Elon Musk's company takes one small step forwards towards obtaining a licence in SA

“The wheels just don’t move that fast.”

This was the short and direct response by one of the respected figures in the local ICT sector on Elon Musk-owned SpaceX’s controversial quest for a licence to operate the much-talked-about Starlink satellite service in South Africa.

The company has made a formal submission to the South African authorities asking to be granted a licence via the equity equivalent investment programmes (EEIPs) route instead of the Broad-Based Black Economic Empowerment (BBBEE) avenue.

Paul Colmer, an executive committee member of the Wireless Access Providers' Association (WAPA), repeated his views on the issue which are based on deliberations at the association's Wapaloza conference a couple of months ago, where the accepted view was that there would need to be a change in legislation - which takes time.

Responding to reports that Starlink was aiming to launch in time for the G20 conference in November, Colmer told Pretoria News after his association's WAPALOZA industry conference in June that the “wheels of government don’t mill that fast”. He estimated that it would take about two years for the required legislative process to be concluded.

Colmer was commenting after President Cyril Ramaphosa and Communications and Digital Technologies Minister Solly Malatsi denied that the existing regulations were being amended to accommodate Starlink.

At the WAPALOZA Dominic Cull, a respected regulator at communications legal advisory firm Ellipsis, made the point during his presentation that changes to legislation, policy and regulations in South Africa takes a couple of years.

Dislike for BBBEE

While Musk has been vocal about his aversion for B-BBEE laws, his company seems to have changed tack and has sent a letter – acknowledged without public comment by the government – making its case for being allowed to go the EEIP route.

The company still maintains its stance against the BBBEE 30% black local ownership requirement, and points out that one of the Independent Communications Authority of South Africa’s (Icasa’s) criteria for the telecommunications industry differed fundamentally from those set for the ICT sector.

In its submission letter the company argues that the difference creates “significant regulatory uncertainty and complexity” in the market for both the existing and potentially new participants.

It also argues that Icasa has the power to either use the 30% ownership criteria or impose other conditions.

As part of its EEIPs, the company has promised hundreds of millions of rands' investments to provide rural schools in South Africa with free internet services.

However, Colmer has said previously that, as things stood, to “sidetrack” the BBBEE requirements there would need to be a change in legislation, which is a “long process”.

He said there were other ways Starlink could speed up its entry into South Africa, including through partnering with local entities that already have the required BBBEE status, but Musk  and Starlink reportedly "really, really do not like the idea of middle-men".

Minister 'embracing innovation'

Meanwhile, Malatsi is expected to shed more light on this subject when he delivers the keynote address at a conference starting today in Pretoria.

Malatsi was expected to speak on “Embracing Innovation Through Digital Technologies”, according to a statement from the South African chapter of ISACA.

“He will highlight the importance of strong leadership, inclusive policymaking, and partnerships between government and the private sector. Minister Malatsi is a firm believer in the power of emerging technologies to drive economic growth, close the digital divide and improve public service delivery,” said the multi-national organisation that goes by the acronym ISACA but was originally known as Information Systems Audit and Control Association.