Tag: broadband

  • Nokia partners GTPL for broadband deal

    Nokia partners GTPL for broadband deal

    MUMBAI: Nokia confirmed its partnership with GTPL, a cable TV and broadband service provider company. In order to upgrade its networks, GTPL will use and install Nokia’s fixed access and core technology.

    GTPL’s ethernet-based access network will be replaced by the upgraded fibre cables capable of supporting ultra broadband speed. The broadband provider will also utilise Nokia Broadband Network Gateway (BNG) solutions for reliable ultra broadband access in residential areas. This will promote a faster internet experience for the subscribers.

    As per the agreement, Nokia’s GPON technology will be used by GTPL, also along with that, the currently deployed Nokia BNG’s. This move will boost existing service speeds and drop-ship new ultra-broadband services including high speed internet, linear TV and video-on-demand (VoD) services.

    As per ET Telecom, Nokia’s GPON equipment will be deployed across various cities in the Gujarat state by the end of this year.

    Speaking to ET Telecom, managing director at GTPL Hathway, Anirudh Jadeja said, “India is recording a massive increase in broadband consumption, and as people begin using digital platforms to complete a number of day-to-day tasks they will demand an even better broadband network. We believe our partnership with Nokia is crucial to our growth. The modernised network will allow us to provide a world-class broadband experience to our subscribers. It is also in keeping with the Indian government’s drive to promote the use of the digital platform as part of its Digital India vision”.

    Ahead of the partnership, head of emerging business at Nokia, Vinish Bawa looked excited as he stated, “We are delighted to work with GTPL to transform its networks to deliver an improved network experience for its subscribers. This deployment will enable GTPL to meet fast-growing demand for a better and faster network experience. Our technology solutions will allow GTPL to differentiate itself from other market players to attract more customers”.

  • ACT Fibernet seeks funding; discloses financials

    ACT Fibernet seeks funding; discloses financials

    MUMBAI: In its prospectus with SEBI, ACT Fibernet submitted the financial details and is looking for fund-raising to expand the business across India. ACT Fibernet reported revenue of Rs 1,217 crore and EBITDA of Rs 211.67 crore in fiscal 2017.

    In the six months ended 30 September 2017, the revenue was Rs 684 crore and EBITDA was Rs 286 crore. In fiscal 2016, ACT Fibernet posted revenue of Rs 874 crore and EBITDA of Rs 323 crore. Moreover, in fiscal 2015, it registered the revenue of Rs 618 crore and EBITDA of Rs 468 crore.

    According to the reports, ACT Fibernet had approximately 1.28 million wired broadband internet customers and 0.71 million cable TV customers as at 31 December 2017. It reported a monthly ARPU of Rs 813 in fiscal 2017, Rs 756 in fiscal 2016 and Rs 684 in fiscal 2015 from retail wired broadband internet business.

    The wired broadband internet market is expected to grow from 18.1 million subscribers as at 31 December 2016 to 24 million by 31 December 2021, according to a study by MPA.

    Revenue from wired broadband internet service business accounted for 82.77 per cent, 90.31 per cent, 91.61 per cent and 91.38 per cent of total income for fiscals 2015, 2016 and 2017 and the six months ended 30 September 2017 respectively.

    Revenue from cable TV service business accounted for 11.86 per cent, 6.13 per cent, 4.61 per cent and 5.21 per cent of total income from operations for fiscals 2015, 2016 and 2017 and the six months ended 30 September 2017 respectively.

    Standing at the third largest position across the wired broadband internet service provider in India, the company bags the market share of 6.9 per cent as at 30 September 2017 according to MPA. Its fibre broadband network covers 5.4 million plus residential homes in the markets in which it operated as at 30 September 2017, according to MPA.

    ACT Fibernet said it invested significantly to develop fibre broadband network. The majority of the fibre network utilises an advanced Metro Ethernet Active FTTX technology. It also utilises GPON technology in certain parts of the network.

