As a lawyer, technology law can be a confusing area. There is a constant bombardment of technical terms, abbreviations and new innovations that make it almost impossible for a lawyer to keep up. It is furthermore difficult to apply complex legal frameworks to blurry abbreviations, describing an object, a process, or a use that the lawyer has no knowledge of. Lawyers are more likely wordsmiths, not technological specialists.
Satellites are being used on a daily basis by every one of us. Yet, we divert little attention to understanding the legal frameworks governing satellites.
Common examples of how satellites are used
Examples of satellite use in everyday life can be summarised as follows:
- Navigation, GPS, delivery apps (i.e. Checkers Sixty60, Uber, Bolt etc.);
- Weather forecasting;
- Broadcast television, such as DSTV;
- Payments and banking, which includes card machines in remote areas, timestamps for stock exchange transactions, etc.
- Connectivity where cables cannot reach, such as remote farms, ships, airplanes, etc.
Some other aspects also depend on the use of satellites. Insurance companies underwrite insurance on risk profiles, which applies to international freight companies using shipping lanes. The risk is determined by the route taken by these ships, which is governed using GPS systems. This is an isolated use case of satellites, but the impact of satellites extends to almost every industry.
ICASA regulations
On 29 June 2026, the Independent Communications Authority of South Africa (ICASA) published a notice in the Government Gazette, setting out the licensing requirements for anyone wanting to provide services in South Africa using a “satellite constellation”. The rules were a response to enquiries from several prospective satellite operators, which indicates commercial interest. A satellite constellation is not defined in South African law, but in the general sense refers to a group of satellites operating together.
The three ICASA licences
In terms of Section 31(1) of the Electronic Communications Act 36 of 2005 (ECA), no person may transmit any radio signal, except if a radio frequency licence (RFS) has been granted by ICASA.
Operating satellite constellation services in South Africa takes three categories of licence, not one:
- Individual Electronic Communications Service (IECS) licence: This licence grants the holder the right to provide communication services to its customers, which in essence provides the right to sell connectivity.
- Individual Electronic Communications Network Service (IECNS) licence: This licence grants the holder the right to operate network infrastructure that carries the signals.
- Radio Frequency Spectrum (RFS) licence: Grants the holder the right to use particular radio frequencies.
It is extremely important to note that an operator that wishes to use the services of a satellite constellation in South Africa will require all three of the above licences:
- for the right to provide communication services (IECS);
- to operate infrastructure that carries signals (IECNS); and
- the right to use particular radio frequencies (RFS).
Obtaining them is a separate question from needing them. The IECNS licensing process can only commence once ICASA has published an "Invitation to Apply", and only in terms of a policy direction issued by the Minister under Section 5(6) of the ECA. The Department of Communications and Digital Technologies issued such a policy direction on 22 August 2025, directing ICASA to hold an inquiry into whether new IECNS licences are needed, and that inquiry is still underway.
For a client entering this market, this is a material practical constraint. There is currently no open Invitation to Apply, and the notice points prospective operators instead toward commercial negotiation with an existing licensee for the transfer of that licence.
Spectrum sharing
Where several operators want to use the same constellation in the same frequency band, they must apply for spectrum sharing on a coordinated basis. Regulation 18(3) of the Radio Frequency Spectrum Regulations allows two or more persons to apply for a shared assignment, provided a sharing agreement is submitted to ICASA for approval, and for certain bands ICASA may also require a joint coordination agreement. Note that a spectrum-sharing agreement is not purely a commercial contract between the parties. ICASA has to approve it, which affects how you handle confidentiality, amendments and dispute resolution.
Gateway Earth Stations
A Gateway Earth Station is a ground facility that connects a satellite system to the network on Earth. South Africa requires an IECNS licence, together with the relevant spectrum licences. Where different licensees operate separate gateways into the same satellite constellation, each operates independently and needs its own licences. Where one entity runs gateways for the same constellation at different sites, ICASA treats that as spectrum reuse rather than sharing.
An issue arises where the gateway serving a satellite network sits outside South Africa. The applicant has to show ICASA how lawful interception will take place in terms of the Regulation of Interception of Communications and Provisions of Communication-related information Act 70 of 2002 (RICA). It is better to ask this question during the process of obtaining the licence, as opposed to realising compliance with RICA is not possible after the fact.
Summary of the required licences
The notice sets out several scenarios, which it describes as non-exhaustive.
| Your client is… | What they need |
|---|---|
| Providing constellation services directly to end users | IECS + IECNS + the relevant RFS licences |
| Operating on a wholesale basis to other ECS licensees | IECNS + RFS licences, together with an IECS licence if it also serves end users directly |
| One of several independent operators using the same constellation | Its own full set of IECS, IECNS, and RFS licences, with coordinated spectrum sharing |
| Reselling services bought from an existing ECS licensee | A licence exemption under regulation 13 of the Licensing Processes and Procedures Regulations for Class Licences |
| Operating a gateway earth station in South Africa | IECNS, RFS licences, plus an I-ECS licence for any retail services |
Most South African businesses operate as resellers. They are not operating satellites; they are packaging somebody else's capacity and reselling it for a profit. This grants a class-licence exemption, which is a far lighter regulatory and compliance load than obtaining licences as seen above.
Ownership and B-BBEE
Section 9(2)(b) of the ECA requires an Invitation to Apply to specify the percentage of equity ownership to be held by persons from historically disadvantaged groups, which must not be less than 30%. ICASA applies this as a minimum 30% ownership requirement for individual licence holders. For a foreign satellite operator, this is usually the real barrier to entry, more so than the spectrum or gateway questions.
The position is currently unsettled. In December 2025, the Minister of Communications and Digital Technologies issued a policy direction instructing ICASA to align its ownership regulations with the Amended ICT Sector Code, which recognises equity equivalent investment programmes (EEIPs) as an alternative to direct equity ownership. On 13 May 2026, ICASA responded that full alignment with the Code, including EEIPs, would require a legislative amendment to the ECA. The Minister has since indicated that this will be pursued through the Electronic Communications Amendment Bill. Until that amendment is passed, the 30% requirement is still in force.
Conclusion
Satellite licensing is only one layer of a wider regulatory picture. The same client will often also carry export control exposure on its hardware, trade law questions on cross-border service delivery, and treaty obligations above all the mentioned elements.
Legal practitioners can upskill by attending the Space – satellite component compliance and regulatory practice for legal practitioners course offered by the Gawie le Roux Institute of Law in partnership with NakaSA.
About the author
Hein Steenberg completed his BCom Law degree, followed by an LLB and LLM in mercantile law, with a specific focus on space law at the North-West University. Hein is currently pursuing his LLD in space law.
Last updated on 3 August 2026.