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SpaceX’s Starlink satellite broadband service has become operational in South Africa, even though the company has not been granted an operating license. Acquiring a license is a significant challenge for Starlink as it does not comply with South Africa’s Broad-Based Black Economic Empowerment program (BBBEE), which is designed to enhance the economic participation of black individuals in the country’s economy.

South Africa’s Electronics Communications Act (ECA) stipulates that historically-disadvantaged groups (HDGs) must own at least 30 percent of a company before it can obtain the necessary telecom licenses to operate a broadband service locally. To address this requirement, Starlink could establish a subsidiary business that satisfies regulators.

However, the situation is further complicated by the Independent Communications Authority of South Africa (ICASA) insisting that a local supplier, IT Lec, ceases selling Starlink equipment. ICASA sent a letter to IT Lec, a Northern Cape-based IT company that serves rural customers with limited access to other broadband providers, demanding that it stops acquiring, distributing, and facilitating the sale of any Starlink products that provide satellite access to the services.

Reports suggest that IT Lec has already supplied Starlink equipment to approximately 2,600 clients. To continue serving South African customers without interruption, IT Lec plans to operate from Mozambique, where Starlink is licensed. This strategy allows them to bypass the regulatory challenges faced in South Africa.

Despite not having obtained an operating license and failing to comply with BBBEE regulations, SpaceX’s Starlink satellite broadband service has managed to establish its presence in South Africa. However, the company will need to navigate these regulatory complexities to ensure its long-term sustainability and compliance with local requirements.

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