ITV

Category: Cable TV

  • Siti Cable promoters pump in Rs 102.75 crore

    Siti Cable promoters pump in Rs 102.75 crore

    MUMBAI: India’s leading multi system operator (MSO) Siti Cable today announced to the Bombay Stock Exchange (BSE) that it had received an injection of Rs 102.75 crore from its promoters. This is the second tranche after the Rs 81 crore its promoters had pumped in March 2013.

     

    The announcement to the BSE states that “as per the terms of the 16.2 crore warrants issued on 19 March 2013 on preferential basis the allotment committee of the board of directors has upon receipt of the balance of 75 per cent consideration aggregating to Rs 102.75 crore approved allotment of 6.85 crore equity shares upon conversion of equal number of warrants at an issue price of Rs 20 per share to the allottees – Essel Media Ventures and Essel International.”

     

    Sources within Siti Cable point out that the promoters led by Zee and Essel group chairman Subhash Chandra is extremely bullish on the MSO’s prospects post completion of cable TV digitisation  nationally.

     

    The company’s CFO Sanjay Goyal confirms to indiantelevision.com that “the company had received clearances in March 2013 to bring in Rs 324 crore from the promoters in four tranches. As part of that Rs 81 crore flowed in that month itself. Though the promoter group had until September 2014 to bring in the rest, they plan on infusing the remainder of the money before 31 March 2014 to speed up the digitisation push.”

     

    The company’s CEO VD Wadhwa had in an interview to indiantelevision.com in January 2014 said that “Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6 to 7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore. The funding of Phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.”

     

    In September 2012, when the company had announced that it was raising Rs 324 crore via warrants to promoter firms, it was reported that after completion of the entire exercise, he total promoter shareholding will rise to 73.08 per cent from 63.43 per cent and that of the public will drop to 26.92 per cent from 36.57 per cent.

     

    Also read:

    Siti Cable gets Rs 810 mn first tranche from promoters

    WWIL to raise Rs 3.24 bn via warrants to promoter firms

  • After Manthan, SitiCable tries to poach DTH customers

    After Manthan, SitiCable tries to poach DTH customers

    KOLKATA: Sometime back, city-headquartered Manthan Broadband Services announced a scheme to poach Dish TV customers after the DTH provider created sub-brand ‘Zing’ to offer STBs free of cost and target regional markets.

     

    Now, SitiCable Network is all set to follow in Manthan’s footsteps with an exchange scheme for DTH customers so they can opt for SitiCable services without having to pay anything for STBs as well as their installation in DAS I and II areas.

     

    According to Kolkata director Suresh Sethiya, the scheme called ‘Value for Money’ will be launched next month. Sethiya further informed that SitiCable is aiming to install another 3 lakh STBs in West Bengal by the end of April. “Customers choosing SitiCable services instead of their DTH service providers will also have the option of going for channel packages that regular customers get and this is a value for money proposition for them,” he added.

     

    How will SitiCable gain through the scheme? “Well, the scheme is to increase our market presence and not to increase our topline or bottomline. We want to be market leaders. And once we are able to convert DTH customers to our customers, we will think of monetizing it,” answered Sethiya.

     

    On the installation of an additional 3 lakh STBs, he said that the company was eager to increase its penetration in the state as cable TV digitisation was in full swing across the eastern region. “We would always try to retain its number one position here,” he said. “We are upbeat about our penetration and growth in West Bengal. In North Bengal too, we are looking at some acquisition and forming a joint venture with local partners.”

     

    While West Bengal is one of the most important markets for SitiCable in the eastern region, the company also has a good presence in Patna, Odisha and Jharkhand. A cable analyst said on the condition of anonymity, “The eastern region accounts for around 40 per cent of the revenue to SitiCable and is one of the most important markets for the company.”

     

    The company is also present in six out of the seven north-eastern states. Commenting on Manthan’s scheme and now SitiCable, the cable analyst said, “In the coming months, we expect more such announcements by players of different categories to poach each others’ business and clients.”

  • Home Cable Network approaches TRAI against Star Sports

    Home Cable Network approaches TRAI against Star Sports

    MUMBAI: Delhi-based multi-system operator (MSO) Home Cable Network, which has for long been facing issues with Star Sports channels, has now written to the Telecom Regulatory Authority of India (TRAI) seeking its intervention in the resolution of the matter, which first arose in November 2013, after the interconnection agreement between the MSO and Star Sports expired on 31 October, 2013.

