LML4802
Assignment 1
Due 2025
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, a subsidiary of SpaceX, has rapidly expanded its satellite internet services to
over 100 countries worldwide. In South Africa, however, its rollout has been constrained
by legal and regulatory conditions, particularly the requirements of Broad-Based Black
Economic Empowerment (B-BBEE) ownership. To navigate these barriers, Starlink has
proposed acquiring a 70% controlling interest in Vodacom Ltd, the country’s largest
mobile operator. This essay evaluates the classification of the proposed merger, its
competitive and public-interest effects, and concludes with a recommendation in line
with the mandate of the Competition Commission of South Africa.
Type of Merger
The deal may be classified primarily as a conglomerate merger with horizontal features.
Vodacom is the dominant player in the South African mobile network operator (MNO)
market, while Starlink provides satellite-based internet connectivity. Although the two do
not yet compete head-to-head locally, their services intersect in broadband provision,
especially in rural access and fixed-wireless alternatives. The integration of Vodacom’s
terrestrial infrastructure with Starlink’s satellite technology therefore raises both
horizontal and vertical competition concerns.
Competitive Assessment
Market Power and Structure
Vodacom controls close to 40% of South Africa’s mobile market and maintains a strong
footprint across Africa, serving over 100 million customers. Starlink, on the other hand,
delivers low-latency satellite internet that operates independently of terrestrial networks.
If Starlink acquires Vodacom, it would immediately gain access to spectrum rights,
Assignment 1
Due 2025
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, a subsidiary of SpaceX, has rapidly expanded its satellite internet services to
over 100 countries worldwide. In South Africa, however, its rollout has been constrained
by legal and regulatory conditions, particularly the requirements of Broad-Based Black
Economic Empowerment (B-BBEE) ownership. To navigate these barriers, Starlink has
proposed acquiring a 70% controlling interest in Vodacom Ltd, the country’s largest
mobile operator. This essay evaluates the classification of the proposed merger, its
competitive and public-interest effects, and concludes with a recommendation in line
with the mandate of the Competition Commission of South Africa.
Type of Merger
The deal may be classified primarily as a conglomerate merger with horizontal features.
Vodacom is the dominant player in the South African mobile network operator (MNO)
market, while Starlink provides satellite-based internet connectivity. Although the two do
not yet compete head-to-head locally, their services intersect in broadband provision,
especially in rural access and fixed-wireless alternatives. The integration of Vodacom’s
terrestrial infrastructure with Starlink’s satellite technology therefore raises both
horizontal and vertical competition concerns.
Competitive Assessment
Market Power and Structure
Vodacom controls close to 40% of South Africa’s mobile market and maintains a strong
footprint across Africa, serving over 100 million customers. Starlink, on the other hand,
delivers low-latency satellite internet that operates independently of terrestrial networks.
If Starlink acquires Vodacom, it would immediately gain access to spectrum rights,
