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  • 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.

  • AIDCF asks b’casters to create level playing field for OTT & cable TV

    AIDCF asks b’casters to create level playing field for OTT & cable TV

    MUMBAI: The All India Digital Cable Federation (AIDCF) is on a roll. The multi system operator (MSO) association, which first submitted its recommendations to the Information & Broadcasting (I&B) Ministry and then to the GST Committee, has now written to broadcasters with Over the Top (OTT) platforms.

     

    The Association has written a letter to Star India, Multi Screen Media and IndiaCast Media Distribution. In the letter, AIDCF has stressed on how the broadcaster is giving content free of cost to its OTT platforms, while charging MSOs for the same content.

     

    Giving an example of Star India’s OTT platform hotstar, a source close to the development tells Indiantelevision.com, “Star India, on one hand offers simulcast or immediate transmission of fresh popular content completely free of cost to its OTT subscribers on hotstar and on the flip-side, it charges the MSOs huge sum for the same set of content.”

     

    AIDCF’s letter to broadcasters, a copy of which is with this website, reads:

     

    1) The cable industry is contributing huge subscription revenue to 

    broadcasters for the same set of content and programme.

     

    2) It contributes to a large viewership for the channels the network has.

     

    3) Also helps the broadcaster in gaining higher TRPs, which in turn leads to a better ad rate for the portfolio of channels thus increasing the advertisement revenue.

     

    The letter points out that this scenario of offering simulcast/immediate transmission of fresh content completely free of cost to OTT subscribers is not favourable for the Cable TV industry and its relationship with broadcasters, considering the growth in the subscriber base for the broadcasters’ OTT application.

     

    According to AIDCF, this is a threat to the pay TV cable business model, which defeats the purpose of paying huge license fees to broadcasters. “Some of our subscribers have started complaining saying, ‘Why should we pay you for the content, which is available free of cost via say hotstar or Sony Liv,’” informs the source.

     

    Giving free of cost content to OTT platforms is affecting the average revenue per user (ARPU) of the cable TV industry, subsequently hampering the growth of business at large.

     

    AIDCF in its letter has asked broadcasters to create a level playing field amongst respective distribution platforms. “We have requested the broadcaster to make content available on their OTT platform a paid service with a subscription fees. Alternatively, the same content should also be made available free of cost to other distribution platform,” the source reaffirms.

  • Govt earns Rs 7.41 crore as processing fee from applicant MSOs

    Govt earns Rs 7.41 crore as processing fee from applicant MSOs

    NEW DELHI: The Government has collected a sum of Rs 7.41 crore during the last three years until 27 January, 2015 from Multi System Operators (MSOs) for providing digital addressable Cable TV service in the country.

     

    The Ministry of Information and Broadcasting (MIB) collects Rs 1 lakh from each applicant as processing fee at the time of submission of application for registration of MSOs.

     

    It received Rs 3 lakh in 2011-12, Rs  1.80 crore in 2012-13; Rs 79 lakh in 2013-14; and Rs 79 lakh in 2015 (up to 27 January).

     

    Ministry sources told Indiantelevision.com that some of the States have levied entertainment tax on cable services, which is collected directly by the concerned State Governments. In addition, cable operators are also required to pay service tax and any other applicable taxes to the Central Government.

     

    However, the MIB does not maintain any information relating to collection of these taxes.

  • Ortel reports respectable maiden numbers for FY-2015 & Q4-2015

    Ortel reports respectable maiden numbers for FY-2015 & Q4-2015

    BENGALURU: At the time of its IPO earlier in March 2015, Ortel Communications had to withdraw a part of the promoter’s quota to prevent undersubscription. In its maiden financial numbers, Ortel reported fairly respectable numbers for FY-2015 as well as Q4-2015 and hence justified the faith that investors put in it. The company was listed on 19 March, 2015.

     

    For FY-2015, Ortel reported total income from operations (TIO) of Rs 154.79 crore for FY-2015, 20.5 per cent more than the Rs 128.50 crore in the preceding financial year. The company reported a profit after tax (PAT) of Rs 5.65 crore in FY-2015 as compared to a loss of Rs 11.28 crore in FY-2014.

     

    Notes: 100,00,000 = 100 lakh = 10 million = 1 crore

    The numbers mentioned in this report are standalone.

     

    Cable subscription fees in FY-2015 grew four per cent to Rs 79 crore from Rs 75.7 crore in FY-2014, while internet subscription fees grew five per cent to Rs 27 crore from Rs 25.8 crore in FY-2014.