     

    Home Cable Network, in its letter to TRAI, has said that since expiry of the agreement with Star Sports, it has found abnormalities in the rates charged by the broadcaster. “We have been making representations to Star Sports executives, informing them that the rates charged on a per subscriber basis are not at par with the rates being charged by the network to various other MSOs. Due to this, our business is getting adversely affected,” reads the letter, a copy of which is in the possession of indiantelevision.com.

     

    “We have always been asked by Star Sports representatives to either sign on the exaggerated subscriber base with CPS rates or sign up on RIO rates which again are five to ten times higher as compared to the rates offered by them to favoured MSOs,” the letter further states.

     

    The move comes after the 10 February release of the TRAI regulation on content aggregators. “It was in this regulation that TRAI itself noticed irregularities in interconnection agreements. The regulation was an eye-opener, wherein MSOs like us were informed that the rates being charged from non-vertically integrated DPOs were in some cases higher by 62 per cent as compared to vertically integrated DPOs.

     

    The TRAI also brought to our notice that the rates charged by broadcasters to smaller, non-vertically integrated DPOs were higher by about 85 per cent as compared to vertically integrated DPOs,” said Home Cable Network managing director Vikki Choudhry.

     

    He informed that Home Cable Network has approached TRAI under clause 5.11 of the “Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulations, 2012” to facilitate the “process of entering into an agreement between Home Cable and Star Sports with just and equitable terms and conditions which help in creating a level playing field between the competing MSOs.

     

    The MSO has given a period of seven to ten days to TRAI to respond to its letter. “After the expiry of this tenure, we will approach The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against Star Sports,” Choudhry said.

     

    In the case against Star Sports channels, Home Cable Network plans to make TRAI respondent number one and Star Sports respondent number two. “If TRAI is unable to create level playing fields, MSOs will start making the regulator a party in the disputes with the broadcaster,” Choudhry concluded.

  • Jaipur LCOs to form cooperative, set up own headend

    Jaipur LCOs to form cooperative, set up own headend

    MUMBAI: Local cable operators (LCOs) feel threatened with compulsory digitisation of cable TV services. LCOs own the end subscribers, but do not have the bargaining power with broadcasters and also access to funding.

     

    This has led to an increasing trend towards LCO consolidation, if not through the mergers and acquisitions route then through formation of associations and unions, especially in Gujarat, Maharashtra, Kerala and Karnataka, states the FICCI-KPMG media and entertainment industry report 2014.

     

    Now, nearly 220 of the about 250 LCOs in Jaipur, Rajasthan have decided to come together to protect their business. The LCOs are looking at forming a cooperative and setting up their own headend.

     

    The move comes as many LCOs are unhappy with the monopoly of the multi-system operators with the progressing digitisation.

     

    “It is at a nascent stage, but we are tired of the MSO monopoly here in Jaipur and hence looking at setting up a cooperative and converting into an independent MSO,” says a cable operator from Jaipur who is currently taking feeds from Hathway Cable & Datacom.

     

    The cooperative has been set up under the banner Jaipur Cable Operators Welfare Society. The LCOs are meeting regularly to finalise details.

     

    While the initial investments will be made by the LCOs, they will also approach banks for loans to meet the investment demands. “We are unhappy with the way things are moving in the state. Neither the Telecom Regulatory Authority of India nor the Ministry of Information and Broadcasting is ready to listen to us. And so we have decided to take this move,” says the LCO.

     

    As of now, four lakh set top boxes have been seeded in the state. “The Jaipur cable operators are in talks with us as they are looking at setting up a cooperative. We will be meeting in April in Mumbai to discuss further,” informs Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo.

     

    It is not only in Jaipur that the LCOs are coming together to form cooperatives. While earlier such cooperatives were set up in Chennai, Delhi, Bengaluru and Kolkata, now LCOs are coming together in Mumbai, Jaipur, Jodhpur and parts of Madhya Pradesh to set up their own headends.

  • TDSAT directs Hathway Cable to pay Rs 9 crore to Star Sports

    TDSAT directs Hathway Cable to pay Rs 9 crore to Star Sports

    MUMBAI: The country’s leading mult-system operator (MSO) Hathway Cable and Datacom and Rupert Murdoch-owned sports broadcaster Star Sports are engaged in two legal battles in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

     

    In the first case, the TDSAT has directed the two parties to settle their dispute over the outstanding dues in the tribunal’s mediation centre. In the interim, in an order last week, the TDSAT had ordered Hathway Cable to pay Rs 8.57 crore to Star Sports within one week in settlement of some of the dues.

     

    Hathway Cable has already made the Rs 8.57 crore payment. The MSO and the sports broadcaster will meet at the mediation centre on 27 March to discuss and settle issues over other payments that are due to Star Sports.

