{"id":815403,"date":"2026-10-27T11:36:08","date_gmt":"2026-10-27T11:36:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/815403\/"},"modified":"2026-10-27T11:36:08","modified_gmt":"2026-10-27T11:36:08","slug":"us-ambassador-says-elon-musks-28-million-starlink-offer-for-5000-south-african-schools-remains-stalled-by-ownership-rules","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/815403\/","title":{"rendered":"US ambassador says Elon Musk\u2019s $28 million Starlink offer for 5,000 South African schools remains stalled by ownership rules"},"content":{"rendered":"<p>&#13;<br \/>\n        Ambassador Leo Brent Bozell III said the South African-born billionaire was unwilling to surrender part of the <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/starlink-operations-in-africa-a-look-at-its-success-and-regulatory-hurdles\/tq39c2x\" id=\"39e7736e-8bec-4305-a426-8323f4a1e35e\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">satellite-internet business<\/a> as a condition for entering the market.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/elon-musks-starlink-slashes-hardware-prices-in-nigeria-by-45\/6yv5418\" id=\"03e8172e-a1a2-4133-9692-a00f16243289\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">Starlink\u2019s <\/a>documented proposal involves an investment of approximately $28 million (R500 million) to connect more than 5,000 <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/only-40-of-africans-have-access-to-the-internet\/b8f9qz4\" id=\"c45e0747-b323-46c3-93b4-826f8aa0807a\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">rural schools<\/a>, potentially reaching an estimated 2.4 million pupils each year.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        The programme would provide Starlink equipment and broadband service while using <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/lifestyle\/10-most-valuable-companies-in-south-africa-in-2024\/7w8y16n\" id=\"e895d394-7bdf-4e27-a9c7-b3ec47ecd3ae\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">South African companies <\/a>to support installation and maintenance.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Mr Bozell raised the dispute during an interview with The Common Sense\u2060, although he referred to 500 schools rather than the more than 5,000 contained in Starlink\u2019s formal proposal.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        \u201cHe said no, and he walked away from it,\u201d Mr Bozell said while describing Mr Musk\u2019s response to the ownership requirement.&#13;\n    <\/p>\n<p>                &#13;<br \/>\n                &#13;<br \/>\n                    &#13;<br \/>\n                        &#13;<br \/>\n                    &#13;<br \/>\n&#13;<br \/>\n                    <img width=\"790\" height=\"445\" alt=\"US Ambassador Leo Brent Bozell III [right] with Gabriel Makin (left)The Common Sense host. Mr Bozell says South Africa\u2019s ownership requirement has stalled Starlink\u2019s entry. [Image via US Embassy]\" title=\"US Ambassador Leo Brent Bozell III [right] with Gabriel Makin (left)The Common Sense host. Mr Bozell says South Africa\u2019s ownership requirement has stalled Starlink\u2019s entry. [Image via US Embassy]\" class=\"image lazyloaded imgWithMetaData\" src=\"data:image\/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'790'%20height%3D'445'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E\" data-original=\"https:\/\/ocdn.eu\/pulscms-transforms\/1\/oPcktkqTURBXy8xZTk0MWU0NTY0MWMzM2FjMGZlYTRhYmViMjM4OTVlMC53ZWJwkZUCzQMWzQG9wsM\" fetchpriority=\"low\" decoding=\"async\" loading=\"lazy\"\/> &#13;<\/p>\n<p>&#13;<br \/>\n        The ambassador did not say that he had discussed the proposal directly with Mr Musk. His account of the billionaire\u2019s decision is therefore based on his understanding of the negotiations.&#13;\n    <\/p>\n<p>&#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                            &#13;<br \/>\n                                                &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n                                                    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n    &#13;<br \/>\n        Starlink proposes an alternative to equity ownership&#13;<br \/>\n    &#13;<br \/>\n&#13;<br \/>\n&#13;<br \/>\n                                                &#13;<br \/>\n                                            &#13;\n                                        <\/p>\n<p>&#13;<br \/>\n        South Africa\u2019s telecommunications rules require certain licence holders to place 30% of their local equity in the hands of groups disadvantaged under apartheid.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        In a<a href=\"https:\/\/starlink.com\/public-files\/Starlink_Equity_Equivalence.pdf\" id=\"bb8fcd37-621a-4d8f-b315-606d4fb61665\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\"> June 2025 letter<\/a>\u2060 to Trade, Industry and Competition Minister <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/south-africa-targets-increased-foreign-direct-investment-in-2025\/3g6t1d8\" id=\"165ea1a8-6f36-4fd0-950d-9798ddf771e1\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">Parks Tau<\/a>, the company said it had not asked for exemption or special treatment.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        It proposed investing directly in rural connectivity, local businesses and education while retaining ownership of its South African operation.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        \u201cIf EEIPs are recognised for individual licence holders, Starlink would immediately apply for its necessary licences in South Africa,\u201d Ryan Goodnight, Starlink\u2019s senior director for market access, wrote.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        The proposed programme would provide fully funded Starlink kits and service to rural schools while supporting installation and maintenance through local companies.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        South Africa has already moved towards recognising equity-equivalent investments in the communications sector. Communications Minister <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/communications-minister-solly-malatsi-withdraws-sabc-bill\/t5w6x4j\" id=\"7a78e79b-6e37-463c-8ba9-d6f49967fc8f\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">Solly Malatsi<\/a> issued a policy direction in December 2025 calling for such programmes to count towards empowerment requirements.&#13;\n    <\/p>\n<p>&#13;<br \/>\n        Mr Malatsi said the change was intended to attract investment and extend <a href=\"https:\/\/www.google.com\/search?q=https:\/\/africa.businessinsider.com\/local\/markets\/south-africa-leads-sub-saharan-africa-in-5g-adoption-and-connectivity\/z3h4gq7\" id=\"0b06193e-10c7-4b2e-be9e-6bdf11e3a9f5\" data-link-role-code=\"open_new_tab\" target=\"_blank\" rel=\"nofollow noopener\">broadband coverage <\/a>without weakening the country\u2019s transformation policy. The government also said the measure was not created solely for Starlink. &#13;\n    <\/p>\n<p>&#13;<br \/>\n        South Africa remains one of the continent\u2019s largest potential markets, but Starlink has yet to secure the licences required to operate formally in the country.&#13;\n    <\/p>\n","protected":false},"excerpt":{"rendered":"&#13; Ambassador Leo Brent Bozell III said the South African-born billionaire was unwilling to surrender part of the&hellip;\n","protected":false},"author":2,"featured_media":815404,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[90,416,56,54,55],"class_list":["post-815403","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-science","tag-space","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/815403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=815403"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/815403\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/815404"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=815403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=815403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=815403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}