     

    In Q4-2015, the company’s TIO at Rs 44.91 crore was a healthy 34.4 per cent more than the Rs 33.41 crore in the corresponding quarter of last year and 13.9 per cent more than the Rs 39.44 crore in Q3-2015. The company reported a PAT of Rs 5.65 crore in Q4-2015, as compared to a loss of Rs 1.23 crore in Q4-2014 and more than 20 times (20.64 times) the PAT for Q3-2014 which was reported as Rs 0.27 crore.

     

    Revenue generating units (RGU)

     

    Two main segments add to the company’s numbers – Cable TV and Broadband, with a big chunk of numbers also being added by unallocated segments.

     

    Ortel reported total RGUs of 530,111 in FY-2015 as compared to 515,835 in FY-2014 and 486,255 in FY-2013. Of these, total cable RGUs in FY-2015 were 471,592, in FY-2014 they were 461,408, and in FY-2013 they were 435,628.

     

    Correspondingly, Broadband RGUs were 58,519 in FY-2015, 54,427 in FY-2014 and 50,627 in FY-2013.

     

     

    Cable TV segment

     

    In FY-2015, Cable TV segment reported 11.5 per cent growth in revenue from Rs 97.35 crores in the previous year to Rs 108.52 crore in FY-2015. Cable TV segment reported 12.1 per cent growth in operating profit to Rs 49.32 crore in FY-2015 from Rs 43.98 crore in FY-2014.

     

    Within this segment, besides subscription fees, cable connection fees grew 161 per cent to Rs 3.1 crore in FY-2015 from Rs 1.2 crore in FY-2014. Channel carriage fees grew 29 per cent in FY-2015 to Rs 26.4 crore from Rs 20.5 crore from FY-2014.

     

    Cable TV reported 9.7 per cent y-o-y growth in revenue to Rs 27.87 crore from Rs 25.41 crore in Q4-2014 and 2.2 per cent growth from Rs 27.27 crore in Q3-2015. The segment reported more than triple the operating profits in Q4-2015 at Rs 11.21 crore as compared to the Rs 3.61 crore in the corresponding quarter of last year and 8.3 per cent more than the Rs 10.36 crore in Q3-2015.

     

    Broadband segment

     

    Broadband segment revenue grew 5.2 per cent during the corresponding period to Rs 28.89 crore in FY-2015 from Rs 27.47 crore in FY-2014. Operating profit from Broadband segment grew a healthy 43.3 per cent to Rs 20.89 crore from Rs 14.57 crore in FY-2014. Within this segment, internet connection fees grew 12 per cent in the current year to Rs 1.9 crore from Rs 1.7 crore in FY-2014.

     

    Broadband segment reported revenue of Rs 7.44 crore in Q4-2015, which was 5.9 per cent more than the Rs 7.02 crore in Q4-2014 and 4.5 per cent more than the Rs 7.12 crore in Q3-2015. The segment reported almost eight times (7.61 times) operating result of Rs 7.95 crore in Q4-2015 as compared to the Rs 1.04 crore in Q4-2014 and 68.9 per cent more than the Rs4.71 crore in the immediate trailing quarter.

     

    Unallocated

     

    Revenue from unallocated segment grew almost four fold (3.73 times) to Rs 17.38 crore in the current year from Rs 3.67 crore in FY-2014. Operating profit credited to unallocated segment grew 3.7 per cent from Rs 3.07 crore in FY-2014 to Rs 3.19 crore in FY-2015.

     

    In Q4-2015, revenue from unallocated revenue grew almost tenfold (9.79 times) to Rs 9.61 crore from Rs 0.98 crore in Q4-2014 and 90.1 per cent more than the Rs 5.06 crore in Q3-2015. Unallocated operating profit grew 4.2 per cent in Q5-2015 to Rs 0.81 crore from Rs 0.78 crore in Q4-2014 and grew 2.8 per cent from Rs 0.79 crore in Q3-2015.

     

    Average revenue per user (ARPU)

     

    The company has reported a slight reduction in average revenue per user (ARPU) in all cases when compared to the previous year, except for digital cable. Analog TV ARPU in FY-2014 was 145 per month as compared to Rs 147 in FY-2014 and Rs 136 in FY-2013.

     

    Digital TV ARPU in FY-2015 was Rs 186 as compared to Rs 177 in FY-2014 and Rs 157 in FY-2013.

     

    Retail broadband ARPU stood at Rs 356 in FY-2015 as compared to Rs 373 in both FY-2014 and FY-2013. Corporate broadband ARPU had the highest fall. In FY-2015, corporate broadband ARPU was Rs 2851 as compared to Rs 3487 in FY-2014 and Rs 3998 in FY-2013. Data usage per month has gone up relatively, hence indicating lowering of charges for data – in FY-2015, it was 3143 MB, in FY-2014 it was 3126 MB and in FY-2013 it was 2666 MB.

