Starlink’s Namibian entity, Starlink Namibia Internet Services (Pty) Ltd, only met half of the criteria required in its application for spectrum and telecommunications service licenses.
This came to light during a press conference held yesterday at the Government Information Centre (GIC) by the minister of information and communication technology, Emma Theofelus, and the chairperson of Cran’s board, Prof. Tulimevava Kaunapawa Mufeti.
According to Mufeti, Starlink failed to comply with local laws in operating in Namibia without a valid service license. “Starlink’s contravention of the Communications Act and failure to respond to the Authority’s summons shows a total disregard for the governance framework of the sector and raised doubt on Starlink’s ability to honour license conditions in future. Accordingly, the Authority concluded that Starlink did not meet the criteria due to penalties imposed for illegal transmission,” Mufeti said at the GIC yesterday.
Cran also found that foreign ownership could impede Namibia’s ability to exercise jurisdiction over the entity.
“The requirement for Namibian ownership and control serves to ensure that telecommunications service providers remain subject to domestic jurisdiction and are fully accountable to national authorities. Starlink’s proposed business model - based on satellite-delivered services with 100% foreign ownership - raises material regulatory considerations concerning jurisdiction, enforceability of compliance obligations, and the ability of the Authority to exercise effective oversight as required under the Act,” she said.
Theofelus confirmed that an application for the exemption from requirements of 51% local ownership was received on 1 July last year, but according to Mufeti’s statement such an exemption was not afforded to Starlink.
While Theofelus concedes that connectivity costs in Namibia are high, she shares her belief that allowing Starlink to operate in Namibia would not have made a direct, material difference to those most in need of internet connectivity.
“There's a clear indication that if you convert the money they proposed in the application to Namibian dollars, on average you're expecting a terminal to cost around N$5 000 to N$6 000 as a once-off cost. Then the monthly cost when you convert the U.S. dollars to Namibian dollars that they provided in the application could easily average between N$900 to N$1 000 that you need to pay for the terminal to get their unlimited internet. Of course, this is doable for many sections of our community, but it does not actually respond to the communities who might not otherwise afford the current cost of data,” Theofelus said.
She, however, insists that the ministry is willing to investigate technologies that address these issues.
“We are cognizant of the fact that one terminal can service multiple users from institutions to individuals, but we did not see a direct correlation that once we actually approve Starlink and that their terminals are available in the country at that marginal cost of immediate investment for the terminal to be shipped to the country and the monthly cost that we would achieve 100% connectivity, for example. That is still something we'll continue to monitor as Starlink has committed to revise their model to also try to reach the most vulnerable communities who might not otherwise be able to afford those costs, especially in a developing country like ours,” the minister continued.
Earlier this year, the LEO internet provider OneWeb received approval from Cran to operate in Namibia.
In August last year when OneWeb made its submissions with regards to this approval, the cost of a OneWeb terminal was estimated at N$90 000 and about N$4 000 per month for services.
Cran found that Starlink operations in Namibia would have contributed to fostering a competitive telecommunications industry in Namibia, but noted concerns for a lacking physical presence and direct economic investment in Namibia. Cran, however, considers Starlink to have met the criteria for competition.
The Authority also determined Starlink capable of financial and technical requirements and noted that no implications would come from allowing Starlink the necessary spectrum to operate.
– irene-mari@nmh-hub.com.na
