, LML4802 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Merger Control Analysis of Starlink’s Proposed Acquisition of
Vodacom Ltd. in South Africa
Introduction
Starlink, a United States–based satellite internet provider wholly owned
by SpaceX, has achieved a global footprint in more than 100 countries.
Its innovative low-earth-orbit satellite network is aimed at providing
high-speed internet access in both urban and underserved rural areas.
However, despite its ambitions, Starlink has been unable to establish
operations in South Africa because of ownership restrictions under local
telecommunications law. To address this challenge, Starlink proposes
acquiring a 70% stake in Vodacom Ltd., one of South Africa’s largest
mobile and broadband service providers. This transaction raises
important questions under South African merger control law,
particularly concerning competition, market concentration, public
interest, and ownership transformation.
This essay identifies the type of merger, applies the relevant factors for
its evaluation, and concludes with a recommendation as the Competition
Commission of South Africa.
Classification of the Merger
The transaction is a horizontal acquisition, as both Starlink and
Vodacom operate in the telecommunications and internet services sector,
albeit with different technologies. Starlink provides satellite broadband
globally, while Vodacom focuses on mobile, fixed broadband, and fibre
networks within South Africa and other African markets. The merger
Semester 2 2025 - DUE 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Merger Control Analysis of Starlink’s Proposed Acquisition of
Vodacom Ltd. in South Africa
Introduction
Starlink, a United States–based satellite internet provider wholly owned
by SpaceX, has achieved a global footprint in more than 100 countries.
Its innovative low-earth-orbit satellite network is aimed at providing
high-speed internet access in both urban and underserved rural areas.
However, despite its ambitions, Starlink has been unable to establish
operations in South Africa because of ownership restrictions under local
telecommunications law. To address this challenge, Starlink proposes
acquiring a 70% stake in Vodacom Ltd., one of South Africa’s largest
mobile and broadband service providers. This transaction raises
important questions under South African merger control law,
particularly concerning competition, market concentration, public
interest, and ownership transformation.
This essay identifies the type of merger, applies the relevant factors for
its evaluation, and concludes with a recommendation as the Competition
Commission of South Africa.
Classification of the Merger
The transaction is a horizontal acquisition, as both Starlink and
Vodacom operate in the telecommunications and internet services sector,
albeit with different technologies. Starlink provides satellite broadband
globally, while Vodacom focuses on mobile, fixed broadband, and fibre
networks within South Africa and other African markets. The merger
