Starlink internet must face public licence review

The government will soon decide on the fate of Elon Musk’s Starlink licence application, following the public’s input.

The Communications Regulatory Authority of Namibia (Cran) will on 28 November publish the full application of the United States-based internet operator, owned by Elon Musk.

After this, the government will decide whether to grant the licence.

The Namibian understands that Starlink is appealing the government’s decision to block its entry to Namibia.

This is said to have led to the public consultations.

Cran spokesperson Mufaro Nesongano yesterday said this follows minister of information and communication technology Emma Theofelus’ decision on an ownership exemption linked to Starlink’s application.

“A comprehensive evaluation of the application will then be undertaken to determine its compliance with all licensing criteria set out in the Communications Act, including ownership,” he said.

The application by Musk’s Space Exploration Technologies, or SpaceX, also known as Starlink, has been collecting dust since June last year.

It aims to provide internet connectivity to the tourism sector in the Zambezi region.

Theofelus two weeks ago on social media said her ministry has finalised Starlink’s application.

“We have concluded the Starlink application and we have informed them of the outcome,” she said.

Theofelus met with Musk in New York last year.

At the time she indicated that Starlink would need to surrender 51% of its operations in Namibia to operate without local partners.

Starlink’s arrival in Namibia could challenge government-owned internet service providers such as MTC and Telecom Namibia.

Theofelus was not available for comment yesterday.

‘REGRESSIVE’

Economist Rowland Brown says it would be an “unfortunate and regressive” decision if Starlink is denied entry to the Namibian market.

“This unfortunate decision would yield net-negative results for Namibia, and create an unnecessary setback for growth, employment and development,” he says.

“It would be deeply socialist, with the state involving itself in a consensual transaction between two parties with no negative externalities, simply for ideological reasons,” he says.

He says history shows that socialist policy is a complete failure.

“Secondly, denying a country access to the best and most modern technology has never been beneficial to that country, especially to its global competitiveness, something Namibia already struggles with,” Brown says.

Thirdly, he says, the net-effect of this policy on job creation would be negative at a time when Namibia desperately needs jobs.

“While some jobs in the telecommunication industry may be temporarily protected by these measures, the creation of further rural jobs and broader efficiency would be undermined,” Brown says.

He says fewer tourism and agriculture jobs would be created, and rural investment would be less competitive.

“Finally, access to high-quality internet would remain the privilege of the urban and more wealthy, while rural and less wealthy people will have less direct access, as well as the indirect benefits of access such as better educational facilities and medical services,” he says.

‘MADNESS’

Internet expert Paul Rowney yesterday said it would be “madness” to reject Starlink, because the benefits outweigh the risks.

“If Namibia rejects it, it would be following South Africa’s madness for the wrong reasons, because they have rejected it as well. Zambia, Kenya and Democratic Republic of Congo have all allowed it,” he said.

He said Starlink would not replace mobile operators or phase them out of the market, but create a niche, some level of competition, and connectivity for schools, clinics and hospitals.

“The benefits outweigh any rationale or reason,” he said.

Rowney said Starlink should be allowed to operate for at least two years as it would not cost Namibia anything.

He said Starlink’s high-speed, low-latency services are useful on a continent where many rural areas have poor or non-existent connectivity.

Namibia’s Communications Act provides insight into the application process Starlink must undergo.

Cran is allowed to issue a Namibian citizen or a legal entity of which at least 51% is beneficially owned by Namibian citizens an operating licence, and “which is not controlled directly or indirectly by persons who are not Namibian citizens and which has its principal place of business or registered office in Namibia”.

However, the minister may authorise a broadcasting licence to such an entity, even if Cran has rejected this.

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