  • New telecom policy may go to Cabinet in 2 weeks: DoT’s Sundararajan

    New telecom policy may go to Cabinet in 2 weeks: DoT’s Sundararajan

    NEW DELHI: The new telecom policy — branded as the National Digital Communications Policy (http://www.indiantelevision.com/iworld/telecom/comment-indias-ntp-2018-gets-digital-makeover-but-needs-complimentary-policies-180508) — is expected to be placed before the Indian Cabinet for approval in two weeks, a top official said on Tuesday.
    “It is likely to be placed in two weeks,” Telecom secretary Aruna Sundararajan was quoted by news agency Press Trust of India (PTI) on the sidelines of an event.
    The government has recently issued the National Digital Communications Policy (NDCP), which once approved will set the road map for attracting investment of around $ 100 million in the sector and create four million new job opportunities over a period of time.
    Promising rationalisation of levies such as spectrum charges to rejuvenate debt-ridden telecom sector, the proposed new telecom policy seeks to provide broadband access to all with 50 mbps speed and 5G services too amongst a host of other benefits by 2022.
    It proposes to adopt “Optimal Pricing of Spectrum” to ensure sustainable and affordable access to digital communications. High spectrum price and related charges have been the main concern of telecom services segment, which is reeling under a debt of around Rs 7.8 lakh crore.
    Sundararajan said that the Department of Telecom has completed inter-ministerial consultation on the new policy and is now working on some of the processes required to be fulfilled before the draft is submitted to cabinet for the approval. Earlier, the Telecom Commission(http://www.indiantelevision.com/iworld/telecom/ndcp-2018-net-neutrality-rules-cleared-by-telecom-commission-180712) had cleared draft policies related to the NDCP and net neutrality

  • India to be APAC’s fourth largest online video subscription opportunity by 2023: MPA

    India to be APAC’s fourth largest online video subscription opportunity by 2023: MPA

    MUMBAI: The latest report by Media Partners Asia (MPA) predicts that by 2023, India will be Asia Pacific’s fourth-largest online video subscription opportunity after China, Australia and Japan.

    The Asia Pacific Online Video & Broadband Distribution report goes on to say that Asia Pacific’s online video revenue, comprising net ad spend and subscription fees, is expected to grow at 18 per cent CAGR, up from $21 billion in 2018 to $48 billion by 2023.

    The growth of online video subscription has been impressive in China, with fees rising from less than $850 million in 2015 to a projected $5 billion in 2018. The growth of online video subscription fees has also been strong and increasingly scalable in Australia and Japan, while meaningful opportunities are opening up in India, driven by the growth of payment infrastructure as well as investment in sports rights, local movies and series. Online video sub fees in Southeast Asia (including Hong Kong) are relatively low, at a projected $267 million in 2018. This could grow to $724 mil by 2023, driven by greater momentum in Hong Kong, Indonesia and the Philippines.

    China will account for the lion’s share of industry value, with more than 60 per cent of Asia Pacific online video revenue and more than 75 per cent of direct-to-consumer SVOD subs by 2023. After China, the largest markets by revenue in 2023 will be Japan, Australia, India, Korea and Taiwan. 

    MPA executive director Vivek Couto said,“Online video monetisation is starting to scale, supported by rising investment in premium entertainment and sports as well as the growth of broadband and digital payments. Strong digital ecosystems are emerging, especially in China while telcos are also becoming important aggregators of video services in markets such as Australia, India and Southeast Asia. Advertising is a major revenue stream for online video across the region, while subscription is also key, especially in Australia, China and Japan, and growing from a low base in India, Southeast Asia, Korea and Taiwan. Different payment models are emerging across China, India and Southeast Asia incorporating, including TVOD and shorter time commitments, freemium tiers, bundles and loyalty programs tied to a broader mix of digital services.”

