Starlink, Elon Musk’s satellite internet company under SpaceX, is gearing up to officially launch in South Africa with a major R2.5 billion investment.
The company is working to align with South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) laws, a move that’s key to getting licensed.
Speaking at the Internet Service Providers’ Association’s recent meeting, Starlink’s Ryan Goodnight confirmed that the company is waiting for local regulators to adjust the framework.
“Starlink complies with local laws in every market where it’s licensed, and we’ll do the same in South Africa,” he told attendees.
To secure its license from ICASA, Starlink will have to sort out its B-BBEE entity. Once the legal conditions are met, this new local company will be formally launched.
Starlink, however, does not plan to sell equity in its local subsidiary; instead, it’s proposing an “equity equivalence” model: a R500 million project to connect 5,000 schools with free internet and equipment.
The total investment of R2.5 billion will be divided across several areas, with R500 million allocated to an equity equivalence programme aimed at providing free internet and equipment to 5,000 schools.
The remaining R2 billion will be invested in infrastructure, including ground stations, satellite gateways, local staffing, power systems, and leased land. Starlink will also partner with local ISPs and telecom companies to manage installation, maintenance, and customer support, all through an open-access approach.
Additional plans include collaborating with local ISPs and telecom companies for installation, maintenance, and reselling services.
Starlink also aims to equip National Sea Rescue Institute vessels with reliable connectivity for safer operations at sea, while creating jobs and opportunities for contractors in construction, fibre networks, and security services.
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