Cable TV

Kolkata’s cable TV ecosystem struggles to cope with CAF

Published

13 years ago

August 12, 2013

KOLKATA: Ritika Saha, a city based Gujarati engineer, recently installed a set top box (STB) at a cost of Rs 1,400 and has still not been able to mention in writing about her preference for channels. The reason: her cable operator has not yet approached her with a consumer application form (CAF).

“I hardly stay at home. For news and updates, a cheaper DAS package is more than enough for me. If the local cable operator does not provide me with the form, I shall not have access to cable TV post August on account of no fault of mine,” says Saha, adding that her hectic schedule does not allow her to follow up with her operator.

“Had I placed the order for the STB eight months ago, it would have cost me just about Rs 800. The prices of these STBs have sky rocketed in the past few months,” she rues, little knowing that the depreciation of the Indian rupee against the US dollar has led to the rise in import cost of these boxes.

There are many in Kolkata who have not yet filled up their CAFs. This is the situation even after TRAI’s order to the cable TV ecosystem in Kolkata undergoing digitisation to complete the process of collecting subscriber details before 23 August Saha is not the only one. There are many in Kolkata who have not yet filled up their CAFs. This is the situation even after the Telecom Regulatory Authority of India’s (TRAI) order to the cable TV ecosystem in Kolkata undergoing digitisation to complete the process of collecting subscriber details before 23 August. “TRAI plans to crack the whip against any MSO that fails to abide by the deadline of submitting CAFs,” informs a Kolkata based cable operator.

CAF collection rate in Kolkata currently is about 25 per cent and should be around 60-75 per cent by 28 August,” says Siticable Kolkata director Suresh Sethia. “The implementation of DAS and its performance is not upto the mark in Kolkata,” adds media analyst Namit Dave.

According to a report issued by TRAI last month, only 20 per cent of the city’s subscriber details and choices for channels were put up in the subscriber management system as part of the digitisation process.

“The MSOs and cable operators are likely to miss the deadline,” says the Association of Cable Operators’ cable operators digitalisation committee convener Swapan Chowdhury. “Achieving the target by 30 August is next to impossible. Kolkata will miss the deadline,” he adds.

“There are many other teething problems. One, not many CAFs were in supply; Two, from past seven days only the MSOs are supplying the forms to people and three even feeding in customer details is time consuming. For an exercise so massive and with so many loopholes in the process, more time is needed,” informs Chowdhury.

While one local service provider complains of not receiving any subscriber information and management forms from his MSO, there is another MSO who says that his cable operator continues to be lethargic and has been loathe to do anything even after the forms were given to him.

Both the MSOs and LCOs will appeal to the TRAI to extend the deadline by 15-20 daysm Both, MSOs and LCOs will appeal to the TRAI to extend the deadline by 15-20 days. “The operators and MSOs can send the subscribers’ choices of package till 31 August. And the billing can start from 1 September,” informs Sethia. “Though the MSOs will not switch off channels, the decision has been left on TRAI.”

While 30 lakh STBs have already been installed in Kolkata, the steeper sticker prices – following the rupees downslide- makes digitisation of another 200,000 cable TV homes in Kolkata nigh impossible.

With the depreciation of the Indian rupee to Rs 61.70 (approx) against the dollar, the import price of STBs has gone up by Rs 500-Rs 600. And this extra burden has been passed on by the distributors to consumers, says Chowdhury, adding that for some in the low income category in Kolkata, digital cable TV looks unaffordable now. “Despite the extension of the digitisation deadline, 100 per cent achievement is not possible,” he informs.

Abhishek Cable director Rajendra Prasad Agarwal, feels that out of 35 lakh cable TV subscribers, around 30 lakh have taken STBs. “Houses with four to five cable connections have not yet taken up set top boxes,” he says. Contradicting this claim is Sethia whose estimate is that 27 lakh homes have been digitised with no analog connections left in the metropolitan area of the city.With 11.5 lakh cable TV subscribers, SitiCable is a giant in Kolkata which offers 410 channels.

Manthan Broadband Services, another big daddy has a 34-35 per cent marketshare with a 350 channel service. . “We have 6.5 lakh to seven lakh subscribers. The CAF rate is around 25 per cent as of now,” informs Manthan Broadband Services director Sudip Ghosh. According to industry sources Hathway Cable and Datacom and Digicable Network (India) have jointly achieved 5.5 lakh installations so far.

While the current average revenue per user in Kolkata is around Rs 180-Rs 200, cable operators in south Kolkata charge anything from Rs 350–Rs 475. What’s more is that operators in Shyam Bazaar and north Kolkata have been complaining that customers who are used to monthly subscription fees of Rs 120 are yelping about a hike to Rs 150. MSOs get to keep only Rs 70 on an average out of what subscribers are paying to local cable operators. “The local operators make huge profits,” informs Ghosh.

Turfs have been maintained in Kolkata with everyone maintaining their position and no mergers or acquisitions taking place, unlike in the neighbouring states of Shillong, Jaharkhand, Orissa and Assam where there has been a flurry of activity.

When asked if DTH is making inroads in Kolkata, Chowdhury says, “Since the performance of the DTH is subject to weather conditions, some dissatisfied customers will definitely opt for a digital cable connection. This can happen more so if their queries are not well addressed by the DTH players.”

So will Kolkata meet the 31 August deadline? Answers Dave, “For the next few weeks nearly 5,000 local cable operators and 14 MSOs, which provide service in DAS area will have a herculean task to perform.”