    Net online video ad spend in Asia Pacific will grow from $13 billion in 2018 to $30 billion by 2023. Ex-China, this opportunity equates to more than $11 billion by 2023, versus $5 billion in 2018. YouTube and to some extent Facebook will remain dominant, with 73 per cent of online video ad spend ex-China by 2023, versus 78 per cent in 2018. The biggest online video ad markets after China by 2023 will be Japan, Australia, India and Korea. Local players will gain share with India leading the way, although Southeast Asia will lag behind.

    Online video content costs across Asia Pacific grew by 27 per cent in 2017 to reach $13 billion, with China contributing 85 per cent. Asia Pacific online video content costs will grow from $16.6 billion in 2018 to $31.5 billion by 2023, a 14 per cent CAGR, according to MPA. Ex-China, OTT video content costs will grow from $2.7 billion to $5.9 billion over 2018-23, a 16.5 per cent CAGR, with Australia, India and Japan driving momentum, followed by Korea.

    Advances in broadband will provide a significant boost to online video consumption, reach and monetisation. Mobile broadband will continue to grow, including the first flowering of 5G in North Asia and Australia post-2020, alongside a slow but steady transition to next-generation fixed broadband. Mobile broadband penetration in Asia Pacific ex-China will reach 80 per cent per capita by 2023 versus 57 per cent in 2018, with some of the biggest growth coming from India, Indonesia and Thailand. With China included, average mobile broadband penetration in Asia Pacific will grow from 74 per cent to 94 per cent per capita over the 2018-23 period. Average fixed broadband penetration in Asia Pacific will grow steadily from 50 per cent to 54 per cent of households over 2018-23, with the focus increasingly on upgrading networks using fibre and next-generation cable technologies.

    High level of online piracy leads the list of barriers to the growth. Apart from China, many local players are also struggling to scale in fragmented marketplaces. The top three SVOD players in a market typically have 50 per cent or more of online video subscription revenues, according to MPA analysis, leaving scope for future consolidation.

    Couto added: “We are in the early innings of an industry evolution which will require high levels of investment and strong balance sheets. For standalone players, there is no clear path to significant free cash generation in any market over the medium term, while integrated digital giants and large-scale TV players are subsidising losses for their online video services, although operational breakeven is likely in the near-to-medium term for local platforms in Australia, China, India and Japan.”

  • Broadband on cable fibre declining?

    Broadband on cable fibre declining?

    BENGALURU: Is broadband on cable fibre on the decline in India? Results over the past few quarters of some of the multisystem operators or MSOs seem to indicate just that. Mukesh Dhirubhai Ambani’s largest start up in the world Reliance Jio Infocom Ltd (JIO) is the one of the biggest upheavals that has happened in the Indian telecommunications ecosystem ever. With its operations of scale and low cost services, there just does not seem to be a better bet for the prudent Indian internet user. What is missing is quality of services, but, then that is the case also with all the major mobile  and internet service providers in India, be it an Airtel or a Jio or a Vodafone or the public sector BSNL and MTNL.

    Wired broadband internet subscriber numbers have been declining, while wireless broadband internet subscribers have been growing according to Telecom Regulatory Authority of India (Trai) data. Among the top five wired internet services providers in India, BSNL and MTNL have been slowly and steadily losing subscribers. However, the overall loss of wired broadband subscribers is higher than the numbers bled by these two public sector behemoths. Subscription numbers of the other three players in Trai’s top five wired broadband internet service providers list such as Bharti Airtel, ACT and Hathway have been either increasing slowly or have been steady month-on-month in calendar year 2018 according to Trai data. MSOs and LCOs are among the other wired internet service providers in the country. Financial numbers released by major and other MSO and wired internet service providers such as Siti Networks, Den or Ortel indicate lower revenues from their respective broadband segments, implying either loss of subscribers or lower ARPU due to competitive pricing or both.

