Cable TV

Cable subscribers switching to DTH platforms amid new tariff order implementation

Published

7 years ago

March 6, 2019

KOLKATA: While the Telecom Regulatory Authority of India (TRAI) continues to reiterate that its new tariff order will benefit all stakeholders of the cable and broadcasting industry, implementation of the new norms has witnessed a mixed response on the ground. As the ecosystem adapts to this radical change, local cable operators (LCOs) in Kolkata have started bleeding as cable subscribers are migrating to DTH platforms.

Many consumers in the city have complained that they are experiencing channel blackouts despite shifting to new packages ahead of the deadline. In addition to that, they also contended that the operators are forcing them to opt for packages and not providing any options of a-la-carte channels. As a result, several consumers have switched over to DTH platforms in order to avoid this hassle.

One of the major local cable operators in south Kolkata said they have experienced 10-15 per cent churn rate post the new tariff order implementation. On the other hand, another operator in north Kolkata has claimed that his company experienced a 20-25 per cent churn rate. Both of them have opined that the churned out subscribers are not choosing other cable operator but DTH operators only.

Both the local cable operators blamed MSOs for not having a proper system in place to make the migration smoother. According to them, the websites of MSOs are crashing due to the traffic spikes. In turn, this is hampering the process of new package selection, with the a-la-carte channel activation getting delayed.

They also pointed out that web portals of some national MSOs are malfunctioning for last two months. They added that subscribers, being unaware of the problems, are pinning the blame squarely on LCOs.

Last week the West Bengal government held a meeting with some of the stakeholders of the Indian broadcast and cable industry to understand the tariff issue and challenges in its implementation.

State government sources told Indiantelevision.com that the meeting, attended by a minister too, was called to explore what the stakeholders could do for local LCOs who have been having a trying time to convince and educate consumers, especially in rural areas of the state.

It is learnt that those who attended the meeting included senior representatives from Star India, MSO Hathway and Zee group. One of the requests made by the state government, according to official sources, was whether companies like Star and Hathway could also fund educational TVCs relating to the TRAI tariff order in the Bengali language that could be aired by the LCOs on their networks to make consumers better understand the issues relating to channel selection and their prices. Industry stakeholders, it is learnt, remained mostly non-committal on this particular matter of TVCs in Bengali.

Maharashtra Cable Operators Foundation (MCOF) committee member Asif Sayed, an LCO based out in Mumbai, too voiced a similar opinion, saying a-la-carte channel activations are getting delayed as MSO web portals aren’t equipped to manage the load.

According to him, the churn rate is actually 5-10 per cent and another 10-15 per cent may be switching off because of ongoing examinations. Hence, after one month, there would be clarity on the actual churn.

Since the beginning of tariff order rollout, many LCOs across the country have expressed their reservations about the new regulations. The 80-20 revenue share between broadcasters and DPOs has been a bone of contention, as they maintain there should be revenue cap separately for LCOs.

“NTO has come at a time industry had settled down after DAS. Obviously it's a major shift and hence causing confusion across the board. Negative propaganda does happen when any change takes place. For example when DAS was declared similar propaganda was there that MSOs are not equipped to provide channels, boxes, and that consumers are migrating to DTH. Some people strategically float these propaganda. DPOs offer packages that satisfy most consumers. If a particular MSO fails to implement that there could be migration to other DPOs which can be to DTH or to other MSOs,” KCCL CEO Shaji Mathews, a veteran in the industry, commented.

Mathews also added that the major MSOs are equipped to provide high-quality service to their consumers.

According to him, MSOs are in a better position to implement the order as cable operators are doing channel activations on ground. He added that in any case, there will be some amount of consumers who will keep jumping on both sides. He does not hold the view that there is any massive migration on either side, neither to cable nor to DTH.

“Whatever migration is taking place is driven by non-compliance of some stakeholders. While the SC has commented on the need to regulate bouquet rates in relation to a-la-carte rates, the broadcasters have taken liberty to overstep the basic objective of NTO and declare disproportionate rates. With the most important part of the NTO thrown to the wind it's as good as no NTO and is the fundamental cause of confusion. Secondly, I have come across a DTH operator in blatant violation of basic DAS itself and transmitting unencrypted channels including pay channels,” he further added.

Earlier TRAI said that in case of MSOs and LCOs, the biggest problem was discriminatory treatment by the broadcasters. As a result, it was almost impossible for smaller MSOs to get the content at an appropriate price from the broadcasters because the agreements were not transparent.

The new tariff order, however, was meant to change that and benefit both the MSOs and LCOs. While a part of cable industry continues to believe the same, a large number of LCOs, at least in Kolkata, are quite disappointed with what implementation of the new tariff order has resulted in.

Related Topics:DPO DTH LCO MSO tariff order Trai

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Cable TV

Den Networks Q3 profit steady despite revenue pressure

Published

3 weeks 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

3 weeks 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

4 weeks 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.