     

    Ortel President and CEO Bibhu Prasad Rath said, “I am pleased to report that the company delivered healthy performance during the quarter and full year on the back of growth in Revenue Generating Units (RGUs) in Cable and Broadband businesses and robust contribution from Infrastructure Leasing segment. Our EBITDA margins stood strong at 37 per cent in FY-2015 as compared to 31 per cent in FY-2014. We anticipate further improvement in margins going forward as a result of deeper penetration in the Cable business along with our continued focus on the high-margin Broadband segment. Ortel Communications’ Direct-to-Consumer offering with full control over the ‘last mile’ network has enabled us to emerge as a dominant regional player in the cable TV and broadband business. With increasing penetration in our core and emerging markets along with the inorganic LCO (Local Cable Operator) buy out strategy, we believe we are well-positioned to achieve our immediate target of ~1 million RGUs by the end of FY-2017. I am also proud to share that we successfully concluded the Initial Public Offering (IPO) of the company by raising Rs 108.6 crore during the quarter. The capital infusion will also enable us to accelerate growth and deliver much stronger financial and operational performance in the coming years.”

     

    Click here to read the investor presentation

  • Subscription is biggest contributor to TV industry revenues: TRAI

    Subscription is biggest contributor to TV industry revenues: TRAI

    MUMBAI: India is one of the most profitable and growing markets when it comes to the television ecosystem. In terms of the broadcasting sector consisting of television and radio, India has the world’s third largest TV market after China and USA.

     

    The annual report of Telecom Regulatory Authority of India (TRAI) for the year 2013-14 has detailed out activities of the Authority, which was presented in the Lok Sabha and the Rajya Sabha in March this year.

     

    According to the annual report, as on March 2014, of the 270 million households, around 169 million have been projected to have television sets catered to by cable TV systems, DTH services, IPTV services and the terrestrial TV network of Doordarshan, put together.

     

    While DTH has 64.5 million registered subscribers (37.2 million active subscribers), IPTV caters to around half a million subscribers. On the other hand, cable TV is estimated to have around 99 million subscribers, whereas the terrestrial TV network of Doordarshan covers about 92 per cent of population of the country through a vast network of terrestrial transmitters. The broadcasting and cable television services sector consists of 55 pay broadcasters, an estimated 60,000 cable operators, 6000 multi system operators (MSOs) (including 144 MSOs registered in DAS), six pay DTH operators, apart from pubcaster – Doordarshan, having free-to-air DTH service.

     

    There were 793 TV channels registered with the Ministry of Information and Broadcasting at the end of financial year 2013-14 out of which 187 were SD pay TV channels and 34 HD Pay TV channels. India’s TV industry grew from Rs 37,010 crore in the year 2012 to Rs 41,720 crore in the year 2013, thereby registering a growth of around 12.7 per cent.

     

    “The subscription revenue accounts for the major share of the overall revenue of the TV industry. The subscription revenue grew from Rs 24,500 crore in the year 2012 to Rs 28,100 crore in the year 2013. The advertisement revenue in the TV sector in India grew up from Rs 12,500 crore in the year 2012 to Rs 13,600 crore in the year 2013,” states the report.

     

    The last decade has significantly changed the dynamics of the Cable and Satellite (C&S) TV market. One of the most significant developments has been the digitisation of the cable TV sector in India. The process of digitisation is underway, in a phased manner. By the March 2014, more than 22 million Set Top Boxes were deployed. While implementation of digitization with addressability is going to be a game changer and would drive the growth of the broadcasting and cable TV services in the country, the DTH sector is registering a growth of around one million subscribers per month. This clearly indicates the growing popularity and acceptability of digital addressable platforms, which have a lot more to offer to all the stakeholders.

     

    Stakeholders in cable and satellite TV service sector

     

    As of March 2014, the total number of TV channels registered with the Ministry of Information and Broadcasting was 793, which include 187 SD pay channels, 34 HD pay channels and four advertisement free pay channels. These channels are owned by around 350 broadcasters (content owners), out of which 55 are the pay TV broadcasters.

     

    Satellite TV channels

     

    The number of satellite channels permitted by MIB has grown from 449 in 2009 to 793 in 2014. The number of pay SD channels has grown from 130 in 2009 to 187 in 2014. The report states that there are total 33 operational HD channels in India till 2013.

