Amazon’s satellite venture signed a distribution deal with a South African fixed internet operator to launch a broadband service. The partnership enables the technology giant to sidestep ownership rules that have stalled the expansion of Starlink into one of Africa’s most valuable telecom markets. Local internet firm Herotel will use Amazon Leo’s low Earth orbit satellite network to sell a new consumer service. Pretoria’s requirement that 30% of any licence holder be owned by Black South Africans does not apply to Amazon because Herotel is the licensed operator.
Starlink, founded and led by South Africa-born billionaire Elon Musk, ran into regulatory delays after refusing to dilute its ownership to meet the same equity threshold. Namibia has also prevented Starlink from entering its telecoms markets over local ownership rules that have become a point of contention for multinational firms operating in Africa. Africa’s young population and patchy broadband networks offer global operators an attractive mix of scale and unmet demand.
