Elon Musk backed firm wants to set in Botswana -BOCRA depends on traditional telcos for survival
Botswana Communications Regulatory Authority (BOCRA), the regulator of internet services and Information and Communications Technologies (ICT) sub sectors is currently facing a test of its mettle to deliver on its mandate, following an application for internet services provision license by Starlink.
Starlink is a trail blazing internet service provision provider, operating under SpaceX, which is owned by South African born-billionaire, Elon Musk. This week, one source, with intimate knowledge of the industry, told Botswana Guardian that, traditional regulatory bodies in the ICT and internet services providers sub sectors (such as BOCRA) are facing an unprecedented challenge on how to ‘fairly adjudicate applications from innovative disruptors like Starlink while balancing their reliance on revenue from established telecommunications companies’. Botswana Telecommunications Corporations, Mascom Wireless and Orange Botswana, are just some of the country’s major telecommunications companies, who contribute in large to BOCRA’s turnover fees. The source assertion that BOCRA, like many other regulators depends on turnover fees from traditional telecommunications giants, as it is also confirmed by the regulator’s latest annual report. BOCRA's annual report for the fiscal year, reveals revenues of P185, 855,719. The bulk of this substantial revenue, a staggering P102, 895,472, is derived from turnover fees levied against telecommunications companies. In addition, the Universal Access and Service Fund (UASF) Levy contribution, amounting to P44, 080,599, also primarily relies on contributions from telecommunications companies. In fact, telecommunications companies are responsible for a substantial 79 percent of BOCRA's revenues. In contrast, sectors like postal services and broadcasting contribute a mere 1% to BOCRA's income, highlighting the authority's significant reliance on traditional telecommunications revenue streams. “This reliance on established telecom entities places BOCRA in a precarious position when evaluating Starlink's license application,” said a source. On Wednesday afternoon, BOCRA's Director of Broadcasting and Corporate Communications, Aaron Nyelesi confirmed they received the application from Starlink as far back as May 2023. “The application is undergoing assessment,” Nyelesi said, furthermore adding it will be improper to discuss an applicant’s license status with third parties. On suggestions that BOCRA might be experiencing a dilemma on deciding on the Starlink license application, given the fact the regulator depends heavily on turnover fees from traditional telecommunications firms, Nyelesi said: “BOCRA operations are guided by the Communications Regulatory Authority Act, 2012 which enshrines it with the responsibility to effectively regulate the sector while protecting and promoting the interests of consumers, which in essence requires impartiality and prudence on the part of the Regulator.” While BOCRA is yet to issue a license to Starlink, the satellite broadband service company has already been embraced by neighbouring countries like Zimbabwe and Mozambique. In Zimbabwe, Communications Minister Jenfan Muswere recently announced the licensing of Starlink, signaling an openness to new technologies. The Starlink kit, priced at US$628 with a monthly subscription equivalent to P 642, offers an attractive alternative to traditional broadband services. A source this week said, BOCRA's suggested reluctance to embrace Starlink may hinder Botswana's progress in telecommunications and digital connectivity, in an era where global communication and connectivity are paramount.
Starlink is a trail blazing internet service provision provider, operating under SpaceX, which is owned by South African born-billionaire, Elon Musk. This week, one source, with intimate knowledge of the industry, told Botswana Guardian that, traditional regulatory bodies in the ICT and internet services providers sub sectors (such as BOCRA) are facing an unprecedented challenge on how to ‘fairly adjudicate applications from innovative disruptors like Starlink while balancing their reliance on revenue from established telecommunications companies’. Botswana Telecommunications Corporations, Mascom Wireless and Orange Botswana, are just some of the country’s major telecommunications companies, who contribute in large to BOCRA’s turnover fees. The source assertion that BOCRA, like many other regulators depends on turnover fees from traditional telecommunications giants, as it is also confirmed by the regulator’s latest annual report. BOCRA's annual report for the fiscal year, reveals revenues of P185, 855,719. The bulk of this substantial revenue, a staggering P102, 895,472, is derived from turnover fees levied against telecommunications companies. In addition, the Universal Access and Service Fund (UASF) Levy contribution, amounting to P44, 080,599, also primarily relies on contributions from telecommunications companies. In fact, telecommunications companies are responsible for a substantial 79 percent of BOCRA's revenues. In contrast, sectors like postal services and broadcasting contribute a mere 1% to BOCRA's income, highlighting the authority's significant reliance on traditional telecommunications revenue streams. “This reliance on established telecom entities places BOCRA in a precarious position when evaluating Starlink's license application,” said a source. On Wednesday afternoon, BOCRA's Director of Broadcasting and Corporate Communications, Aaron Nyelesi confirmed they received the application from Starlink as far back as May 2023. “The application is undergoing assessment,” Nyelesi said, furthermore adding it will be improper to discuss an applicant’s license status with third parties. On suggestions that BOCRA might be experiencing a dilemma on deciding on the Starlink license application, given the fact the regulator depends heavily on turnover fees from traditional telecommunications firms, Nyelesi said: “BOCRA operations are guided by the Communications Regulatory Authority Act, 2012 which enshrines it with the responsibility to effectively regulate the sector while protecting and promoting the interests of consumers, which in essence requires impartiality and prudence on the part of the Regulator.” While BOCRA is yet to issue a license to Starlink, the satellite broadband service company has already been embraced by neighbouring countries like Zimbabwe and Mozambique. In Zimbabwe, Communications Minister Jenfan Muswere recently announced the licensing of Starlink, signaling an openness to new technologies. The Starlink kit, priced at US$628 with a monthly subscription equivalent to P 642, offers an attractive alternative to traditional broadband services. A source this week said, BOCRA's suggested reluctance to embrace Starlink may hinder Botswana's progress in telecommunications and digital connectivity, in an era where global communication and connectivity are paramount.