    Is the laying of fibre cable or FTTH (fibre to the home) that Jio has planned to provide broadband internet services to the doorstep out the right way forward? Anything that Reliance does will be on a huge scale. However, why not pause and limit the size of Jio’s FTTH plans and then leapfrog and start offering 5G services? 5G is a wireless service to the user’s door and needs no messy holes or wires for access into the user’s home. All that is needed by the user is a modem that works like a wireless modem.

    Affordable 5G services could effectively change how a user receives internet and related services. It’s not going to be easy and will require a huge amount of capital for the infrastructure for line of sight transmission in crowded cities, etc. But, already players such as AT&T and Verizon in the US have planned a slow but steady rollout of 5G services in the US. One the US majors will roll 5G services first in four cities by the end of 2018 and then across the US over time. Players in the US are planning to bundle 5G services with offers such as free Youtube.com TV and Apple TV 4K for a limited period of time. Jio has the resources, the wherewithal to do so.

    Of course 5G could be even more bad news for the current Indian cable TV ecosystem’s wired broadband offerings, maybe even the current Indian media and entertainment ecosystem, but could be a huge beneficial and cost effective game changer for the user. Using the cliché, change is the only constant, well maybe the entire ecosystem that brings entertainment to the common Indian does need a huge shakeup?

  • GTPL Hathway revenue up for Q1

    GTPL Hathway revenue up for Q1

    BENGALURU: Indian multi-system operator and internet service provider GTPL Hathway Limited (GTPL) reported 15.7 per cent increase in total income for the quarter ended 30 June 2018 (Q1 2019, quarter or period under review) as compared to the corresponding year-ago quarter  (y-o-y) Q1 2018. GTPL’s total income in Q1 2019 was Rs 303.55 crore, for the corresponding year ago quarter it was Rs 262.41 crore.

    GTPL’s consolidated profit after tax (PAT) was almost flat (declined 0.9 per cent) y-o-y in Q1 2019 to Rs 12.57 crore from Rs 12.69 crore in Q1 2018. Consolidated total comprehensive income for the period reduced 1.3 per cent y-o-y to Rs 12.50 crore from Rs 12.66 crore. Consolidated operating profit (EBITDA) excluding other income increased 18.6 per cent in Q1 2019 to Rs 77.49 crore (26.1 per cent of operating or op revenue) from Rs 65.35 crore (25.4 per cent of op revenue) in the previous fiscal.

    GTPL has two segments – cable TV business and internet service. Cable TV business operating result increased 9.9 per cent y-o-y to Rs 10.17 crore in Q1 2019 from Rs 9.26 crore in the corresponding quarter of the previous year. Operating revenue of GTPL’s cable TV business increased 17.4 per cent y-o-y to Rs 260.93 crore from Rs 222.18 crore.

    GTPL’s internet service operating revenue in Q1 2019 increased 2.6 per cent y-o-y to Rs 35.98 crore from Rs 35.07 crore. Internet service segment’s operating results for Q1 2019 declined 30.2 per cent y-o-y to Rs 2.40 crore from Rs 3.44 crore in the corresponding quarter of the previous year.

    Let us look at the other numbers reported by GTPL Hathway

    Consolidated total expenditure increased 17.2 per cent y-o-y during the quarter under review to Rs 283.11 crore from Rs 241.49 crore in Q1 2018. Pay channel cost in Q1 2019 increased 17.8 per cent y-o-yto Rs 126.44 crore from Rs 107.37 crore in the corresponding quarter of the previous year. Other operational costs reduced 15.4 per cent y-o-y in Q1 2019 to Rs 21.48 crore from Rs 25.40 crore in Q1 2018.

    Employee benefits expense in Q1 2019 increased 18.6 per cent y-o-y to Rs 35.32 crore from Rs 29.78 crore in the corresponding quarter of the previous fiscal. Finance costs increased 57.2 per cent y-o-y during the quarter under review to Rs 16.12 crore from Rs 10.26 crore. Other expenses in the period increased 23.3 per cent y-o-y to Rs 36.19 per cent in Q1 2019 from Rs 29.36 crore in the corresponding quarter of the previous year.

