Supersonic has launched its fixed-LTE packages in South Africa, offering a fibre-like broadband service that runs on MTN’s LTE network.
This is great news for people who live in areas without fibre coverage but still want high-speed broadband.
From R399 per month for 60GB Anytime and 60GB Night Owl data, these users will be able to enjoy faster Internet connections and subscribe to streaming services at a more affordable rate.
This could mean trouble for traditional media players like DStv, as the satellite broadcasting service is already losing Premium subscribers in South Africa.
A major reason many people are cancelling their DStv subscription is to switch to high-speed broadband and subscribe to services like Netflix or Amazon Prime Video instead.
MyBroadband spoke to Supersonic MD Calvin Collett about the ISP’s new fixed-LTE offerings and how they could affect traditional media companies like DStv.
Cord-cutting and competition
Collett said that for the price of DStv Compact, you could get the base 120GB fixed-LTE package from Supersonic, which could be an attractive offering to many customers.
“If we use DStv Compact for R399 per month as an example, there are 7 million subscribers in that space, many of whom might prefer to spend that money on high-speed broadband.”
“Competing with DStv isn’t our focus, but at the end of the day, fibre and fixed-LTE are competing against traditional satellite media players.”
“We are not specifically targeting that base, but there is a wallet there, and if customers feel they would rather substitute DStv for fixed-LTE, then our offerings are the best choice.”
The pricing of Supersonic’s fixed-LTE packages paired with the wide coverage of MTN’s network in areas without fibre means that the service could see high levels of adoption around the country and convert many users from DStv to online streaming services.
Collett said that Supersonic has a plan for content service partnerships, too, having already signed an agreement with Netflix.
“We have already signed a Netflix agreement, which we are looking at launching in the second quarter of next year,” said Collet.
“We have to start bundling Netflix, Amazon Prime, and all of those content services into our offerings. You can’t have one or the other, you have to have all of them,” he said.
Offering promotional prices or bundled content services with its fibre and fixed-LTE services would be another attractive proposition to potential cord-cutters.
Collett noted that Supersonic is also talking to MultiChoice about bundling content into their fibre packages.
“We are talking to the all the content players,” Collet said. “We are even talking to MultiChoice about bundling their IP subscription products into our fibre service.”