Starlink Poised To Enter South African Market

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Starlink looks set to start in South Africa yet it will have huge opposition from other political forces within the country. They all believe that Starlink should be handing over 30% for their Black Empowerment Initiative. This 30% has been forced on all companies investing in SA and this is just not right as the people do not benefit and only the political elite see that money. This is how Africa works and why they are not the most advanced in the world as the rich get richer and the poor get poorer.

The BEE initiative holds the country back as it does put many companies off as this has an impact on profitability. This is like a pay to play tax and surely a deal could be done where there was no 30% shareholding for the local elites and that money could be used uplifting the poor though infrastructure.

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The reality is if Starlink was Chinese it would already be operating in SA and that is the truth. Elon Musk being ex SA and a white person now living in the US has not helped.

I think this was a World Bank statistic which stated that for every 10% broadband internet coverage your country has it increases the GDP by 1% and in a middle class country that rises up to 2.4% for every 10%. South Africa has a reported 74% internet coverage at the end of 2024 and I would say that is inflated because having a poor signal should not count. The real stat lies somewhere between 50 and 60% so there is huge potential for Starlink to change peoples lives.

South Africa is a very big country when you compare it to other places and the costs of having internet availability in the rural areas is just not viable business wise for the service providers.

If any of you have travelled into the bush you will know finding any internet connectivity or cell phone signals is a major problem. I can recall having to drive many kilometers to get to the top of a hill and you had to walk around to find the signal whilst keeping your eyes peeled for wild animals.

For many people in the country as soon as you leave the national roads that link the country the further you move away the less chance you have of finding any internet services. The service providers openly admit that they cannot provide for everyone as there is no return on their investment.

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Starlink poses a major threat to the stablished businesses who do not care about those individuals with no internet access and will fund politicians to fight their case. In most case you will find those very same politicians have a vested interest via a shareholding within these companies.

The rural areas will continue to be blocked which keeps those in those areas disadvantaged. It makes no financial sense when you consider the 30% shareholding was meant for those who were previously disadvantaged whilst blocking technology which could uplift others in life.

When you think of clinics, police stations, schools, government buildings in the rural areas along with the population that lives there would all benefit from having Starlink available. This is not just another company that is manufacturing a product, but a company providing technology that is not available in those areas. There is a major difference and the politicians are smart enough to see this but allowing this as a precedent could affect their pockets in the future.

These internet service providers have a cushy existence with no major competition charging steep prices for data and connectivity. I have seen talks that Starlink are planning to offer a cell/mobile phone option in the future with no extra costs for roaming whilst travelling which would obliterate service providers as they could not compete.

I know if the price is right I would invest in purchasing Starlink because even though the current service I use now is decent the price is very high and competition would no doubt drop these prices.

Posted Using INLEO