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Starlink application stuck in local ownership condition clause

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Chamwe Kaira 

Starlink’s application to operate in Namibia remains unresolved, as the process is tied up in local ownership requirements.

Communications Regulatory Authority of Namibia (Cran) chief executive officer, Emilia Nghikembua, said the regulator cannot finalise the company’s telecommunications service licence until the minister of information and communication technology decides on an ownership exemption request.

“Starlink submitted an application for a telecommunications service licence in June 2024. One of the criteria is that an applicant must be 51% Namibian owned and controlled,” Nghikembua said. 

In November 2024, Cran issued a cease-and-desist order to Elon Musk’s satellite internet provider, Starlink, for operating in the country without a licence.

Starlink, the satellite unit of SpaceX, had operated in several African countries but faced regulatory challenges and resistance from state telecom monopolies.

“The Communications Act (No. 8 of 2009) further provides that if an applicant does not meet this criterion, they must apply for exemption from the Minister of ICT. Since Starlink is 100% foreign owned and controlled, Starlink applied for exemption to the Minister of ICT. To this end, the authority cannot finalise the licence consideration until the Minister of ICT pronounces herself on the ownership exemption application.”

She explained that while Cran handles the licence process, the exemption decision rests with the minister. 

“However, the licence application can only be finalised once the ownership exemption application has been duly considered. In this instance, the application may take longer considering that CRAN must first wait for the ownership exemption application to be finalised by the Minister of ICT,” she said.

Earlier this year, the Economic Policy Research Association said Starlink’s entry into Namibia’s market would boost competition, improve service quality, and lower costs for consumers. 

Namibia has already climbed global rankings on data affordability, moving from 46th place in early 2022 to ninth place in early 2024 for the cost of one gigabyte of data.

Starlink, created by Elon Musk’s company SpaceX, delivers high-speed satellite internet to underserved and remote regions worldwide. 

The service relies on a constellation of thousands of low-earth orbit satellites. It has more than 7 800 active satellites and approval for up to 42 000. Starlink is already live in over 20 African countries, including some of Namibia’s neighbours.

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Namibia’s push for improved internet connectivity recently hit a snag as Starlink’s application to operate in the country remains unresolved. The Communications Regulatory Authority of Namibia (Cran) is currently waiting for the minister of information and communication technology to rule on Starlink’s ownership exemption request. Regulations mandate that any applicant for a telecommunications service licence must be 51% owned and controlled by citizens of Namibia. Starlink, a company under Elon Musk’s SpaceX, is fully foreign-owned, prompting them to seek an exemption. However, the process has taken longer than anticipated, leaving potential subscribers in limbo. Cran’s cease-and-desist order, issued when Starlink first attempted to operate without a proper licence, highlights the regulatory hurdles businesses face in entering emerging African markets.

In many respects, the country’s ambitious digital strategies are fostering a supportive environment for accelerated growth. As broadband access expands and essential data costs drop, more entrepreneurs and consumers see online services as an integral part of daily life. The Economic Policy Research Association noted that Starlink’s arrival could revolutionize the nation’s satellite internet offerings and further strengthen local competition. Should the minister grant the ownership exemption, Namibians may benefit from reduced latency internet speeds, new market entrants, and improved infrastructure. Yet, technological advancements often arrive hand in hand with regulatory complexities, which in this case highlight the delicate balance between welcoming global innovators and safeguarding national interests. Despite these challenges, the nation’s upward climb in global data affordability rankings reflects an eagerness to adopt modern solutions. This collective momentum underpins a promising vision of connectivity, where local empowerment and international partnerships go hand in hand.

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