SpaceX wants to operate its Starlink internet service in the country by offering an equity-equivalent program as an alternative to the 30% Black ownership rules.
SpaceX has reportedly called for changes to South Africa’s rules around the ownership of telecom companies.
According to a Bloomberg report citing a letter sent by SpaceX to the South African government, the space startup wants to operate its Starlink internet service in the country by offering an equity-equivalent program as an alternative to the 30% Black ownership rules.
While SpaceX is currently not a publicly listed company, retail sentiment on Stocktwits was in the ‘bullish’ territory.
SpaceX said in its letter that the equity-equivalent program it suggested would help extend regulatory certainty while encouraging investment in infrastructure. “Uniform empowerment regulation will motivate both current and prospective operators to expand their business activities and network reach,” the company said, according to the report.
The country’s Department of Communications and Digital Technologies has reportedly asked the telecom regulator to offer an alternative to companies in the sector that would allow them to invest in infrastructure and digital inclusion initiatives.
The report added that this deal would be similar to the one offered to car makers in 2019, wherein companies such as Ford Motor Co., Toyota Motor Corp., and others created a fund to induct disenfranchised groups in the industry.
Similarly, Starlink has offered to extend free satellite internet service to 5,000 schools and provide 2.4 million students with high-speed connectivity in lieu of the Black ownership requirements. “Starlink is not seeking any type of special treatment, as these changes would apply to all current and future potential operators,” the company said on its South Africa website.
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