     

    The order reads: “The petitioner admits the dues to the tune of Rs 8,57,18,075. It is further stated on behalf of the petitioner that Rs 1,16,12,554  was  deducted as tax payable at source and the petitioner will give the requisite certificates to the respondent within a week from today. The difference between the dues claimed by the respondent and admitted by the petitioner is thus in the vicinity of Rs 1.93 crore and odd. At this stage, it also needs to be noted that according to the respondent two cheques which added up to Rs 60,27,135 and which are shown in the petitioner’s statement of accounts as having been given to the respondent were not actually received by it. This amount would, therefore, be subject to verification.  In case the cheques have in fact not been given to the respondent the petitioner must pay the admitted amount of Rs 8,57,18,075 plus Rs 60,27,135. The aforesaid payment must be made to the respondent within one week from today i.e. by 17.03.2014.”

     

    In another case filed by Star Sports against the MSO, the sports broadcaster has claimed that in the DAS phase I cities of Mumbai and Delhi, Hathway Cable has been violating the regulatory process by removing Star Sports out of its channel packs and placing them as a la carte without reducing the pack price or substituting the channels. It claims that the MSO is charging additional money for adding the channels above the pack.

     

    This case will come up for hearing on 19 March. TDSAT has already asked Hathway Cable to file an affidavit showing that it is complying with the regulations, the number of subscribers who have requested Star Sports and the number of subscribers for whom Star Sports has been activated.

  • Hathway Cable’s Jagdish Kumar Pillai resigns as director of JV Hathway Bhawani

    Hathway Cable’s Jagdish Kumar Pillai resigns as director of JV Hathway Bhawani

    MUMBAI: Mumbai-based multi-system operator (MSO) Hathway Bhawani Cabletel & Datacom has appointed Samson Jesudas as the company’s joint managing director.

     

    Also, Hathway Cable & Datacom CEO Jagdish Kumar Pillai has resigned as director of Hathway Bhawani. Hathway Cable & Datacom is a joint venture partner in Hathway Bhawani.

     

    “It is an operational decision. Bhawani is a small entity and with Jagdish being involved in a number of issues, this seemed the right decision,” says an official from Hathway Cable & Datacom.

     

    The changes will take place immediately. “The board has already approved it. Now we are inviting the stakeholders to approve the appointment of Jesudas as the joint managing director,” he adds.

     

    Jesudas has been appointed as the joint MD for a period of three years, till 2017. “Jesudas is an old hand and he seemed to be the right choice,” the Hathway official feels.

  • Manthan Broadband eyes customers in DAS phases I and II with lucrative deals

    Manthan Broadband eyes customers in DAS phases I and II with lucrative deals

    KOLKATA: The ongoing Cable TV Show 2014 in Kolkata became a platform for the Kolkata-headquartered cable TV multi-system operator (MSO) Manthan Broadband to make few lucrative deals to consumers. The show at the Netaji Indoor Stadium has witnessed an amazing response in the first two days and thus Manthan took an opportunity to woo the direct-to-home customers as it announced that any customer from the Digital Addressable System (DAS) phases I and II if switches to Manthan, he won’t have to pay anything for the set top boxes (STBs) and the installation charges.

     

    However, few terms and conditions apply as the customers will have to opt for the ‘Super Sunday Pack’ at Rs 320 per month. “As a fair offer, we have informed to all our affiliated local cable operators (LCOs) that customers will just have to pay five months subscription fees and can enjoy the Manthan cable services for six months,” said Manthan Broadband Services director Sudip Ghosh also adding that the offer is mainly aimed at high-end customers. “With this offer, a customer can save around Rs 1500 as of now,” he said.

     

    According to Ghosh, by the end of May, the MSO is aiming to poach around 50,000 connections. It is present in Kolkata, Howrah and Ranchi with around 7.5 lakh STBs in DAS I and II.

     

    Interestingly, cable TV analysts think that the region is going to witness such offers from more players in the region despite of DTH penetration being low in the region. The DTH connections in the region has just crossed the 5 lakh mark.

     

    “Last week Dish TV created a sub brand Zing to target regional markets and the STB offer was at a lower price.  And now cable TV industry players like Manthan waging a war on DTH players. More such announcement by different players can be expected to poach others’ customers,” said an analyst.

  • JAINHITS to invest Rs 1,500 crore on 3,000 mini headends by Dec 2014

    JAINHITS to invest Rs 1,500 crore on 3,000 mini headends by Dec 2014

    KOLKATA: JAINHITS, a provider of headend-in-the-sky (HITS) based services to cable operators, would invest Rs 1,500 crore for setting up over 3,000 mini down-link headends in 640 districts across the country by December 2014.