  • TRAI chief defends broadcast tariff order, data protection suggestions

    TRAI chief defends broadcast tariff order, data protection suggestions

    MUMBAI: The much touted and highly anticipated live session of TRAI Chairman RS Sharma on Twitter yesterday didn’t throw up surprises. The moderator relayed more queries on the telecom sector and very few on the broadcast segment and in the few that were answered, the chief regulator defended his organisation’s stand ably.

    One such query relating to the broadcast sector revolved around whether India was a highly regulated market and then sought a status report on TRAI’s latest directives, including those relating to broadcast and cable sector tariff, inter-connect agreement amongst stakeholders and quality of service.

    Denying that India was a highly regulated market — “no case of over-regulation…,” he said — Sharma pointed out that though the present set of regulations, implemented after almost 18 months, had “seen a lot of litigation”, they were “wonderful” and aimed at ensuring “transparency” in the whole eco-system.

    “The customers [of TV services] would benefit,” Sharma emphasised.

    For the uninitiated, TRAI’s tariff guidelines, originally issued in 2016, remained mired in legal tangles till earlier this year when Madras High Court upheld the regulator’s contentions. Subsequently, on 3 July 2018 TRAI issued a statement saying as all judicial compliances were completed, its tariff order came into existence with immediate effect. However, the Supreme Court is set to hear a case filed by original petitioners Star India and Vijay TV against the high court order late August. Some confusion still prevails regarding a cap of 15 per cent on prices of TV channels offered by broadcasters as the Chennai court had frowned down on this stipulation.

    Coming back to the TRAI on Twitter session, asked about indifferent quality of service relating to mobile broadband, Sharma batted for use of satellites to also deliver broadband services. In fact, in its several recommendations, the regulatory body has pushed for an open sky policy signifying usage of Indian and foreign satellites to deliver a host of services, including television and broadband.

    According to the chief regulator, all options of delivering broadband services should be explored, including satellites, cable TV and DTH platforms. Such an approach could also result in bringing down costs, Sharma said in reply to a question on indifferent broadband services in hilly and logistics-challenged areas like the north-eastern part of India.

    Queried on the logic behind issuing recommendations on data vis-à-vis its ownership and privacy ahead of a government-mandated panel appointed to look into these issues, Sharma explained it as a necessity as the ecosystem was changing. Currently, India is consuming more data than the US and China put together, he pointed out, adding, therefore, the issue of data security, privacy and ownership had become extremely important.

    “If data is flowing, new players have emerged [and] they also have to accept the responsibility and… take care of consumer data. Hence, after the consultation process running for about a year, we came up with this recommendation saying similar kind of rules must apply to the telecom, browser, devices…” Sharma clarified. However, the Justice BN Srikrishna committee, asked by the government to look into issues relating to data, has expressed its displeasure on TRAI recommendations ahead of its own conclusions.

    “Justice Srikrishna committee is drafting an…overall data protection law and we have said while there may be general questions relating to data protection, it is important that till that time, apply more or less the same rules of data protection as applicable for telecom service providers,” Sharma defended his organisation’s stand.

    Asked about the Apple controversy that proposed strict actions against the US giant as it was not complying with TRAI request on consumer data, Sharma clarified that it had nothing to do with any particular company and termed the situation as “misconstrued” — “It is totally related to the issue of unsolicited communication,” he added.

    Interestingly, through its various apps, aimed at consumer assistance (like checking the broadband speed being provided by the telecom service provider on mobile handsets of consumers), TRAI itself collects huge amount of data, which critics have said could be exploited if leaked.

    Asked about the data that the regulator mines and ways its protection is ensured, Sharma said that the organisation has “adopted privacy” as a default mechanism, which ensures data protection of consumers.

    The 1978 batch Indian Administrative Service officer Sharma was appointed as TRAI chairman three years ago. His tenure is scheduled to end in August 2018 and the government, according to sources, has received as many as 45 applications for the post that was advertised on the website of Department of Telecoms.