Yes it’s something the entire Kolkata cable TV ecosystem will have to jointly and collaboratively work together to achieve. Failing which, cable TV subscribers will see their cable connections cut.

Related Topics:CAF DAS package Kolkata cable TV LCO MSO Ritika Saha STB Swapan Chowdhury Trai

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Cable TV

Den Networks Q3 profit steady despite revenue pressure

Published

2 months ago

January 19, 2026

indiantelevision.com Team

MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.

Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.

Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.

The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.

In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.

Cable TV

Plugging along as Hathway tunes in steady profits this quarter

Published

2 months ago

January 17, 2026

indiantelevision.com Team

MUMBAI: In a quarter where staying connected mattered more than moving fast, Hathway Cable and Datacom kept its signal steady. The cable and broadband major reported a net profit of Rs 21.7 crore for the December 2025 quarter, marking a clear improvement from Rs 13.6 crore a year earlier, even as pressures persisted in parts of its operating portfolio.

For the quarter ended December 31, 2025, revenue from operations stood largely flat at Rs 536.6 crore, compared with Rs 511.2 crore in the same period last year. Including other income of Rs 21.1 crore, total income rose to Rs 557.7 crore, reflecting incremental gains despite a competitive media and connectivity landscape.

Profitability improved on the back of disciplined cost control and higher contribution from associates. Profit before tax increased to Rs 28.2 crore, up from Rs 19.1 crore in Q3 FY25, aided by Rs 3.9 crore in share of profit from associates and joint ventures. After tax, earnings for the quarter climbed nearly 60 per cent year-on-year.

Over the nine months ended December 31, 2025, Hathway reported a net profit of Rs 71 crore, compared with Rs 57.7 crore in the corresponding period last year. Total income for the nine months came in at Rs 1,677.3 crore, up from Rs 1,599.8 crore, while profit before tax rose to Rs 94.7 crore from Rs 84.2 crore.

A closer look at the segments shows a familiar split story. The cable television business remained under pressure, reporting a segment loss of Rs 11.4 crore for the quarter, though this narrowed sharply from the Rs 16.6 crore loss seen a year ago. In contrast, the broadband business returned to the black, delivering a modest but positive contribution of Rs 4.2 crore, helped by associate income. Dealing in securities continued to be a bright spot, generating Rs 14.7 crore in quarterly profits.

Costs stayed broadly contained. Pay channel costs, the single largest expense, rose to Rs 287.4 crore, while depreciation and amortisation stood at Rs 74 crore. Finance costs remained negligible at Rs 0.2 crore, keeping leverage risks in check.

Hathway’s earnings per share for the quarter improved to Rs 0.12, up from Rs 0.08 a year ago. The company maintained a strong balance sheet, with total assets of Rs 5,302.4 crore and total liabilities of Rs 848.9 crore as of December 31, 2025.

While structural challenges persist in the traditional cable business, the numbers suggest Hathway is slowly recalibrating its mix trimming losses where needed, leaning on associate income, and keeping the broadband engine ticking. For now, the company may not be racing ahead, but it is clearly staying tuned in to profitability.

Cable TV

Signal drop Tejas Networks’ numbers stay patchy in a volatile quarter

Published

2 months ago

January 10, 2026

indiantelevision.com Team

MUMBAI: In telecom, even the strongest signals face interference and Tejas Networks Limited’s latest numbers show just how noisy the airwaves remain. The Tata Group-backed networking firm reported unaudited standalone revenue of Rs 305.72 crore for the quarter ended December 31, 2025, up sequentially from Rs 261.37 crore in the September quarter, but sharply lower compared with the Rs 2,642.05 crore clocked in the year-ago period. The topline recovery, however, was overshadowed by a pre-tax loss of Rs 303.20 crore, widening from a Rs 473.03 crore loss in the previous quarter, and reversing a Rs 211.06 crore profit reported in the December 2024 quarter.

After tax, the company posted a loss of Rs 196.89 crore for Q3 FY26, compared with a loss of Rs 307.17 crore in Q2 FY26 and a profit of Rs 165.42 crore a year earlier. For the nine months ended December 31, 2025, Tejas Networks reported revenue of Rs 769.02 crore and a loss after tax of Rs 697.97 crore, a sharp swing from a Rs 512.67 crore profit in the corresponding nine-month period last year. The numbers reflect a year marked by execution challenges rather than demand collapse.

Costs remained the dominant spoiler. Total expenses for the December quarter stood at Rs 616.50 crore, driven by elevated material costs, employee expenses and provisioning. The company also flagged several one-offs and adjustments: a Rs 9.85 crore provision linked to the implementation of new labour codes, ₹24.35 crore in warranty provisions, and reversals related to inventory obsolescence. Earlier quarters had already absorbed heavy charges tied to contract manufacturing losses, design changes and write-downs, the hangover from which continues to weigh on profitability.

Tejas reiterated that it operates as a single reportable segment focused on telecom and data networking products and services, offering little insulation from sector-wide volatility. While revenue momentum has stabilised sequentially, the contrast with the previous financial year remains stark. For context, the company closed FY25 with audited standalone revenue of Rs 8,915.73 crore and a profit after tax of Rs 450.66 crore, underscoring how sharply the operating environment has shifted in FY26.

The results were reviewed by the audit committee and approved by the board on January 9, 2026, but they leave investors with a familiar question: when does recovery turn structural rather than episodic? For now, Tejas Networks appears to be in reset mode, balancing execution clean-up with cost discipline. In a sector where margins can be as fragile as fibre strands, the next few quarters will matter as much as the signals the company sends to the market.