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Tag: Axom Communications

  • Wadhwa says Siti Cable is continually looking for acquisitions

    Wadhwa says Siti Cable is continually looking for acquisitions

    MUMBAI: Siti Cable, part of the Essel group is not going to immediately get the benefits of the 100 per cent FDI relaxation in the TV distribution sector. This was revealed by Siti Cable executive director & CEO VD Wadhwa to TV channel Bloomberg TV a couple of days ago.

    Wadhwa said that the promoters own 71 per cent of Siti Cable Networks; with the non-promoter holding standing at 29 per cent. “At least for the next two to four quarters I don’t see any major benefits coming out to the government in terms of foreign currency inflows into the business,” he told Bloomberg TV.

    He added that the company would continue to grow both organically and inorganically in FY 2017. “The industry is going through a tight cash situation. The industry has largely been fragmented,” he stated. “Now consolidation is happening at the cable operator level, it is happening at the regional level. It is only a matter of time before it starts happening at the national level as well.”

    He revealed that his company was participating in the consolidation as post digitization it was becoming difficult for the cable operator to survive alone. “We are keeping our eye open because we have identified some of the geographies wherever we would like to expand by acquisition and wherever we see a strategic fit,” he explained.

    He pointed out to the network’s acquisitions recently in Maharashtra and Gujarat where Siti Cable was relatively weak.

    “In both these places we have expanded through partnerships. In Mumbai, we acquired 600,000 subscribers by acquiring 76 per cent in a local network Scod18. In Gujarat, we have acquired 700,000-800,000 subscribers by doing a 51:49 per cent joint venture in Gujarat,” he revealed.

    He said Siti Cable had agreed to take a 50 per cent stake in Assam-based Axom Communications as the existing promoter was comfortable in partaking of only that much equity. “The new Companies Act allows us to control an organization either through an equity stake or through the composition of the board. We chose to get a majority on the board and will be consolidating the results with Siti Cable’s financials on account of that,” he disclosed.

    Wadhwa explained that Siti Cable would be more open to taking anywhere between 51 per cent and 76 per cent stakes in cable TV ventures as it makes sense to have a partner who knows the local territory well to still be involved in the business even after acquisition or a partnership.

  • Wadhwa says Siti Cable is continually looking for acquisitions

    Wadhwa says Siti Cable is continually looking for acquisitions

    MUMBAI: Siti Cable, part of the Essel group is not going to immediately get the benefits of the 100 per cent FDI relaxation in the TV distribution sector. This was revealed by Siti Cable executive director & CEO VD Wadhwa to TV channel Bloomberg TV a couple of days ago.

    Wadhwa said that the promoters own 71 per cent of Siti Cable Networks; with the non-promoter holding standing at 29 per cent. “At least for the next two to four quarters I don’t see any major benefits coming out to the government in terms of foreign currency inflows into the business,” he told Bloomberg TV.

    He added that the company would continue to grow both organically and inorganically in FY 2017. “The industry is going through a tight cash situation. The industry has largely been fragmented,” he stated. “Now consolidation is happening at the cable operator level, it is happening at the regional level. It is only a matter of time before it starts happening at the national level as well.”

    He revealed that his company was participating in the consolidation as post digitization it was becoming difficult for the cable operator to survive alone. “We are keeping our eye open because we have identified some of the geographies wherever we would like to expand by acquisition and wherever we see a strategic fit,” he explained.

    He pointed out to the network’s acquisitions recently in Maharashtra and Gujarat where Siti Cable was relatively weak.

    “In both these places we have expanded through partnerships. In Mumbai, we acquired 600,000 subscribers by acquiring 76 per cent in a local network Scod18. In Gujarat, we have acquired 700,000-800,000 subscribers by doing a 51:49 per cent joint venture in Gujarat,” he revealed.