  • Now, Reliance Jio coud set off broadband turf war with Airtel

    Now, Reliance Jio coud set off broadband turf war with Airtel

    MUMBAI: The entry of Reliance Jio in the telecom market disrupted mobile data pricing. Now, as the Mukesh Ambani-owned venture is set to enter the broadband service too, its competitor Bharti Airtel is also expected to bombard consumers with great offers. After telecom, the two companies are now prepping themselves for a war in the home broadband segment.

    According to media reports, the broadband service from Jio will offer data speeds of 100 Mbps, with massive data limit, starting at Rs 1,000-1,500 a month. Moreover, it’s expected to offer a combination of fast connectivity and unlimited video and voice calls through the Voice Over Internet Protocol (Vo-IP).

    To lure more customers, Jio may offer the initial service free of cost. Jio has already rolled out pilot services in few cities. Economic Times reported a person familiar with the development as stating that Jio might reveal the timing of commercial launch on 5 July, the day of Reliance Industry Ltd’s general meeting.

    Airtel is also gearing up efforts to revamp its existing wired broadband connection. The telco has set aside Rs 24,000 crore for the financial year 2019. From current 89 cities it wants to expand its service to 100 key cities targeting big data consumption zones.

    “We are closely watching the wired home broadband space and will combine innovation with aggressive investments and do whatever it takes to stay competitive on services and tariffs and grow our home customer base,” a senior Bharti Airtel executive said as quoted by ET.

    The entry of Jio may again disrupt home broadband pricing forcing its rivals, especially Airtel, to decrease rates, repeating the 2016 Jio 4G phenomenon.

    Also Read:

    Jio led broadband while Hathway led wired broadband subs growth in 2018

    Reliance Jio ready to disrupt wired broadband: Matthew Oomen

  • Telco apps emerging as one-stop destinations in India: Report

    Telco apps emerging as one-stop destinations in India: Report

    MUMBAI: The newest trend in the world digital content consumption, is the emergence of telco apps as one stop shops for users. According to a Bank of America Merrill Lynch (BofAML) report quoted by Bloomberg Quint, Indians have shown a tendency to use apps like Jio TV, Jio Cinema, Airtel Wynk instead of downloading individual over-the-top (OTT) streaming apps.

    Among all the offerings from the data disruptor Jio, the live television streaming app Jio TV was the most used. Even Airtel’s Airtel TV app has clocked over 10 million downloads since its launch. Other than Jio TV, Jio Music and Jio Cinema also managed to capture the imagination of Indian users.

    Among the BofAML 1,000 consumers surveyed by BofAML, Jio recorded the highest number of users. The objective of the study was to document data consumption patterns. It found that 76 per cent users use mobile data to watch online videos, while 68 per cent download and save them

    The online content viewing numbers have increased exponentially, with 30 per cent of users breaching their daily limit of 1/1.5 GB almost regularly.

    Among the video streaming platforms, YouTube continues to hold its sway with consumers, with 58 per cent of them using the platform. 38 per cent viewed content on Hotstar, with ZEE5 and Eros being used by 2 per cent and 1per cent respectively.

    “We consider this as a new emerging theme in India and expect content companies to be beneficiaries of the telco price wars. However, given the nascent stage of the market, we don’t see a clear “winner” currently in the OTT space,” read the BofAML report.

    The findings of the study also indicated that cord-cutting may not disrupt the Indian television industry anytime soon, as monthly cable bills (200-400) continue to be significantly lower than what decent broadband connections cost.

    Also read: Reliance Jio to soon launch 5G services: all you need to know

    Amazon India’s new monthly subscription plan

     

  • DEN Network fixed-line b’band biz plan hinges on partnerships & leveraging present infra

    DEN Network fixed-line b’band biz plan hinges on partnerships & leveraging present infra

    MUMBAI: With telcos handing out data at cheap rates in various package sizes under innovative schemes, mobile data consumption has increased rapidly in India in the last few years, while the growth of fixed-line broadband (FLBB) users has been tepid, if not completely static. MSO DEN Networks now wants to tap the hitherto unexplored opportunities of FLBB as a business proposition. So, what’s the plan?

