en.Wedoany.com Reported - South African internet service provider Herotel plans to expand its home coverage by 1 million households over the next two years, bringing its total covered households to 1.6 million.
Herotel CEO Van Zyl Botha revealed this growth target in an interview on the podcast channel ITWeb TV. This statement came after the telecommunications regulator, the Independent Communications Authority of South Africa (ICASA), completed its review of Herotel's license transfer application to fiber operator Vumatel.
In the interview, Botha said the company's initial goal was to become a "small-town hero," providing unlimited connectivity services to South African households. Herotel's operations have now expanded to over 500 towns. He also mentioned the company's plans to enter the mobile virtual network operator (MVNO) space and the development prospects of broadband connectivity in South Africa.
Founded in 2013, Herotel initially served as a consolidation strategy in the fixed wireless industry, aiming to leverage existing network infrastructure for universal connectivity. Unlike providers that rely on third-party networks, the company builds, owns, and operates its own fiber and wireless infrastructure. Botha stated that this model has enabled Herotel to achieve rapid expansion across South Africa.
In 2022, fiber operator Vumatel announced plans to acquire a 45% non-controlling stake in Herotel, with the relevant regulatory process recently completed. Botha said the completion of the shareholder transaction is positive for the company's plans to connect more users.
Currently, Herotel covers 600,000 households and connects approximately 10,000 businesses. The company also operates a wireless network connecting about 50,000 customers, primarily in areas beyond fiber coverage. Botha said he hopes to add another 1 million covered households within two years, but obtaining wayleaves and coordinating with local governments is a complex process.
Although Vumatel has become a shareholder, Botha stated that the strategy is for Herotel to maintain its own brand and operational autonomy. He mentioned that the company needs to align with group policies and continue its existing operations over the next three years until universal connectivity is achieved in South Africa. Thereafter, it will enter the next phase, deciding which other digital products and services to offer customers.
Official statistics in South Africa show there are 17 million households nationwide, with 4 million in suburban areas and 13 million in townships. Currently, only 6 million are recorded as connected, meaning a large number of households still lack network access. Botha noted that for areas near backhaul and power grids, fiber coverage can be deployed; for sparsely populated regions, low Earth orbit satellite solutions may be more suitable.
In addition to expanding home connectivity services, Herotel recently conducted a proof-of-concept for SIM cards, planning to launch a service called Herotel mobile. Botha said the company will operate as an MVNO to meet customer demand for mobility and television services. He also revealed that the company is conducting telemedicine trials and is exploring the potential of other digital products such as security monitoring.
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