ITV

Category: Cable TV

  • Arasu reports Rs 181.91 crore revenue in 2014-15

    Arasu reports Rs 181.91 crore revenue in 2014-15

    MUMBAI: J. Jayalalithaa owned Tamil Nadu Arasu Cable TV Corporation’s (TACTV) revenues have seen an upward trend after it was revived by the present AIADMK regime. The multi system operator (MSO) has reported revenue of Rs 181.91 crore in 2014-15 from Rs 2 crore it had reported in 2010-2011.

     

    As per the Information Technology Department policy note tabled in the State Assembly, Arasu’s revenue rose by 64.3 per cent between 2011-2012 and 2014-15, in view of growing subscriber base, a PTI report said. The MSO had reported revenue of Rs 64.8 crore in 2011-12. 

     

    The increase in revenue, as per the report, was due to increasing subscriber base and tapping revenues from private local channels.

    While the MSO has so far not been granted the licence to operate in the DAS areas, its cable subscribers have grown manifold. Arasu, which in September 2011 had 4.94 lakh subscribers in Tamil Nadu, currently serves 70.52 lakh subscribers through 26,246 local cable operators (LCOs). 

     

    Additionally, realizing the need for having a broadband base in order to grow the average revenue per user (ARPU), Arasu entered into a memorandum of understanding (MoU) with RailTel Corporation for providing broadband and internet services through LCOs. 

     

    As per the PTI report, the Department of Telecommunications under the Ministry of Communication and Information Technology has granted the Unified License—ISP Category ‘B’ authorisation for offering the broadband and internet services.

     

    As a pilot project, around 1000 internet connections, through 35 LCOs have been provided and the service quality is being closely monitored. The government is taking steps to popularise internet service through LCOs in order to increase connections in the state.

  • Hathway gets RBI approval for upping FDI limit to 74%

    Hathway gets RBI approval for upping FDI limit to 74%

    MUMBAI: After receiving approval from the Foreign Investment Promotion Board (FIPB) for increasing the foreign investment limit from the current 49 per cent to 74 per cent, multi system operator (MSO) Hathway Cable and Datacom has received a nod from the Reserve Bank of India (RBI) as well.  

     

    The RBI granted its approval to the MSO for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs, through primary market and stock exchanges up to 74 per cent of the paid up capital of the company under Portfolio Investment Scheme post approval of the same by FIPB.

     

    “This would be subject to the Regulation 5(2) of FEMA Notification No.20/2000 RB dated May 03, 2000 (as amended from time to time) issued under FEMA, 1999,” the notice said.

     

    RBI has also advised all custodian banks that since the foreign share holding by FIIs/RFPIs in Hathway have gone below the revised threshold limit stipulated under the extant FDI policy, the restrictions placed on the purchase of shares vide its letter dated 20 February, 2015 are withdrawn with immediate effect and hence equity shares of Hathway can now be purchased through primary market and stock exchanges.

  • Q1-2016: Cable TV in India – Sequential quarter revenues down, broadband shines

    Q1-2016: Cable TV in India – Sequential quarter revenues down, broadband shines

    Indian Cable TV is a long haul work-in-progress is what we had said last quarter. The results of the four sample companies in the quarter ended 30 June, 2015 (Q1-2016) in that report seem to endorse this fact. All four companies comprising the big three – Hathway Cable and Datacom Limited, Den Networks Ltd, Siti Cable Network Limited and the minnow – Ortel Communication Limited reported a quarter on quarter (QoQ) drop in total income from operations (TIO or revenue) in the current quarter. As expected, broadband subscribers and revenue continues to grow.

    Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore.

    (2) Some figures are approximate.

    (3) Generally other income has not been factored in for EBIDTA figures in the report.

    Performance

    Though Den Networks’ and Hathway’s YoY results in the current quarter deteriorated, QoQ, both performed better, albeit both the cable companies reported losses. Siti Cable’s loss in Q1-2016 increased YoY and QoQ, and though regional player Ortel returned a profit in the current quarter as compared to a loss in Q1-2015, its Q1-2016 profit was less than half the profit reported in the immediate trailing quarter.

    Over the last few quarters, Den Networks’ financial performance has shown a marked decline. From a company that reported profit after taxes, it has started reporting a loss. Without considering other income, the company reported a negative EBIDTA of Rs 4.67 crore as compared to the operating profit of Rs 57.16 crore in Q1-2015 and a higher operating loss of Rs 5.97 crore in the immediate trailing quarter. However, the company’s Cable TV segment reported a higher QoQ EBIDTA in Q1-2016 of Rs 18 crore (6.9 per cent margin) as compared to the Rs 14 crore (5.3 per cent margin) in Q4-2015, but a lot lower than the EBIDTA of Rs 69 crore (27 per cent margin) in Q1-2015.