    He said Siti Cable had agreed to take a 50 per cent stake in Assam-based Axom Communications as the existing promoter was comfortable in partaking of only that much equity. “The new Companies Act allows us to control an organization either through an equity stake or through the composition of the board. We chose to get a majority on the board and will be consolidating the results with Siti Cable’s financials on account of that,” he disclosed.

    Wadhwa explained that Siti Cable would be more open to taking anywhere between 51 per cent and 76 per cent stakes in cable TV ventures as it makes sense to have a partner who knows the local territory well to still be involved in the business even after acquisition or a partnership.

  • Axom Communications signs bandwidth agreement with Airtel

    Axom Communications signs bandwidth agreement with Airtel

    KOLKATA: Assam-based multi-system operator (MSO), Axom Communications and Cable, has signed an agreement with telecom major Airtel for one year. The main objective of this is to have better bandwidth and reach in all the seven north eastern states, where the company operates.

    Currently, the MSO boasts of around six lakh cable TV connections in Assam including the lower and central parts of the state. It had installed a digital headend in 2009 and had laid down the fiber connecting around 250 kms from three sides of Guwahati, the commercial hub of Assam.

    Axom Communications and Cable director Sanjive Narain said that this bandwidth would easily help in connecting all the seven north eastern states. “Before the cable TV digitisation starts in full swing in phase III and IV, we have already finished 60-70 per cent of the work in Guwahati,” he added.

    “Out of the six lakh connections, more than 70,000 cable homes have been converted into digital signal even before the digitisation process has started in the state,” he explained talking about Guwahati.
    “Fiber network connectivity work is on in other states like Tripura, Nagaland, Meghalaya to name a few,” he further added.

    The company has around 10 analogue headends and one digital headend in total, informed Narain.

    It should be noted that Assam and other north eastern states are likely to digitise their cable TV homes in the phase III and IV of digitisation. “Right now the process has not started in the true sense, but the industry is getting ready,” he said.

    With a terrain where cable cannot reach easily, there is a sizeable penetration of DTH in this market. “We will convert a DTH home into cable TV home by giving a lucrative option to consumers,” he concluded.

     

  • Axom Communications aims to install 1 million STBs in NE

    Axom Communications aims to install 1 million STBs in NE

    KOLKATA: Assam based multi-system operator (MSO), Axom Communications and Cable, which already boasts of around six lakh cable TV connections in the state including the lower and central parts, is aiming to spruce up its digitisation drive.

     

    By the end of the phase IV of digitisation, it aims to install one million set top boxes (STBs) not only in Assam but also in other states of the north-eastern region.

     

    Axom Communications and Cable director Sanjive Narain says that the MSO has already installed the digital headend in the year 2009 and has laid down the fiber connectivity linking around 250 kms from three sides of Guwahati, the commercial hub of Assam. The setup of the digital headend was supported by Cisco, from whom Axom would be purchasing STBs as well. 

     

    “We aim to have a million boxes seeded by the end of 2015. We have around 10 analogue headends and one digital headend,” he says. According to sources, the MSO had spent Rs 3 crore for installing the digital headend.

     

    Out of 6 lakh connections, more than 70,000 cable homes have been converted into digital mainly in Guwahati, even before the digitisation process has started in the state.

     

    The seven sisters come under phase III and IV of digitisation. “Right now the process has not started in the true sense but the industry is getting ready,” adds Narain. He expects the current deadline of December 2014 to be extended as well. This could be because the government is addressing the loopholes witnessed in phases I and II.

     

    “Fibre network connectivity work is still progressing in states like Tripura, Nagaland, Meghalaya to name a few,” he adds.

     

    The north east terrain is such that cable TV cannot reach everywhere. Therefore DTH made a sizeable penetration in this market. “We will convert the DTH subscribers into cable by giving a lucrative option to consumers,” he says adding that the MSO may charge Rs 250 plus tax for offering 350 channels.

     

    As far as the funding for the undertaking is concerned, Cisco’s capital arm is one of the options amongst others such as private equity or JVs with other parties.