South Africa proposes new rules for Starlink – MyBroadband

The Independent Communications Authority of South Africa (Icasa) has published a consultation paper for a proposed new licensing framework for satellite services.

According to Icasa, the enquiry aims to determine a regulatory and licensing framework for satellite services in South Africa, as well as the procedures it might implement for their provisioning.

It will also consider the need to review spectrum fees, taking into account the increasing amount of bandwidth used by satellite systems operating in higher frequency bands.

Icasa’s discussion document specifically addresses foreign satellite systems, like SpaceX’s Starlink.

Starlink is currently operating illegally in South Africa by offering its regional and global roaming services in the country.

Based on reports from unofficial importers, there are already thousands of Starlink users in South Africa.

This includes households and businesses in remote areas that have no other options or where wireless and cellular broadband connectivity is poor.

Customers include fast food chains who do not wish to have their names disclosed, as well as government departments.

When Starlink opened global pre-orders in February 2021, the Elon Musk-owned satellite broadband service initially estimated that it would launch in South Africa by 2022.

Around November 2021, it shifted the availability dates for several countries and locations in the US, which also saw South Africa’s ETA pushed back to 2023.

Roughly a year later, in September 2022, Starlink changed South Africa’s estimated launch date again — this time to “unknown”.

While Starlink has remained silent about its reasons for not seeking to launch here, it’s an open secret that the main reason is the uncertainty Icasa created around strict black ownership requirements for Internet service providers.

Currently, Icasa requires that companies acquiring national network infrastructure and service licences be 30% owned by historically disadvantaged groups.

However, in March 2021, it introduced new regulations that would change this requirement to 30% black-owned.

Icasa has suspended this regulation until an undetermined future date, leaving South Africa’s broadband industry stuck in limbo.

Icasa has now proposed new regulations for satellite services that will require them to register the capacity they wish to offer in South Africa.

A list of registered foreign satellite capacity providers will be published on Icasa’s website.

Foreign operators must provide a contact person and commit to keeping its data updated.

They must also provide various technical data, including orbiting parameters, frequency bands, and geographical areas to be covered.

Additionally, satellite providers will have to manage interference to protect South Africa’s radio astronomy geographic advantage area, which includes the Square Kilometre Array project.

Applicants will also be required to detail what measures they will put in place to comply with RICA — South Africa’s legal intercept law.

“RICA intends to regulate the interception of certain communications, the monitoring of certain signals and radio frequency spectrum, and the provision of certain communication-related information,” Icasa explained.

South Africa’s other network operators generally collect proof of identity and proof of address documents as part of their compliance with RICA.

While foreign operators will not be subject to South Africa’s local ownership requirements to register their capacity here, anyone selling that capacity will still need the relevant licences.

“A foreign entity will need additional radio frequency spectrum either by itself or through an already licensed Individual Electronic Communications Network Licence holder (I-ECNS) provider,” Icasa stated.

It is precisely these I-ECNS licences, as well as its I-ECS sibling, that face regulatory uncertainty over whether and how Icasa will change its BEE ownership requirements for Internet service providers.

MyBroadband recently interviewed communications minister Solly Malatsi and asked his views regarding the regulatory uncertainty around historically disadvantaged versus black ownership for ISPs and network operators in South Africa.

He explained that his department and Icasa don’t operate in a vacuum and must defer to cross-cutting regulations put in place by the Department of Trade and Industry.

However, he also said they all need to look at policy in such a way that it opens up doors for investment.

“For the South African fiscus to continue providing the social services that so many millions of South Africans are dependent on, we need to broaden the tax collection basket and revenues,” said Malatsi.

Malatsi said you can’t overtax private citizens, noting that the number of taxpayers has decreased in recent years.

“So you’ve got to be able to say, ‘How do we attract businesses to get into the economy?’ because arguably the biggest chunk of tax revenue comes from the business sector,” he said.

Therefore, if you can attract more investment, South Africa can keep funding its social programmes.

“More succinctly to your point, we are going to be proactive in looking at how we overcome regulatory interventions that suffocate the space for potential investments that can lead to job creation,” Malatsi promised.