SPACE WARS: Herotel chosen as Amazon Leo distributor in Maziv race for satellite internet

Herotel, a subsidiary of Maziv, has secured a distribution agreement with Amazon Leo, positioning itself as an official provider of satellite-based internet services to underserved communities in South Africa. The partnership, announced during a media briefing, marks a strategic move in the growing race for satellite broadband, with Amazon Leo's technology offering high-speed internet via low Earth orbit satellites. The service, branded as "evry," aims to deliver connectivity to rural and peri-urban areas where traditional infrastructure such as fiber-optic cables and fixed wireless networks fall short. The collaboration between Herotel and Amazon Leo was formalized following months of negotiations, with both parties emphasizing the importance of expanding digital access to remote regions. According to the announcement, the primary goal of the agreement is to extend high-speed internet beyond urban centers, focusing particularly on agricultural zones, small towns, and informal settlements. This initiative aligns with broader efforts to bridge the digital divide in South Africa, where millions still lack consistent internet access. Herotel CEO Van Zyl Botha described the launch of "evry" as the culmination of the company's long-term strategy to improve connectivity across the country. He highlighted the significance of partnering with Amazon Leo, noting that the service would enable Herotel to serve populations previously excluded from reliable internet. "We have always believed that South Africans outside the major metros, whether on farms, in small towns, in townships, or in rural communities, deserve reliable, affordable internet," Botha stated. "With evry, powered by Amazon Leo, we will reach the customers that even fibre and fixed wireless cannot serve." David Zapolsky, Amazon’s chief global affairs and legal officer, echoed this sentiment during a subsequent press statement. He emphasized the shared vision between Amazon Leo and Herotel to empower South Africans through improved connectivity. "Amazon Leo and Herotel share the same mission to empower all South Africans through access to high-speed internet," Zapolsky said. "Herotel has spent years building connectivity across South Africa’s farming towns, small businesses, and communities on the outskirts, and with Amazon Leo, they can now reach even more people." The commercial launch of the "evry" service is scheduled for 2027. While pricing details and specific service packages have not yet been disclosed, both companies have indicated their intention to target a large and largely untapped market. This approach reflects a growing trend among tech firms to focus on rural and semi-urban areas, where demand for reliable internet continues to rise despite limited infrastructure. Unlike SpaceX’s Starlink, which has encountered regulatory challenges related to licensing and compliance with the Broad-Based Black Economic Empowerment (B-BBEE) Act’s 30% local ownership requirement, Amazon Leo appears to have navigated these hurdles more effectively. Trevor Vieweg, global head of the Amazon Leo business, confirmed that Herotel will hold the necessary licenses for the service, allowing the partnership to proceed without requiring additional approvals from regulators such as Icasa. The agreement also comes amid ongoing legal constraints tied to previous mergers involving Maziv and its subsidiaries. Specifically, the Vumatel/Herotel acquisition order and the Vodacom/Maziv merger approval agreement impose certain obligations on how Herotel can operate the "evry" service. If the service is offered as a wholesale product to other internet service providers, Herotel must ensure it is available on an open-access, transparent, and non-discriminatory basis. However, if operated solely as a retail service, these restrictions may be avoided, though internal transfers to affiliated entities like Vumatel or Vodacom must still comply with standard pricing protocols. Additionally, Vodacom remains committed to executing a R60-billion capital expenditure plan over the next five years, aiming to achieve 90% 5G population coverage. This commitment underscores the broader push to expand digital infrastructure across South Africa, including through partnerships like the one between Herotel and Amazon Leo.