The Independent Communications Authority of South Africa (ICASA) yesterday heard divergent views from stakeholders on its proposed licensing framework for satellite services.
The telecoms regulator is conducting the hearings this week as part of its mandate to develop a transparent regulatory framework with clear rules, to establish regulatory certainty for potential investors in the space.
It also seeks to develop procedures for authorising user-terminals operations in South African territory and to review spectrum fees, also taking into account the increasing amount of bandwidth used by satellite systems operating in higher frequency bands.
ICASA also intends to develop a procedure for registration of international space segment providers – including details of the International Telecommunication Union (ITU) coordination status of the space segment – which intend to provide a service either directly or indirectly (through existing licensed operators) to South African consumers.
Several stakeholders presented the pros and cons of the proposed framework to the ICASA panel.
However, one notable absentee from the hearing was Elon Musk’s SpaceX, whose representative did not show up, although the company had been scheduled to present.
South Africans are eagerly awaiting SpaceX’s Starlink satellite service, but its arrival is still up in the air as a result of broad-based black economic empowerment (B-BBEE) requirements it has to comply with before receiving an operating licence from ICASA.
Nonetheless, Brandi Oliver, Starlink’s manager of global licensing and market activation, recently made a written submission to the regulator, saying one subject the consultation did not address is the ability for all satellite operators to hold individual licences to provide their services directly to the consumer.
“Under the current South African regulatory system, companies providing services directly to end-users must hold I-ECNS and I-ECS licences, which require at least 30% shareholding by historically disadvantaged groups,” said Oliver.
“However, many foreign satellite operators, particularly those with direct-to-consumer business models, have global policies that prevent local shareholding, thus excluding them from the South African market. This holds true even when these operators are willing to comply with B-BBEE requirements and invest in initiatives that directly benefit the target communities.”
Level playing field
Phila Sithole, head of industry research at the Association of Communications and Technology (ACT), presented on behalf of the industry body, which advocates for the interests of South African mobile operators.
He noted that in line with ICASA’s obligations as an administrative body, the ACT anticipates a transparent process in the development of the regulatory framework that will provide certainty for satellite services and all network operators in South Africa.
“We maintain that ICASA has not clarified the reason to institute the section 4B inquiry approach for a new licensing framework for satellite services,” said Sithole. “ACT advocates for a level playing field, technology-neutral approach and a competitive market.”
He explained that global regulatory standards frequently stress the importance of equitable market access.
“This philosophy advocates for regulatory frameworks that permit various technological solutions (such as terrestrial and satellite systems) to function under uniform guidelines (a level playing field), thereby fostering an equitable competitive landscape and stimulating market rivalry,” Sithole said.
“These guiding principles are designed to facilitate impartial market entry and attract a diverse array of service providers, a strategy that has gained widespread acceptance among international regulatory entities like the ITU, as well as in the regulatory structures of regions such as Europe and North America.”
According to Sithole, existing licensees have invested millions of rands to ensure compliance with local legislation and regulation.
“A sudden change to selected parts of the regulatory regime may render their investments sunk, putting them at a disadvantage to new market players and would deter future investments.
“Considering the benefits of having a Gateway Earth Station built in-country, which results in improved connectivity and services, and the economic benefits of having such an asset in the country with its associated creation of high-skilled jobs, ICASA should rather consider how its regulatory framework could be improved to make SA a preferred investment destination,” Sithole noted.
Call for simplicity
Judi Sandrock, co-founder of the non-profit Meta Economic Development Organisation, begged ICASA to make satellite services widely available, especially in SA’s rural areas.
She urged the regulator to simplify licensing for satellite services to accelerate deployment, and called for the rapid deployment of technology in remote areas with minimal infrastructure requirements.
“ICASA must introduce tiered fee structures for satellite to encourage community-focused connectivity projects, and limit fee and price increases for 10 years. Treat satellite technology as critical national infrastructure – without it we fall behind,” Sandrock said.
On the benefits of satellite services to rural communities, she said the technology enables local entrepreneurship, as well as agricultural and small business growth through e-commerce.
“It also creates remote work opportunities and reduces youth migration to cities, while supporting skills development and digital literacy.”
She added that in the age of artificial intelligence, satellite connectivity is critical to access digital learning and development platforms.
“Educators can cover more subjects by giving access to learning materials, not having to teach subjects directly. We have a shortage of educators in rural areas.”
The hearings are continuing this week.
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