     

    DTH Services

     

    Since its inception in 2003, DTH operators have been adding new subscribers at a rate of around one million per month, attaining a registered subscriber base of around 64.82 million subscribers of pay DTH services catered by the six DTH operators by March 2014. This is besides the viewership of the free DTH services of Doordarshan. In March 2009, there were a total of 13.09 million DTH subscribers. This number grew to 21.30 million, 35.56 million, 46.25 million, 56.48 million to 64.82 million subscribers for the years 2010, 2011, 2012, 2013 and 2014 respectively.

     

    Cable TV Services

     

    Cable TV service is the largest television service sector with an estimated subscriber base of around 99 million subscribers. From 52 million subscribers in March 2004 it has risen by 58 million, 66 million, 72.5 million, 80 million, 84 million, 88 million, 92 million, 94 million and 99 million cable TV subscribers from 2005 – 2013 respectively.

     

    Digital addressable Cable TV systems

     

    As per data provided by various MSOs, there were around 85 lakh STBs deployed in the first phase areas of DAS implementation covering four metros namely Delhi, Mumbai, Kolkata and Chennai. In the second phase of DAS implementation, covering 38 cities, approximately 142 lakhs STBs were deployed as on March 2014.

     

    Trends in the tariff in the Broadcasting sector

     

    In order to provide cost effective broadcasting services to the consumer, TRAI has laid down regulatory framework, from time to time, in the form of tariff orders. The tariffs for areas served through non-addressable systems, notified DAS areas, and that for the addressable systems such as DTH, HITS and IPTV etc are governed by respective tariff orders issued by TRAI.

     

    Further, the wholesale pricing has been prescribed with a certain cap, linked to non-addressable platforms tariff ceilings. With these provisions at the wholesale and retail levels, a trend is likely to emerge where the subscription pattern is consumer specific rather than defined by the service providers.

  • “Ad cap should have been restricted to only pay channels”: Yogesh Radhakrishnan

    “Ad cap should have been restricted to only pay channels”: Yogesh Radhakrishnan

    A veteran in the cable TV industry, someone who dabbled in the sector almost three decades back, Yogesh Radhakrishnan, now the MD and CEO of Pioneer Channel Factory, has seen the sector grow from the scratch.

     

    Known for setting up businesses, Radhakrishnan has been the man behind building IndusInd Media and Communication Limited, ETC and ETC Punjabi, rejuvenating Zee Cinema, setting up Zee Middle East, launching the first HD movies channel with Times Television Network – Movies Now and the first HD music channel – MTunes.

     

    Radhakrishnan, who has seen the sector emerge from a mere video-tape business to entering the digital era, talks to Indiantelevision.com’s Seema Singh about the emergence of cable TV in India, the first satellite channel, the emerging music sector and more…

     

    Excerpts:

     

    How did you get into the cable industry? How was the sector then? Why did you move out of it?

     

    In an era when the only form of entertainment was Doordarshan, I was fascinated how it could capture loyal viewership despite old, dusted black and white movies they telecast. I sensed that if people were given the option of better quality of movies on their own TV sets without the hassle of VCR or cassette which was prohibitively expensive there would be a huge demand for it. Thus was born the idea of launching cable TV in India. However re distribution of home video cassettes was illegal so in the year 1988, I pioneered the launch of India’s first copyrighted cable content with my three other partners under the brand name Cable Master. This gave the entire cable TV trade a flip and a legal straw to hold on to as the Government was yet to announce licensing policy for cable TV operators.

    In the next stage of evolution from cable to satellite TV, in the year 1992, we were all geared to launch a channel but lost out the lone transponder on Asiasat 1 to Zee. Those were the days  of quotas and licence raj and we had to partner with an established business house to do business in India.

     

    At that time the Hinduja group was on the verge of launching IndusInd, and so we partnered with them to create a media division and that is how the IndusInd Media Communications was created as a joint venture.

    Incable emerged to be the largest consolidator at that time to bring in the economies of scale in a city like Mumbai which had more than 8000 cable operators. We were the biggest players across most of the states in the country.

    Under IndusInd, we launched India’s first cable channel In Mumbai and a 24 hour movie channel CVO.

    Recognising the strength of ground distribution that our company had, we got many offers for joint ventures from the likes of HBO, Time Warner Cable, TCI etc. A huge multi million dollars offer from Rupert Murdoch didn’t go through due to valuation differences between the Hinduja’s and News Corp.

     

    In 1997, the cable industry got into a turmoil and that was the day I decided to move out of cable.

     

    You went on to launching ETC which you later sold to Zee? What’s the story behind that? How did Movies Now and the distribution venture with BCCL happen?

