South African mobile operators have told Parliament they would welcome Elon Musk’s Starlink as a competitor if the satellite internet provider enters the local market. However, they emphasized the need for regulatory fairness and highlighted ongoing industry challenges such as load-shedding, vandalism, and policy uncertainty, according to the Sunday Times.
During a briefing with Parliament’s portfolio committee on communications and digital technologies, major players including Vodacom, MTN, Cell C, Telkom, and Rain discussed the state of the telecommunications sector. MTN SA CEO Charles Molapisi confirmed that the company already partners with Starlink in other African markets and sees satellite providers as complementary to mobile networks.
“We see the non-terrestrial players as partners. I always say we are not fixated on one key player,” Molapisi said. “We see satellite players as one bundle. I’m sure the committee is aware that in some of our markets outside South Africa, we’ve already done partnerships with the likes of Starlink.”
Molapisi stressed that regulatory alignment and spectrum trading would help reduce costs and improve service delivery. He also raised concerns over load-shedding’s financial impact, revealing that MTN spent R4 billion over 18 months to maintain services during power outages. Vodacom SA CEO Sitholizwe Mdlalose echoed this, stating that the company spends over R3.3 million monthly on diesel during severe load-shedding.
Regulatory and Policy Concerns
The discussion also touched on the draft policy allowing telecom firms to use equity equivalents instead of traditional BEE compliance, a move seen as potentially accommodating Starlink. Vodacom emphasized the need for a level playing field, with Mdlalose stating, “Any new entrant should be subject to the same regulatory requirements that govern licensed operators.”
Committee chair Khusela Diko questioned whether regulatory parity could undermine existing BEE commitments, noting that no operator had previously cited BEE as an investment barrier. She urged Communications Minister Solly Malatsi to finalize amendments to the Electronic Communications Act (ECA) rather than relying on policy directives.
“You cannot change the law via policy directives,” Diko said. “We have been telling him, just update the law, stop taking shortcuts.”
Political and Economic Factors
The debate over Starlink’s entry comes amid broader political tensions, including Elon Musk’s criticism of South Africa’s empowerment laws. Economist Dawie Roodt suggested that despite political fallout, the government may proceed with Starlink to avoid appearing pressured by the US.
Meanwhile, industry leaders like Telkom’s Lunga Siyo and Rain’s Kgomotso Phooko stressed the importance of policy certainty for long-term investment. Cell C CFO El Kope highlighted efforts to boost black-owned supplier participation, underscoring the sector’s push for inclusivity.
As the government weighs Starlink’s entry, mobile operators remain open to competition but insist on fair regulations to ensure a balanced and sustainable telecom landscape.
“The first thing we have to understand is that we want Starlink, especially for poorer people in rural areas. But unfortunately, politics is standing in the way,” Dawie Roodt, economist at the Efficient Group told the Sunday Times.