    Hathway’s EBIDTA in the current quarter declined 25.4 per cent to Rs 32.73 crore (12.8 per cent margin) as compared to the Rs 43.87 crore (17.5 per cent margin) in the corresponding year ago quarter but was 5.7 per cent more than the Rs 30.98 crore (11.5 per cent margin) in the immediate trailing quarter.

    Siti Cable’s EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and margin expansion by 501 bps QoQ,” explains Siti Cable executive director and CEO VD Wadhwa.

    Ortel’s EBIDTA in the current quarter improved by 24.1 per cent to Rs 10.84 crore (26.7 per cent margin) as compared to the Rs 8.73 crore (22.1 per cent margin) in Q1-2015, but declined 34.5 per cent as compared to the Rs 16.55 crore (36.9 per cent margin) in the immediate trailing quarter.

    Ortel president and CEO Bibhu Prasad Rath said, “Overall growth was delivered on the back of steady contribution from Cable TV and Broadband segments supported by continued momentum in the Infrastructure Leasing segment. Significant growth in subscriber base, deeper penetration, enhanced product offerings and a strong team, should enable us to notably improve our performance going forward.”

    Total Income from Operations

    Please refer to the figure below. Den Networks, the company with the largest TIO among the four, reported TIO at Rs 265.60 crore, 11.1 per cent less than the Rs 298.81 crore in Q1-2015 and 1.7 per cent lower than the Rs 270.30 crore in Q4-2015. The company’s loss in the current quarter at Rs 51.89 crore was lower than the Rs 61.15 crore reported in the immediate trailing quarter Q4-2015. The company had posted a profit of Rs 1.12 crore (0.4 per cent margin) in the corresponding year ago quarter – Q1-2015.

    Though Hathway reported 5.7 per cent growth in standalone TIO in Q1-2016 to Rs 264,41 from Rs 250.11 crore in Q1-2015 QoQ, its TIO was 2.1 per cent lower than the Rs 270.03 crore in Q4-2015. Hathway’s loss in the current quarter widened to Rs 43.91 crore as compared to the Rs 0.93 crore in Q1-2015, but was considerably lower than the Rs 76.99 crore in Q4-2015.

    Siti Cable reported TIO of Rs 228.09 crore in Q1-2016, which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015. The company reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore and a loss of Rs 34.13 crore in Q4-2015.

    Ortel reported 20.5 per cent growth in TIO at Rs 40.60 crore in Q1-2016 as compared to the Rs 33.69 crore in Q1-2015, but 9.6 per cent lower than the Rs 44.91 crore in Q4-2015. Ortel reported profit after tax (PAT) of Rs 2.44 crore (six per cent margin) as compared to a loss of Rs 1.16 crore in the corresponding year ago quarter, but Q1-2016 PAT was less than half (lower by 56.8 per cent) the PAT of Rs 5.65 crore (12.6 per cent margin) in the immediate trailing quarter.

    Cable TV (Video) Subscription Revenue

    Subscription revenue in the current quarter dropped QoQ in the case of Siti Cable and Hathway, while both Den Network and Ortel saw an increase in YoY and QoQ subscription revenue. At the same time, all the companies have reported higher digitisation numbers in DAS and non-DAS areas. Siti Cable and Ortel have reported a gain in subscription numbers as well. While Den Networks and Hathway have reported flat or slightly higher digital as well as analogue average revenue per user (ARPU), Ortel has reported a slight drop in both ARPUs. 

    According to company sources, Siti Cable, which is the biggest player among the four sample companies in terms of cable TV subscription revenue, had flat QoQ ARPUs in Q1-2016, while YoY ARPUs showed double digit growth. The company claims that its subscriber base has increased by two lakh (all digital) to 107 lakh as it expanded its footprint by entering into 12 new towns across India as a part of the ongoing voluntary digitization process in order to be compliant with the DAS phase III digitisation deadline.

    Despite the flat QoQ ARPUs and higher subscription numbers, Siti Cable’s cable TV subscription revenue fell QoQ because the company had initiated strict measures against erring LCOs and had switched off signals to the extent of about four lakh cable TV consumers, as per industry sources.

    “During the quarter, we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” revealed Wadhwa. A source told Indiantelevision.com that Siti Cable’s strict measures seem to have worked and signals have been resumed to the subscribers, but that it would take time to reflect the improved numbers in its financials.

