Lodges in remote areas of Namibia are bitterly disappointed. The Communications Regulatory Authority of Namibia (CRAN), has rejected Starlink's application for an operating license in Namibia.
Starlink, owned by US billionaire Elon Musk, offers internet via satellite. This would be a particularly good option for sparsely populated rural areas of Namibia. None of the state-owned or private telecommunications companies in Namibia offer comparable internet services.
At a press conference, CRAN explained its decision: Starlink failed to meet three of the six criteria. The subsidiary, established in Namibia, is 100 percent foreign-owned. However, The Communications Act requires a Namibian stake of at least 51 percent. While the line ministry can grant an exemption, it has not done so in this case.
Due to ownership structures, Namibia has no means to exercise effective oversight, according to CRAN. Furthermore, Starlink had already offered its services without a license and ignored official summonses. Now Starlink has the option to submit a new application within 30 days.
Within Namibia's tourism industry, accommodations in remote areas such as the Zambezi Region and Sossusvlei have expressed particular disappointment. They have long complained about weak and expensive internet connections.
The two state-owned telecommunications companies, MTC and Telecom Namibia, as well as the private company Paratus, have so far focused on towns and villages. Laying cables or building transmission towers is very expensive, especially in a country as vast as Namibia. MTC primarily uses its towers for mobile phone service.
Lodges of the Gondwana Collection have been investing in their own solution for years. They utilise Telecom Namibia's service in the nearest town or village. From there, the data connection runs via its own transmitters, installed by Gondwana on existing towers for a fee.
However, the bandwidth is limited. Furthermore, Telecom shares the capacity among multiple customers. If many users are active on a single line simultaneously, the speed naturally decreases.
MTC criticised the offer from its unwelcome competitor, Starlink, arguing that it is unaffordable for the majority of Namibians. Indeed, it is primarily aimed at businesses. The price discussed was around N$ 6,000 for the receiving equipment (currently just over € 300; amount at the current exchange rate, N$ 1 = ZAR 1).
The monthly fee was expected to be N$ 1,000 (just over € 50). For comparison, MTC's package offers five times the upload speed but significantly slower download speeds, at 20 times this price.
Not permitted for internet use in Namibia: Starlink satellites, whose movement is made visible with a 2-second exposure. Photo (2020, Georgia): Jud McCranie Wikimedia