CRAN rejects Starlink licence over ownership, security concerns

The Communications Regulatory Authority of Namibia (CRAN) has formally rejected an application by Starlink Internet Services Namibia to operate in the country, citing failure to meet key legal and regulatory requirements, including ownership rules and national security considerations.

The announcement was made yesterday at a press conference hosted by information and communication technology minister Emma Theofelus and CRAN board chairperson Tulimevava Mufeti.

The decision follows a comprehensive assessment of Starlink’s bid for a class comprehensive telecommunications service licence and a spectrum licence for fixed satellite services, submitted in June 2024.

CRAN found that Starlink met only three of the six mandatory criteria required under the Communications Act, making the application legally untenable.

The satellite internet provider satisfied requirements related to competition, technical and financial capacity and frequency availability, the regulator noted.

CRAN acknowledged that Starlink’s low-earth orbit (LEO) satellite technology could help bridge connectivity gaps, particularly in rural and underserved areas where traditional infrastructure is costly.

However, these positives were outweighed by failures in three critical areas: ownership and control, national security compliance and regulatory conduct.

"The applicant met only three of the six criteria," Mufeti said yesterday. If an applicant fails in one of the criteria, they stand to have their application declined.

Foreign ownership a decisive factor

Central to CRAN’s rejection was Starlink’s failure to comply with Namibia’s ownership requirements. The company is wholly foreign-owned and did not secure an exemption from the legal requirement mandating at least 51% Namibian ownership in telecommunications licensees.

CRAN stressed that local ownership is not merely a formality but a cornerstone of regulatory oversight, ensuring that operators remain accountable to domestic laws and authorities.

“The requirement for Namibian ownership and control serves to ensure that telecommunications service providers remain subject to domestic jurisdiction,” the authority noted.

National security and oversight concerns

The regulator also flagged concerns around national defence and public security, particularly relating to data sovereignty and enforceability of regulatory obligations.

Starlink’s satellite-based model, combined with its foreign ownership structure, was deemed to raise “material regulatory considerations” around jurisdiction, compliance enforcement and effective oversight.

CRAN concluded that the application did not adequately satisfy requirements tied to safeguarding national interests and ensuring lawful interception, consumer protection and regulatory compliance.

CRAN found that the company had previously contravened the Communications Act by operating a telecommunications service in Namibia without a valid licence.

The authority also cited Starlink’s failure to respond to a regulatory summons, describing this as a “total disregard for the governance framework of the sector” and raising doubts about its willingness to comply with licence conditions in future.

Because a spectrum licence cannot legally be issued without a valid telecommunications service licence, CRAN also rejected Starlink’s accompanying spectrum application.

Create a new model

While Theofelus conceded that connectivity costs in Namibia are high, she said allowing Starlink to operate in Namibia would not have made a direct, material difference to those most in need of internet connectivity.

She explained that it is estimated that a terminal would cost around N$5 000 to N$6 000 upfront, with monthly subscriptions of N$900–1 000.

"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,” she noted.

Theofelus stressed, however, that the ministry is keen to investigate technologies that address these issues.

The minister acknowledged that a single Starlink terminal could serve multiple users, but warned that approving the service would not automatically guarantee nationwide connectivity, citing the costs of the terminals and monthly subscriptions as potential barriers.

"That is still something we'll continue to monitor as Starlink has committed to revising 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,” she said.

Door remains open

Despite the rejection, CRAN noted that Starlink, or any aggrieved party, may request reconsideration of the decision within 30 days from 23 March.

The regulator emphasised that its decision was bound strictly by law, stating that approving a non-compliant application would be inconsistent with the Communications Act.

CRAN reiterated its support for the expansion of LEO satellite technology, recognising its transformative potential in improving connectivity across Namibia.

“The authority will continue to champion the deployment of LEO satellite technology and other emerging innovations as critical pillars to achieve universal connectivity,” it said.

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