Communications Authority of South Africa’s (ICASA) decision to prevent Starlink from operating in the country.

The telecom giant said it supports the enforcement of Black Economic Empowerment (BEE) laws, which mandate that any company seeking a telecoms licence must have at least 30% ownership by historically disadvantaged South Africans.

Starlink, the satellite Internet service operated by Elon Musk’s SpaceX, has not applied for the necessary Electronic Communications Network Services (ECNS) and Electronic Communications Services (ECS) licences required to operate legally in South Africa.

ICASA confirmed that the company has yet to submit a formal application, and Starlink’s global business model, which avoids local equity partnerships, appears to be at odds with South African law.

Vodacom’s endorsement of ICASA’s position is a significant development, reflecting a broader consensus among local operators in favour of economic transformation.

“We believe in the importance of adhering to national regulations that promote inclusivity and redress historical inequalities,” Vodacom noted in its statement. The company added that BEE compliance is essential for sustainable and equitable growth in South Africa’s telecom sector.

Starlink is already operational in several neighbouring countries, including Mozambique, Lesotho, and Botswana, where regulatory environments differ.

This has triggered calls from some quarters within South Africa to reassess the rigidity of local ownership rules in order to improve connectivity, especially in underserved rural areas. However, authorities remain firm that economic transformation cannot be compromised.

Critics of the ban argue that restricting Starlink’s entry limits consumer choice and hinders efforts to bridge South Africa’s digital divide.

For rural communities with poor infrastructure, satellite Internet could offer a lifeline. But ICASA and supporters of the current policy insist that empowerment objectives must take priority over short-term convenience.

This incident adds to a growing conversation across African markets about how to welcome foreign tech innovation while maintaining sovereignty and empowering local players. The Starlink case could become a bellwether for how other African regulators choose to balance economic justice with the need for digital inclusion.

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