, LML4802 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE September 2025 ; 100% correct
solutions and explanations.
Evaluation of the Proposed Merger Between Starlink and Vodacom
1. Introduction
The telecommunications industry in South Africa is a strategic sector,
central to digital transformation, economic competitiveness, and social
inclusion. Starlink, a subsidiary of SpaceX, has expressed strong interest
in expanding into South Africa. Its proposed acquisition of a 70%
controlling stake in Vodacom Ltd, the country’s largest mobile
operator, raises critical questions for merger control.
The Competition Act 89 of 1998 tasks the Competition Commission
with evaluating mergers not only on competition grounds but also on
broader public interest considerations, such as employment and the
participation of historically disadvantaged persons. This paper critically
assesses the merger between Starlink and Vodacom by classifying the
transaction, applying section 12A factors, and presenting a reasoned
recommendation.
2. Background of the Firms
2.1 Starlink
Starlink is a satellite internet provider wholly owned by SpaceX, a U.S.-
based aerospace company founded by Elon Musk. By 2025, Starlink
operates in over 100 countries, offering high-speed, low-latency
broadband through a constellation of low-Earth orbit satellites. Starlink’s
core value proposition is its ability to serve remote and underserved
communities where terrestrial networks are limited.
Semester 2 2025 - DUE September 2025 ; 100% correct
solutions and explanations.
Evaluation of the Proposed Merger Between Starlink and Vodacom
1. Introduction
The telecommunications industry in South Africa is a strategic sector,
central to digital transformation, economic competitiveness, and social
inclusion. Starlink, a subsidiary of SpaceX, has expressed strong interest
in expanding into South Africa. Its proposed acquisition of a 70%
controlling stake in Vodacom Ltd, the country’s largest mobile
operator, raises critical questions for merger control.
The Competition Act 89 of 1998 tasks the Competition Commission
with evaluating mergers not only on competition grounds but also on
broader public interest considerations, such as employment and the
participation of historically disadvantaged persons. This paper critically
assesses the merger between Starlink and Vodacom by classifying the
transaction, applying section 12A factors, and presenting a reasoned
recommendation.
2. Background of the Firms
2.1 Starlink
Starlink is a satellite internet provider wholly owned by SpaceX, a U.S.-
based aerospace company founded by Elon Musk. By 2025, Starlink
operates in over 100 countries, offering high-speed, low-latency
broadband through a constellation of low-Earth orbit satellites. Starlink’s
core value proposition is its ability to serve remote and underserved
communities where terrestrial networks are limited.