    Not only DEN wants to use its own and partners’ customer bases in 100 small cities of India, but is also, probably, eyeing the huge FLBB market that will open up as the Indian government ramps up its BharatNet project to provide Internet and broadband services to approximately 250,000 gram panchayats or local village administrations through state-run telcos and third-party service providers, including cable operators. 

    The reason for hi-speed broadband in 100 cities in 10 Indian states is to try overcome the low returns in big cities and metros. “We have also seen a lot of stress in the fixed line broadband ARPUs of all the major metros, be it Mumbai, Delhi, Bangalore [and] Kolkata,” DEN Networks CEO SN Sharma said during a recent analyst call, going onto add that the ARPUS were low in the “top 10 towns of the country”.

    public://graph_1.jpg

    In April, DEN Broadband Pvt. Ltd, a subsidiary of DEN Networks, had announced expansion of its hi-speed internet services to 100 cities across India.  After completion, DEN Broadband aims to enable 1.1 crore (11 million) Indian households with high-speed broadband services by 2020 with 20 MB speeds on an average under different sets of packaging and schemes — in contrast to average lower offerings from various telcos.

    And, to back its claims, DEN Networks quotes data from international and domestic sources. In a presentation made to investors, the Sameer Manchanda-founded company justified its focus on FLBB by saying that if regulator TRAI’s December 2017 data was to be believed, there were 425 million wireless Internet subscribers, while there were only 18 million FLBB subs. Over the years, Indian FLBB growth has remained static compared to its APAC peers like Australia, China, Vietnam and Thailand.

    So, how is DEN going to go about its FLBB plans in 100 cities? The company plans to leverage its existing cable universe and tie-ups with last mile operators by going the franchisee model, leveraging present infrastructure (80 per cent already fibre-enabled), and lower capex and operational costs. Affordable technology like Metro Ethernet and GPON, coupled with standardized technical solutions, customer support from DEN and a pre-paid collect model on B2C basis, according to the company, would make good business sense.

    “We have a plan to enable 15 towns in the first quarter. Overall, 100 towns have to be enabled, and you will be surprised that LCOs themselves are approaching us,” Sharma informed an analyst, adding that it was not just a one-way traffic as company execs too were tapping LCOs informing them of the benefits as the infrastructure is already in place and the project could have additional revenue spin-offs for the LCOs. DEN has earmarked Rs. 100 crore (Rs.1 billion) as capex for the FLBB project over the three-year period.

    What is fueling DEN’s aspirations? Quoting Singapore-based Media Partners Asia figures, the company presentation told investors that there had been 

    15X rise year-on-year in Internet data traffic in 2017 with video content contributing 65 per cent of total mobile data traffic apart from the fact that India’s FLBB penetration was expected to increase to 10.3 per cent from the present single digit share by year 2022. Moreover, as content and applications keep getting heavier and denser in size, FLBB high speed broadband solutions could be ideal for offices and homes.

    “Our fiber is just 100 meters away from each of the subscriber that is being served by us,” Sharma explained to analysts, adding with broadband ARPUs low in metros and bigger cities it was decided to target the rest of the country that is not only a “virgin area” but has “equally good” demand.

    Asked about Reliance Jio’s ambitious plans to rollout broadband services in the country, which can disrupt this segment too, Sharma refused to comment, saying, “I am nobody to comment on others business.” 

    Also Read :

    DEN expands broadband services; plans Rs 100 cr capex

    Aim to take phase 3 ARPU to phase 1 value: Den Networks’ SN Sharma

    DEN readies Android-based STB for Feb launch

    TDSAT rules in favor of DEN Networks, directs ZEE entertainment to provide channels on RIO basis