The Independent Communications Authority of South Africa (ICASA) has laid out exactly what satellite Internet providers, such as SpaceX’s Starlink, must do to operate legally in the country.

In a Government Gazette general notice, the communications watchdog said it had received numerous requests for clarity from prospective satellite operators seeking to offer their services in South Africa.

“Accordingly, the Authority intends to provide clarity through the publication of this Notice,” ICASA said.

It explained that the licences required to provide services using a satellite constellation within South Africa were as follows:

• Individual Electronic Communications Service (I-ECS) licence
• Individual Electronic Communications Network Service (I-ECNS) licence
• Radio Frequency Spectrum licence(s)

It explained that Section 5(6) of the Electronic Communications Act stipulates that ICASA may consider and accept applications for I-ECNS licences only in terms of a policy direction from the Minister.

“Accordingly, the licensing process for the granting of the I-ECNS licence commences when the Authority publishes an Invitation to Apply (ITA),” ICASA said.

“However, an application for an I-ECS licence does not require a policy direction to be issued by the minister, and may be submitted following the publishing of an ITA by ICASA.”

It said the ITA would outline the application details, including the application fee and the submission deadline.

ICASA explained that an entity or individual wishing to obtain these licences, in the absence of a policy directive or ITA, may enter into commercial negotiations with a licensee to transfer its licence.

It added that ICASA would not be a party to these negotiations, and that the transferring licensee must lodge a transfer application for an individual licence.

Industry sources have told MyBroadband that the cost of acquiring licences from an existing licensee often exceeds R1 million per licence.

Regarding Radio Frequency Spectrum licences, ICASA said any entity that transmits a signal by radio or uses radio apparatus to receive signals requires a Radio Frequency Spectrum licence.

Unlicensed bands such as those used by Wi-Fi and Bluetooth are the exception. All other frequency bands require permission and attract annual fees.

Citing the Electronic Communications Act, ICASA said: “a radio frequency spectrum (RFS) licence is required in addition to any service licence, where the provision of such service entails the use of RFS.”

“Therefore, the holder of the RFS licences will thus also have to hold an ENCS as prescribed in the ECA,” ICASA stated.

Three scenarios for operators using satellite constellations

Despite ICASA’s clarification, much uncertainty remains about the requirements for multinationals seeking to offer telecommunications services in South Africa.

In particular, ICASA has failed to address unimplemented regulations that would force Internet and network infrastructure providers to have 30% black ownership.

These regulations would effectively supersede the requirements of the Electronic Communications Act, which requires that licensees be 30% owned by historically disadvantaged groups (HDGs).

While ICASA published the regulations on 31 March 2021, it suspended the provisions for black ownership until a future date. It has not clarified whether it will repeal or push ahead with these rules.

However, the regulator has highlighted several scenarios for satellite companies seeking to legally operate or resell services in South Africa.

Where a satellite provider wants to sell or provide services directly to customers, it needs a full suite of licences, including an I-ECS licence, an I-ECNS licence, and a Radio Frequency Spectrum licence.

If the provider wants to operate solely on a wholesale basis, it still needs the I-ECNS and Radio Frequency Spectrum licences.

However, if they later decide to sell directly to end users, they will also be required to obtain an I-ECS licence.

The third scenario is one in which a company wants to buy satellite packages from a licensed operator to resell them to the public. In this case, they don’t need full licences.

In this scenario, ICASA said companies could apply for a licence exemption under standard class licence regulations.

Source: My Broadband