Johannesburg - Former Mxit CEO Alan Knott-Craig - who has moved into providing free WiFi - has unveiled his latest endeavour; a new wireless internet provider.
Other big names linked to the project include former FNB CEO Michael Jordaan, former Rand Merchant Bank, CEO Mike Pfaff and CIO Derek Prout-Jones.
Knott-Craig - son of former Vodacom and Cell C CEO Alan Knott-Craig snr - has most recently been involved with a non profit project, Project Isizwe, which he founded in 2013. He stepped down as Mxit CEO in 2012 after a shareholder disagreement.
The entrepreneur then took some time out before moving back into the world of telecoms tech.
On Tuesday, he announced the imminent commercial launch of HeroTel, which aims to “provide fast, reliable wireless broadband at affordable rates to households and small businesses,” a statement marking the unveiling said.
Herotel plans to consolidate the WISP industry in order to provide a single national wireless broadband provider.
“South Africans need fast, reliable and affordable broadband and are increasingly looking for an alternative to ADSL,” said Knott-Craig jnr. “WISPs already satisfy this craving with net profit margins reaching as high as 40%. However, due to the fragmented nature of the industry the WISPs suffer from lack of coordination. HeroTel plans to consolidate the disparate regional wireless broadband providers under a national brand and unlocked the economies of scale.”
Connectivity has become an increasingly big business in recent years, with several suburbs in Johannesburg and Cape Town electing to appoint fibre providers, who then lay down open-access infrastructure. The cellular companies have also been making fibre inroads, and are rolling out long-term evolution - the latest generation of mobile connectivity.
Herotel argues the lack of reliable fixed-line options in the market has birthed a thriving industry of over 200 wireless Internet service providers (WISPs) over the past 13 years, with estimated combined annual revenues of R700 million. “Wireless broadband connections continue to grow at twice the rate of fixed lines, highlighting a fast-growing market segment within an already booming industry.”
HeroTel was formed following the acquisition of Snowball, based in Stellenbosch, and Cloud Connect, based in George, and is funded by an investor consortium including former First National Bank, CEO Michael Jordaan, former Rand Merchant Bank, CEO Mike Pfaff and CIO Derek Prout-Jones.
“We are currently integrating our WISPs under a unified network and brand and are scheduled to officially launch HeroTel for consumers on 1 April 2016, says Knott-Craig.
Knott-Craig, who will become the company’s executive chairman, has co-founded or funded 17 companies in the tech sector in Africa, according to his LinkedIn profile.
HeroTel’s CEO will be Corne de Villiers, its COO Francois Wessels, Imel Rautenbach will be its chief information officer) and its CFO is Van Zyl Botha. Knott-Craig is retaining his position as CEO of Project Isizwe.
IOL