    Ortel’s Rath added, “I am also pleased to share that over and above the 542,217 RGUs (revenue generating users) as on 30 June, 2015, we have signed buy out agreements with multiple LCOs with total estimated RGUs of 33,000, which would be integrated into Ortel’s last mile network going forward. So we remain on track and are confident of achieving our target of one million RGUs by March 2017 backed by our LCO buy out strategy and focus on organic growth both in broadband and cable TV.”

    Pay channel Costs

    Please refer to the figure below that represents the Cable TV costs paid by the four sample companies. 

    The big three reported a QoQ fall in pay channel costs, while in the case of Ortel, pay channel costs rose. This does not mean that a la carte has become a reality and the multi-system operators (MSOs) are only paying for what their subscribers are paying. It’s just that this quarter, balancing amounts have been paid to a broadcast aggregator, since excess payments had been made until Q4-2015. 

    Diverting from the performance for a bit, a source from an MSO says, “As a matter of fact, it’s the big broadcasters that are resisting a la carte. A la carte will affect their overall advertisement revenues for packaged deals across the multiple channels within their fold.”

    Internet subscription revenue

    This is one avenue that most cable companies are looking at as their business and revenue growth alternative. Internet ARPUs in India are much higher – to the extent of 3 to10 times the ARPUs from cable television. All the four sample players in this article reported YoY growth. The big three- Hathway, Den and Siti Cable also reported QoQ revenue growth, while Ortel’s internet subscription revenue remained flat. Higher subscription numbers, higher ARPUs brought in the accelerated revenue growth for Hathway, Den and Siti Cable. Typically, broadband ARPUs for the big three were in the range of Rs 750 in Q1-2016 as Rs against 650-700 in Q1-2015 and Rs 720-750 in the previous quarter.

    Among the four, Hathway with an initial higher internet subscriber base in excess of four lakh plus, reported a growth of 50,000 subscribers to bring its total subscriber numbers to 4.6 lakh in Q1-2016. Already its internet revenue subscription has a reasonably big share in its overall revenue pie. Comparatively, the other three have internet subscribers than number in just tens of thousands, though all have reported reasonable YoY and QoQ growth in subscribers.

    Ortel reported a slight depletion in ARPUs and hence the flat internet subscription revenue despite a higher QoQ subscriber base. Ortel’s broadband RGUs in the current quarter grew 4.1 per cent to 60,900 from 58,519 in Q4-2015. Ortel also launched up to 50 Mbps DOCSIS 3.0 Broadband Internet in Odisha. The company’s broadband ARPUs in the current quarter also declined by Re 1 to Rs 393 from Rs 394 in Q4-2015.

    End Points

    At present, most MSOs have two separate arrangements with broadcasters – one for Digital Addressable System (DAS) areas and another for non DAS areas. Recently the Essel Group that operates both carriage platforms – DTH though Dish TV as well cable TV through Siti Cable – formed a common entity called “COMNET” to help synergize strengths of both entities in dealing with broadcasters. Siti Cable says that the primary reason for forming this venture was to ensure that consumers have access to quality content at affordable prices. This move would assist in keeping content cost in consonance with consumer ARPUs and market realities. 

    Players across mature markets such as the US continue to report a fall in video subscribers – to that extent that most companies there have higher broadband subscribers than video subscribers. Such a scenario is not probable in the near future in India, but cable TV players do face competition from wireless internet players and mobile companies as well as from other devices as a mode of entertainment rather than the idiot box. Carriage or placement fees could continue as bargaining currency in the near future.

    Once a la carte becomes a reality, to some extent, one could infer that if the pay channel costs are down, it’s because subscribers have used the option, and not that the player has lost more subscribers than it gained. In theory, DAS has made it possible for carriers to pay broadcasters if and when the subscriber subscribes for pay channels. It now remains to be seen if the players in the industry allow the theory to be put into practice. Cable TV subscription revenues and ARPUs could fall if players don’t play it right.

    The response to the Hinduja’s HITS (headends in the sky) platform from local cable operators (LCOs) has been tremendous, if one were to go by initial reports. The DTH industry has started making inroads into DAS phase III and IV areas and could grab more than the 30 to 40 per cent of the subscribers that it did in phase I and phase II.

    As has been pointed out by industry experts, just the seeding of set top boxes (often non-BIS compliant STBs) does not mean implementation of DAS as it was truly meant to be. It can be safely reiterated that there’s a lot of work to be done by the industry.

