Cable TV

BSNL, Reliance broadband threaten cable trade

Published

23 years ago

April 18, 2003

MUMBAI: The broadcasting and cable fraternity is certainly not smiling. To add to their existing problems in an evolving market such as India, non-media companies are jumping into the entertainment delivery bandwagon.

Bharat Sanchar Nigam Limited (BSNL) has announced its foray into the broadband segment at a nominal fee of Rs 1000 per month and “free” set-top boxes. Another big gun, Reliance Infocomm, is also mulling its foray into the broadband entertainment sector.

A cable industry veteran says: “The threat of outside competition is looming large over the cable trade. The competition is not from the next-door cable operator or multi-system operator (MSO) who is eating into one’s territory but from DTH (direct to home) and from telecom companies who offer broadband services.”

Both these “attacks” come at a time when the cable industry is grappling with uncertainty related to the implementation of the conditional access system (CAS) and direct-to-home (DTH) television service.

BSNL, the country’s largest telecom service provider, will offer broadband services in several cities in a phased manner by the end of 2003. BSNL will reach out to the service using existing last-mile copper wire connectivity and xDSL (Digital Subscriber Line) technology bypassing the fibre optic networks. Reliance Infocomm is also expected to make its foray around the same time. The content aggregation system for the project is already in place.

Cable industry sources say that these behemoths could wipe out the smaller cable operators. All these threats will lure away consumers (seeking content) from the cable distribution networks.

Also, broadcasters who want consumers to get into the habit (mode) of paying for content are opposing telecom operators who would offer TV content and other services under a single umbrella to consumer households.

A cable operator who is also a Reliance Infocomm mobile phone services user says (on conditions of anonymity): “Reliance is already aggregating content for its mobile telephony services and has joined hands with several content providers including broadcasters and news channels. Everything is available on the small mobile screen from the central server. It won’t be difficult for Reliance to make the transition from the small mobile screen to the larger TV screen.”

Jaideep Pujari, a software engineer, agrees: “The business of content providing has undergone a plethora of change with the digitalisation of content. Digitised content can be stored and distributed in various ways – DVDs, DTH, broadband, Internet, mobile telephony amongst others. There is a lot of flexibility and multiple options available in terms of quick data transfer. One need not depend on the traditional cable distribution system which has ruled India since the last decade or so!”

Industry observers say that companies such as Reliance Infocomm can leverage its fibre-optic network to provide a wide array of services to consumers. They feel that consumers will not be able to refuse a good offer from Reliance Infocomm.

“If Reliance offers a consumer a single package comprising wireless in local loop, mobile phone facilities, Internet broadband and cable TV services at a lower rate than what consumers end up paying for each individual service, will consumers refuse? Also, Reliance has deep pockets and will be able to sustain at lower margins or even losses for some time – but the cable operators will be wiped out if they offer such rates,” says a cable operator from Mahim, Mumbai.

And the fear of the cable operators is very real. According to the information available with indiantelevision.com, one of the plans being mulled by Reliance is to sell a consumer the company’s telecom services and throw in the cable service free as a sop. Later, these sops can be increased with newer services being offered – including gaming for children on cable as also on cell phones. Now if that happens, the friendly neighbourhood cablewallah can say goodbye to his business.

However, broadcasters have their own reservations against this kind of an approach wherein a telecom company offers content on demand. A programming executive working with a broadcasting company says: “If consumers can access content at their own convenience, then the concept of “prime time” disappears. Advertising revenues will be hit. Broadcasters won’t be able to charge a premium for their content offerings and existing prices will remain static or dip. Consumers will get the option of deleting ads and TV commercials.”

Telecom companies will ensure that households pay a fixed amount for popular movies and then will allow them to watch the same over a specified time interval – which could be as long as 24 hours!

Broadcasters want consumers to get into the mode of paying for content. Concepts such as interactive TV and Open TV are detrimental to their interests. One can empathise with them as programming costs are still high.

One cannot help remembering the words used by Sony Entertainment Television chief executive Kunal Dasgupta in an interview with a leading publication. “If you pay peanuts, you will get monkeys!”

Are the pampered consumers listening?

Related Topics:broadband BSNL cable commercials DTH Jaideep Pujari MSO Reliance Reliance Infocomm xDSL

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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.