Due 2025
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, the global satellite internet provider owned by SpaceX, has rapidly expanded to serve
customers in over 100 countries. Its entry into South Africa faces regulatory hurdles, particularly
regarding compliance with Broad-Based Black Economic Empowerment (B-BBEE) ownership
requirements. To navigate these challenges, Starlink has proposed acquiring a 70% controlling
stake in Vodacom Ltd, South Africa’s leading mobile operator. This essay examines the
classification of the proposed transaction, assesses its likely impact on competition and the
public interest, and provides a recommendation consistent with the objectives of the
Competition Commission of South Africa.
Nature of the Merger
The proposed acquisition is best described as a conglomerate merger with horizontal elements.
Vodacom dominates South Africa’s mobile telecommunications market, while Starlink provides
internet connectivity through low-earth orbit satellites. Although the two companies do not
currently compete directly within the South African market, their offerings overlap in broadband,
particularly in rural and fixed-wireless access. Integrating Vodacom’s terrestrial infrastructure
with Starlink’s satellite network raises both horizontal and vertical competition concerns.
Competitive Assessment
Market Power and Structure
Vodacom controls approximately 40% of the mobile services market in South Africa and
maintains a subscriber base exceeding 100 million across the continent. Starlink delivers high-
speed, low-latency satellite internet that bypasses traditional infrastructure limitations. Acquiring
Vodacom would give Starlink access to crucial spectrum rights, nationwide infrastructure, and
an extensive customer base, potentially creating a dominant position across multiple
communications segments.
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, the global satellite internet provider owned by SpaceX, has rapidly expanded to serve
customers in over 100 countries. Its entry into South Africa faces regulatory hurdles, particularly
regarding compliance with Broad-Based Black Economic Empowerment (B-BBEE) ownership
requirements. To navigate these challenges, Starlink has proposed acquiring a 70% controlling
stake in Vodacom Ltd, South Africa’s leading mobile operator. This essay examines the
classification of the proposed transaction, assesses its likely impact on competition and the
public interest, and provides a recommendation consistent with the objectives of the
Competition Commission of South Africa.
Nature of the Merger
The proposed acquisition is best described as a conglomerate merger with horizontal elements.
Vodacom dominates South Africa’s mobile telecommunications market, while Starlink provides
internet connectivity through low-earth orbit satellites. Although the two companies do not
currently compete directly within the South African market, their offerings overlap in broadband,
particularly in rural and fixed-wireless access. Integrating Vodacom’s terrestrial infrastructure
with Starlink’s satellite network raises both horizontal and vertical competition concerns.
Competitive Assessment
Market Power and Structure
Vodacom controls approximately 40% of the mobile services market in South Africa and
maintains a subscriber base exceeding 100 million across the continent. Starlink delivers high-
speed, low-latency satellite internet that bypasses traditional infrastructure limitations. Acquiring
Vodacom would give Starlink access to crucial spectrum rights, nationwide infrastructure, and
an extensive customer base, potentially creating a dominant position across multiple
communications segments.