  • Time Warner promotes Priya Dogra as SVP, mergers & acquisitions

    Time Warner promotes Priya Dogra as SVP, mergers & acquisitions

    MUMBAI: Time Warner Inc. has promoted Priya Dogra as senior vice president, mergers and acquisitions.

     

    In this role, Dogra will oversee Time Warner’s global mergers and acquisitions efforts to progress the company’s long-term corporate strategies and help define capital allocation priorities.

     

    Time Warmer executive vice president and CFO Howard Averill said, “We are thrilled that Priya will now lead our M&A group. She has been instrumental in originating, evaluating and executing critically important transactions across the company. Given her deep understanding of the industry, strong transaction execution skills and collaborative nature, we couldn’t hope for a more effective leader for this group.”

     

    Dogra joined Time Warner in 2009 as a director in the mergers and acquisitions group, and became the group’s vice president three years later. In this role, she worked closely with Time Warner’s divisions and served as the primary corporate liaison for divisional corporate development functions including the acquisition of content assets and television networks internationally as well as investments in digital media and over the top assets across the company.

     

    Prior to joining Time Warner, Dogra was vice president in the Technology, Media and Telecom investment banking group at Citigroup where she spent seven years based out of the New York, London and Toronto offices covering numerous clients such as Time Warner, Sony, Discovery and Bertelsmann, and advising on a broad range of transactions including acquisitions, divestitures and financings.

  • Hathway – MSM imbroglio: MSO to not renew deal

    Hathway – MSM imbroglio: MSO to not renew deal

    MUMBAI: In a move that would surprise many, multi system operator (MSO) Hathway Cable and Datacom has decided to not renew the contract with MSM Media Distribution (MSMMD) in DAS phase II areas.

     

    As reported first by Indiantelevision.com, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on 14 August had directed Hathway to pay Rs 14.56 crore towards subscription dues to MSMMD for DAS Phase I till the expiry of the agreement i.e. 31 October, 2015 in three instalments.   

     

    In a statement issued today, Hathway said that it will not renew the contract with MSMMD for DAS phase II. It may be recalled that this contract between the two expired on 31 March, 2015 and was not renewed by Hathway then.

     

    “Dripping ratings and average content cannot be a base for a broadcaster to take distribution platforms for a ride by demanding hefty growth year on year. In fact, it requires major correction in the subscription fees that the broadcaster charges. The concern with Sony Entertainment Television, the flagship channel of Multi Screen Media (MSM), has been witnessed over the last year wherein their content lacks appeal and demand as compared to other leading networks and does not deserve a growth, which was raised by us to the broadcaster. All the other channels in the MSM bouquet are also irrelevant and don’t offer any compelling content,” said a Hathway spokesperson.

     

    Hathway has said that in DAS I markets, where the contract expires on 31 October, 2015, it will offer MSM channels on an a la carte basis to consumers and not as part of any of the packages till the expiry of the contract.

     

    Speaking on the dues that Hathway owes the company, MSMMD executive vice president sales and marketing Makarand Palekar said, “Hathway has a huge outstanding and they haven’t paid us for seven months. MSM as a network is very patient and does not switch off channels on any platform, but Hathway has tested our patience and even if it wants to put the channels on a la carte, it will have to clear the outstanding first, which is close to Rs 15 crore.”

     

    It now remains to be seen how this story between the two parties pans out.

  • DAS: Total registered MSOs touches 349, of which 126 are provisional

    DAS: Total registered MSOs touches 349, of which 126 are provisional

    NEW DELHI: Although there are less than six months left for the completion of Phase III of Digital Addressable System (DAS) for cable television and while the Home Ministry is planning to do away with security clearance, the number of multi-system operators (MSOs) who have been given permanent registration for a period of ten years is just 349.
     
    In addition, a total of 126 MSOs have been given provisional registration. According to the last list dated 12 July, 2015 the licences of 29 MSOs had been cancelled or their files were closed.
     
    However, this figure is impressive considering that 74 new MSOs have been permitted to operate since 12 July, though a majority of them have provisional licences.
     
    While a majority of MSOs including Kal Cables have had their licences cancelled following the Home Ministry denying security clearance, some have been cancelled for non-operation. These include four cancelled in 2015.
     
    MSOs given permanent registration pan India after 12 July include Swamy Cable Network of Ahmednagar in Maharashtra for districts of Ahmednagar, Nashik 
    and Aurangabad in Maharashtra; National Cable TV Nilgiris for Gudalur, Pandalur, Ooty, Coonoor, and Kotagiri Talukas in Niligiris District; ACN Cable Pvt Ltd of Bangalore for areas of Nellore Urban and Nellore rural Mandals; Tyagi Cable Network of Budhana for Bagpat, Muzaffarnagar, Shamli and Meerut districts in Uttar Pradesh; and Valarr Gokulum of Coimbatore for District of Coimbatore, Nilgiri and Tiruppur in Tamil Nadu. 
     
