Amazon Leo to offer internet in South Africa

Investing.com -- Amazon's low-earth orbit satellite internet venture Amazon Leo signed an agreement with South Africa's Herotel on Wednesday to launch a new broadband service for underserved rural communities.

Herotel, South Africa's largest fixed internet service provider, will use Amazon Leo's satellite technology to offer a service called evry. The service is expected to launch commercially in 2027 for residential customers.

The partnership aims to address a connectivity gap in South Africa, where millions of people living on farms, in small towns and rural communities lack access to reliable internet services. Conventional fibre and wireless networks are often uneconomical to deploy in these areas.

"This collaboration is about breaking down barriers and unlocking opportunity for millions of people who don't yet have reliable access for work, education, or the services they depend on," David Zapolsky, Amazon's chief global affairs and legal officer, said in a statement.

Herotel, owned by Maziv, serves more than 350,000 customers across over 550 towns through fibre and fixed wireless networks. The company operates 120 offices nationwide and said its footprint would allow it to provide installation, customer service and field operations for the satellite service from launch.

Starlink, operated by Elon Musk's SpaceX, has also long sought to enter the South African market but is awaiting proposed changes to licensing rules. The changes could allow foreign satellite operators to meet local ownership and empowerment requirements through alternatives to equity stakes. Musk, South Africa's native, has repeatedly criticized the country's laws.

Earlier this year, Amazon Leo signed an agreement with Vodafone to link Vodafone's network to base stations in hard-to-reach locations in Africa through its South Africa subsidiary Vodacom.

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