Alan Knott-Craig Jr, former CEO of Mxit has launched a new Wireless Internet Service Provider (WISP) that would wireless broadband to homes and offices. The service called HeroTel will consolidate the local WISP space (which currently has more than 200 providers) and provide a viable last-mile broadband alternative across the country.
Knott-Craig told TechCentral: “South Africans need fast, reliable and affordable broadband and are increasingly looking for an alternative to ADSL.
“HeroTel plans to consolidate the disparate regional wireless broadband providers under a national brand and unlock the economies of scale.”
The new company is backed by former FNB CEO Michael Jordaan, former Rand Merchant Bank (RMB) CEO Mike Pfaff and former RMB chief investment officer Derek Prout-Jones — was formed following the acquisition of Snowball, based in Stellenbosch, and Cloud Connect, based in George.
Knott-Craig added that HeroTel will offer a very different model to that used by tradional data providers:
“The old ways only make sense when the operator can generate revenue from high-margin voice calls,” he said. “Pure-play data networks do not have the luxury of selling minutes, which is why today’s data networks continue to struggle to provide a suitable return on capital for investors.
“The truth is that consumers want faster speeds and lower prices every year. Instead of fighting that demand, Wisps have figured out a way deliver the goods while making a profit. HeroTel has taken the lessons learnt by Wisps to reduce the cost of deploying and operating a telecoms network to a point where it is profitable to provide fast, reliable, affordable broadband to the public.”
The company’s consumer offering is set to launch on 1 April next year.