    Eleven MSOs who had earlier been granted permanent licences were permitted to change their areas of operation.
      
    Provisional licences given after 12 July total 61 including one for Assam and another for Mizoram. Provisional licence had been issued prior to12 July to one MSO in Kashmir. 
     
    A majority of provisional MSOs may be made permanent when the Home Ministry begins implementing its plan for doing away with the security clearance clause for MSOs.
  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Den Networks gets Govt nod for increasing FDI to 74%

    Den Networks gets Govt nod for increasing FDI to 74%

    MUMBAI: Multi system operator (MSO) Den Networks has received clearance from the Foreign Investment Promotion Board (FIPB) to increase its foreign investment limit from the existing 49 per cent to 74 per cent.

     

    As was reported by Indiantelevision.com, on 29 July MSO Hathway Cable and Datacom had received the FIPB approval to up its foreign investment to 74 per cent, whereas Den Networks’ proposal had been deferred. Pertinent to note here is that on 14 July there was buzz that the company had received FIBP nod for the same. However, that was not the case and the MSO finally received the nod only today (13 August, 2015).

     

    With this, Den Networks, which is currently building its broadband base and also working towards digitisation in phase III and IV areas, is looking at attracting overseas capital into the company.

     

    The MSO had sought to increase foreign investment limit beyond 49 per cent and up to 74 per cent by FIIs, NRIs, FPIs, and other eligible foreign investors through route of secondary market and / or open market purchase.

     

    Earlier in March this year, the Board of Directors of Den Networks had approved the proposal to increase foreign investment limit.

     

    The decision was subject to shareholder approval (through postal ballot), FIPB nod and adherence to all other statutory requirements.

     

    Currently, FIIs hold 20.27 per cent stake in Den Networks.

  • Siti Cable seeks shareholders’ nod for raising $100 million

    Siti Cable seeks shareholders’ nod for raising $100 million

    MUMBAI: Multi system operator (MSO) Siti Cable is looking at raising up to $100 million through equity shares via public issue, private placement or qualified institutional placement (QIPs) route. The MSO for the same has sought shareholders approval. 

     

    Siti Cable will utilise the funds to meet expenditure to expand its business in phase III and IV of digitisation, ongoing acquisition of MSOs, LCOs and primary points, value added services (VAS), working capital requirements as well as to reduce debts. 

     

    The company sought shareholders’ approval to raise funds through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed rupee equivalent of $100 million.

     

    The members had approved raising of funds of up to $100 million by passing a special resolution through postal ballot in October 2014, against which the MSO has already raised Rs 221.11 crore.  

     

    “Since the validity of the shareholders’ approval as per Regulation 88(1) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘SEBI Regulations’), is 12 months, it is proposed to seek fresh approval of the shareholders in this regard,” the company said.

  • Home Ministry plans to scrap security clearance norms for MSOs

    Home Ministry plans to scrap security clearance norms for MSOs

    NEW DELHI: The Home Ministry has recently streamlined and relaxed national security clearance norms for certain sensitive sectors including the media sector, the Lok Sabha was told today.

     

    The Minister of State for Home Haribhai Parathibhai Chaudhary said the new policy guidelines include doing away with national security clearance for multi system operators (MSOs) in the media sector.

     

    The guidelines are aimed at bringing about a healthy balance between meeting the imperatives of national security and facilitating the ease of doing business and promoting investment in the country.

     

    It may be recalled that while several MSOs had been waiting endlessly for security clearances to ensure they get licences for digital addressable system (DAS) from the Government, the Home Ministry had, earlier this year, indicated requirement of fresh security clearance before renewal of permission can be considered.

     

    Then in June, the Ministry of Information and Broadcasting had asked MSO applicants to file their applications in an affidavit, wherein they would give assurance that they have no criminal cases pending against them, and that they would shut down if they were refused security clearance. However, it now seems that these steps would be done away with completely with the Home Ministry changing its stance on security clearance for MSOs.

     

    Meanwhile in the Rajya Sabha, Minister of State for Information and Broadcasting Rajyavardhan Rathore said security clearance is a pre-requisite for grant of permission to TV channels.

     

    Hence, the Ministry has not permitted any private satellite TV channel without security clearance by the Home Ministry. In cases where security clearance is denied or withdrawn, action is taken towards cancellation of permission under the Guidelines.