Amazon signs agreement with Herotel to offer satellite internet in South Africa starting in 2027

Elon Musk's satellite broadband service Starlink, which has over 10,000 satellites and millions of customers in dozens of countries, is actively operating almost across all of Southern Africa, including Mozambique, Malawi, Madagascar, Botswana, Zimbabwe, Zambia, Eswatini, and Lesotho. However, this week, a competing group, Amazon Leo, received the route to South Africa, despite having only 390 satellites and no commercial customers anywhere in the world yet.

Market Entry Strategy

The internet provider Herotel, owned by Maziv, an operator of fiber optic and wireless networks, will distribute Leo satellite broadband under the new brand Evry, with a commercial launch expected in 2027. Thus, Amazon has overtaken Starlink. This success was achieved not through technological superiority, large financial reserves, or regulatory privileges, but because Amazon viewed the South African licensing regime as an engineering problem to be solved, while Starlink waited long and loudly for rule changes.

Requirements and Company Reactions

The rules applicable to both companies are identical: to obtain a network license in South Africa, an operator must own at least 30% of historically disadvantaged groups. SpaceX refused to give up a stake in its local operations, and Musk publicly disputed this requirement for years, calling it racially discriminatory. He argued that he could not launch Starlink in the country because 'I am not Black,' turning the licensing issue into a diplomatic and political spectacle. As a result, Starlink remains unavailable in Africa's most advanced broadband market, despite thriving in almost all neighboring countries.

Outcomes of Different Approaches

Amazon studied the same rules but reached a different conclusion. Icasa reported in a notification last month that satellite operators currently cannot obtain the necessary network licenses, and that the realistic path to the market is through an existing license holder. Amazon did exactly that: Herotel will hold the licenses, and Amazon will not. This allowed them to avoid conflict over equity, political theater, and posts on X. It turned out that the boring strategy is effective and aligns with Amazon's overall approach to South Africa, including the launch of the regional AWS in Cape Town and years of quiet preparation. Amazon views regulatory hurdles as part of the cost of doing business, whereas Musk sees them as an ideological reason.

Benefit from Strategies

Musk's stance led to years of headlines, a central role in tensions between South Africa and the US, but brought no revenue from a market with enormous product demand. This demand is so high that Icasa was forced to combat the smuggling of Starlink terminals through neighboring countries. Consequently, Amazon's compliance secured it a first-mover advantage: an approximate launch date (2027), a distribution partner with wide coverage in small and rural settlements where satellite broadband works best, and an active registration page. Nevertheless, the first announcement does not mean first service, as Leo has not launched commercially anywhere yet, and its debut in South Africa in 2027 leaves room for delays.

Future of Regulation and Conclusions

Despite this, it cannot be considered a victory for transformation policy. The licensing regime did not extract 30% equity from Amazon because Amazon (apparently) does not need a license at all. If the measure of success is broad ownership of the digital economy, then channeling foreign operators through distribution structures achieves this only formally. Therefore, it would be unwise if the government did not finalize an equivalent to equity capital. The December 2025 policy of Communications Minister Solly Malatsi, allowing multinational corporations to fulfill empowerment obligations through equivalent equity investment programs (EEIPs) instead of ownership stakes, is causing political debate, and experts warn that implementation could take years.

Starlink has already submitted a proposal worth about 500 million rand to connect 5,000 schools, plus 2 billion rand for local infrastructure. However, not every multinational corporation will be able or willing to follow the partnership model like Amazon's; some prefer to operate directly, have their own licenses, and invest accordingly. South Africa, with its stagnant economy and high unemployment, is not in a good position to deter companies actively trying to invest by insisting on one narrow form of compliance. The goal of the rules is transformation, not checkpoint control. The main lesson of this week is the temperament of corporations: in regulated markets, the scarce resource is not the satellite or the capital, but the willingness to find a way through local rules that may not be liked. Amazon, apparently, found such a way, while Musk, with a six-year head start and a product that South Africans are literally smuggling across borders, could not.

SpaceX launched 29 Starlink satellites into low Earth orbit on Tuesday, the 14th, at 6:10 AM Brasília time. The Falcon 9 rocket departed from Launch Complex 40, located at the Cape Canaveral Space Force Station in Florida, United States.

Mission and Reusability Details

This event marked the 28th mission for the first stage of the rocket used in the launch. This booster had already been used in several missions, including Ax-2, Euclid, Ax-3, CRS-30, SES Astra 1P, and NG-21, as well as 22 other flights destined for the Starlink constellation.

After stage separation, the first stage returned to the surface and successfully landed on the autonomous maritime platform named A Shortfall of Gravitas, located in the Atlantic Ocean.

Expansion of the Starlink Constellation

Currently, SpaceX maintains over 10,000 operational Starlink satellites in orbit and has permission to deploy approximately another 4,000. Since the beginning of the project, more than 12,000 satellites have been sent into space, although some have ceased operation.

The fleet growth continues at an accelerated pace. In the first half of 2026 alone, the company managed to place 1,589 Starlink satellites into low Earth orbit, a number higher than the 1,489 launched in the same period of 2025. In the previous year, the company reached its annual record by launching 3,180 satellites.

Next Steps with Starship

The Starship vehicle has already received authorization for new flights. The U.S. Federal Aviation Administration (FAA) granted SpaceX permission to conduct another test following the investigation into the failure that occurred in the Super Heavy booster during the flight in May.

According to SpaceX, this next mission will be the second launch of the V3 version of the rocket and will also feature the first Starlink V3 satellites, which will play a crucial role in expanding the company's space internet network. This launch is scheduled for next Thursday, the 16th, between 7:45 PM and 9:15 PM Brasília time.

A new advance in the competition for satellite internet services occurred early Thursday morning with the launch of 29 satellites belonging to the Amazon Leo project. These satellites were placed into low orbit using an Atlas V rocket, bringing Amazon's operation closer to offering an initial service.

Amazon Leo Network Expansion

The launch, conducted in Florida, demonstrates Amazon's accelerated pace in this market, which is currently dominated by Starlink, according to Space.com. The 29 new satellites were deployed into low Earth orbit and their confirmation was received about 70 minutes after liftoff, according to ULA. The vehicle used was the Atlas V in the 551 configuration, considered the most powerful in its line.

This version of the rocket carried a payload of approximately 18 tons, setting a previous record for the mission itself. With this shipment, Amazon Leo now has about 400 satellites positioned in space, resulting from 15 launches so far.

Direct Competition with Starlink

The goal of Amazon Leo is to establish a global network composed of approximately 3,200 satellites in low Earth orbit, aiming to compete directly with Starlink, which already operates over 10,000 satellites worldwide. According to The Verge, Amazon already has enough satellites to start a limited service in certain regions, with initial coverage focused on specific latitudes. This scenario recalls the early stages of Starlink, when its service was restricted and unstable for few users.

Initially, the service performance is expected to vary depending on the location. Expected parameters include speeds between 50 Mbps and 150 Mbps, latency ranging between 20 ms and 40 ms, as well as a connection that may be unstable in areas with poor coverage, with progressive improvements as new satellites are launched.

Challenges and Future Prospects

Despite constant progress, Amazon still faces obstacles in maintaining the planned speed for its constellation. Part of this delay is related to the launch schedule, which was affected by setbacks in the development of the New Glenn rocket, manufactured by Blue Origin. This factor has reduced the deployment frequency, while SpaceX maintains a considerable advantage due to the consolidation of its network.

Nevertheless, the recent advance signals an acceleration. It is predicted that the commercial service will begin to take shape by mid-2026, as more satellites are incorporated and coverage becomes more uniform globally.