    “We plan to invest Rs 1,500 crore on the installation of mini downlink headends. We have partnered with Motorola (now ARRIS) for technology and Intelsat for satellite engagement,” JAINHITS’ National Sales Head Jeet Narayan Singh told Indiantelevision.com, on the sidelines of ‘Cable TV Show 2014’.
    With the county set to witness digitalisation of around 100 million homes by the end of the current year, the company is looking at a market share of around 25 per cent.

     

    Singh did not elaborate on the sources of the funds needed for setting up of the mini headends.
    “From May onwards, we aim to install 200-300 headends every month,” he said.

    The company would also strengthen its presence in the growing eastern India market. Singh said the eastern Indian market has more than 25 million television homes, providing a significant growth opportunity for the company.
    Talking about headends in the eastern region, Singh said JAINHITS has already installed 20 headends in the eastern region and four of them are already operating in West Bengal alone. Including these, JAINHITS has so far installed 250 mini headends.

     

    “Our DTN (direct to network) service based on the headed-in-the-sky offers triple service offering including video, voice and data,” he said.
    Currently, JAINHITS offers more than 250 television channels and plans to soon provide full HD and multi-screen services. “We plan to offer 100 HD channels in 2 phases,” he said.

    “We aim to convert the LCOs (local cable operators) to MSOs (multi-system operators) with minimum cost and provide all end-to-end solutions for digital cable and broadband services,” he said.

  • Case by MSOs challenging Entertainment Tax to be heard on 27 May by DHC

    Case by MSOs challenging Entertainment Tax to be heard on 27 May by DHC

    NEW DELHI: Three multi-system operators were given interim relief in January in the entertainment case issue. In January, the case was adjourned to 13 March and today has further been adjourned to 27 May by the Delhi High Court. However, the HC said that the stay order issued earlier in January to multi-system operators in entertainment tax issue will continue.

     

    DEN Networks, Hathway Cable & Datacom, and Siticable had moved the court seeking protection against the Entertainment Tax Officer’s order to pay entertainment tax.

     

    Acting Chief Justice B D Ahmed and Mr Justice Siddharth Mridul gave the order on a plea by counsel for the petitioners.

     

    DEN Networks, Hathway Cable & Datacom, Siti Cable and InCable were ordered to pay entertainment tax due since April 2013.

     

    Orders were issued directing the four MSOs to file returns and deposit the pending tax amount with interest under the Delhi Entertainment and Betting Tax Act and Rules, 1996.

     

    The MSOs argued that it was the local cable operator who should pay the entertainment tax. They had moved the Court to prevent any coercive action.

     

    DEN and Hathway argued in the last hearing that they are not liable to pay entertainment tax from April since they have started consumer billing only from November. DEN also argued that the entertainment tax must be collected only on actual collections. The MSO also sought clarity from the tax department whether entertainment tax is paid on per subscriber or per set-top box (STB) basis. While Siti Cable adhered to pay entertainment tax, it challenged the quantum of the tax. IMCL 

  • Kolkata MSOs to provide value added services to consumers

    Kolkata MSOs to provide value added services to consumers

    KOLKATA: With an aim to provide value added services (VAS) to customers in the wake of digitisation of cable television, the multi-system operators (MSOs) in the eastern region are exploring opportunities to release regional movies on cable TV before it is released in the theatres to generate more revenue. 

     

    According to Siticable director Suresh Sethia, the MSO is in discussion with producers for premiere shows of regional movies on its cable channel as part of value added services.

     

    “These services can be implemented once the billing process is properly executed, which could take anywhere around six months to complete,” said Sethiya while addressing the audience at the Cable TV Show 2014 in Kolkata. 

     

    The service is similar to the ‘Movie-on-Demand’ platform of the direct-to-home (DTH) players.

     

    The charges for a newly released movie will vary between Rs 50 and Rs 100 for a day, remarked Sethia. “The producers, MSOs, LCOs and the customers-all will benefit by the move,” he said.

     

    Industry experts say that even if a MSO charges Rs 40- Rs 50 for a movie, with 50 per cent of its users booking the show, the producer can get back a substantial amount of his investment by premiering the movie on cable TV. 

     

    Siticable currently caters to around 20 lakh users in the eastern region. “The local cable operators will also have a share,” Sethia informed.

     

    Another prominent MSO, GTPL Kolkata Cable & Broadband Pariseva Ltd (GTPL KCBPL) is also looking forward to tap this opportunity with its 7.5 lakh user base in the eastern region. 

     

    “We are actively discussing on such value added services. But it may take at least three months to execute the process,” said GTPL KCBPL managing director Bijoy K Agarwal.