Mathatisi Sebusi
THE Lesotho Communications Authority (LCA) is facing mounting pressure from local advocacy group, Advocates for the Supremacy of the Constitution (commonly known as Section 2), and others to reject billionaire Elon Musk’s application to provide internet services in Lesotho through his company, Starlink.
Section 2 argues that Starlink should not be granted an operating license because it lacks local shareholding.
This after the LCA issued a public notice on 20 February 2025 inviting the public to submit either their objections or supporting views regarding Starlink’s application to the regulator on or before 20 March 2025.
Section 2 insisted that the absence of Basotho ownership in the company could exclude locals from the economic benefits of telecom operations, including profit-sharing, job creation, and decision-making influence over service priorities tailored to local needs.
Section 2 Secretary-General, Tjatjapa Sekabi, told the Sunday Express on Friday that Starlink’s submitted documents indicate it is wholly owned and controlled by US citizens.
He warned that this ownership structure deviates from the norm in Lesotho’s telecommunications sector, where local participation has been prioritized.
He said the absence of local ownership departed from the established practice of ensuring Basotho participation in the telecommunications sector.
Section 2’s stance draws on the examples of Econet Telecom Lesotho (ETL) and Vodacom Lesotho (VCL) to highlight why local ownership matters and why Starlink’s fully foreign-owned structure raises concerns.
He said the telecommunications sector in Lesotho had long maintained a balance between foreign investment and local participation. For instance, ETL is 70 percent owned by Econet Wireless Global, while the government of Lesotho retains a 30 percent stake. The Vodacom International Holdings owns 80 percent of Vodacom Lesotho while local company, Sekhametsi Investment Consortium, own the remaining 20 percent.
The precedents set by ETL and VCL demonstrate that foreign companies can operate successfully in Lesotho while partnering with local stakeholders to ensure that the wealth generated benefits the nation’s development.
Mr Sekabi also noted that the lack of local ownership in Starlink could weaken accountability to Basotho consumers. He said that with local stakes in ETL and VCL, the government and citizens have leverage to influence service quality, pricing, and coverage in underserved areas.
He warned that a fully foreign-owned Starlink may prioritize global corporate goals over Lesotho’s unique challenges, such as connectivity in mountainous regions where local input has proven vital.
He urged the LCA to require Starlink to allocate at least 20 to 30 percent of its shares to Basotho, either through the government or a local consortium, as a condition of approval. He acknowledged that the Communications Act of 2012 does not explicitly mandate local ownership for all telecom licenses. However, the consistent inclusion of Basotho stakes in major operations like ETL and VCL reflects a policy preference that has served Lesotho well.
Mr Sekabi argued that granting a license to Starlink without addressing this ownership gap could undermine this approach and set a precedent that diminishes local participation in future telecom investments.
Responding to the concerns in an interview with the Sunday Express, the LCA Public Affairs Manager, Mothepane Kotele, acknowledged that the Authority was facing a difficult situation.
She revealed that many individuals and organizations had approached the LCA to object to Starlink’s application, citing ownership concerns.
However, she stressed that the Communications Act of 2012 did not explicitly require local ownership for telecom licenses.
“This is a challenge because, despite the concerns presented to us, we cannot penalize a company without a legal provision that allows us to question its ownership.
“However, Consultations are ongoing, and once they are completed, we will be able to determine the way forward,” Ms Kotele said.