    In the year 1998, the concept of a 24 hour music channel was a need I saw and that is when I launched ETC, a channel focusing on new releases, as has been established nowadays the exposure of songs on TV plays a big role in the box office success of a film. ETC became the number one Hindi music channel followed by MTV, which was then a Hinglish channel.

     

    ETC was the second listed company after Zee and after the successful launch of the channel, we also pioneered the daily live telecast by securing the rights to the telecast of Gurbani from the Golden temple and thus ETC Punjabi was born which went on to become the No.1 Punjabi channel and continues to be in that position till date in its other avatar PTC Punjabi.

     

    After music and Punjabi channels, we saw the gap for 24 hour Hindi news channel, and that is how ETC News was conceived even before Aaj Tak was launched. But Technology wasn’t in place at that time a camera cost Rs 20 lakh, which today is close to Rs 50,000. Editing equipment, bandwidth for news feeds had to be sourced from DD, all in all, it was an expensive proposition. Hence, a 24 hour news channel had to be put on hold.

     

    Subsequently in 2002 when we got a good offer from Subhash Chandra, we sold ETC Networks to Zee.

     

    And then my association with Zee began, which was also an exciting time. I was a partner with Zee Middle East. Subsequently, I went on to build a strong company in Zee Middle East, which till date is one of the strongest markets for ZEEL.

     

    In 2008, I sold back my equity to Zee and wanted to return back to India where the action really was. Former Times Television Network CEO English channels Ajay Trigunayat, was in Dubai then. We got together with our project to launch India’s first ever English Movie channel in HD.

     

    I had discussions with BCCL MD Vineet Jain and a JV was formed in 2010 to launch four channels and then we further got into launching a distribution venture together called Prime Connect.

     

    Movies Now was one of most successful TV channel launch. It went on to becoming the No. 1 channel in the first week of its launch. Finally, in 2012, I exited the company by selling my equity back to BCCL.
     

     

    Then you moved on to setting up Pioneer Channel Factory? How is MTunes doing?
     

    Following the trend of people wanting to go to multiplexes for the pleasure of enjoying quality production of Hindi cinema and their desire to watch songs in its full glory, I set out to launch MTunes, india’s first Bollywood music channel in HD on the premise of Bollywood music like never seen before. Our songs were carefully selected to ensure they lived up to the channel premise.
     

    Acknowledgement from advertisers came as we got many campaigns exclusively on our channel due to its HD premise. Today, MTunes delivers far greater HD audiences than English movie, entertainment or even sports for that matter.

     

    Our second music channel Music Express resonates well with the industry, we package music with Glamour and Gupshup. Bhakti Sagar is our foray into the spiritual space.

     

    How will digitisation help the music channel industry?

    In analogue what was important was opportunity to see (OTS). In digital, all the channels are blocked in one category. The advantage for us is that we are in HD and so we got the advantage of the four million eyeballs. Our reach is good in HD and we are also available on SD. So for our advertisers it is a win win situation.

     

    How big is the music channel industry currently?

     

    If you take 14 music channels on an average, advertising and promo put together, we would be around Rs 700-Rs 900 crore.

     

    Unless and until you can differentiate yourself, you will not be able to grow majorly. If you see the broadcast business, be it GEC, sports or music, it’s very unfortunate that you are operating in the world’s cheapest advertising market (CPT) and cheapest pay TV market and this growth is slow.

     

    What is your take on music channels turning into youth general entertainment channel? Are you looking at foraying in the youth space?
     

    No way. It is a lovely genre to be in and is growing. Youth programming will drive this market to a large extent.

     

    But I don’t look at great economics that really works in any GEC space, unless and until there is good subscription that one is getting. If you strip off the subscription from all these channels and make them play pure advertising driven GECs I think each of them will lose money.
     

     

    Where do you see the music channel industry heading, considering music is easily available, you think there is still a market for music channels?

    Linear television will always have its market. Music will continue to be in a market where there is a television population which is very huge. There are a lot of people who watch content online and for them we are present online. There is still a large market and it will continue to be that way.

     

    Television is larger than life, especially music channels like MTunes which is very current and new and which plays new music and promos and that is what people look forward to rather than online where you need to make searches for content, while here content just keeps flowing.

     

    Why did music and news channels not follow 10+2 ad cap?
     

     

    US is such a free market and FCC is very strict in terms of regulation, but they do not have an advertising cap. Why should the government intervene on how much of advertising air time one should carry. For a moment Pay channels could be directed but definitely not the FTA channels. And that’s what we argued in the court. In short people will not watch your channel, if you put too much of advertising. So why is it that the government wants to intervene with channels and that too for free to air channels. We are not charging customers any money, its free.

     

    If we put in excess advertising, anyways our ratings will fall as no one would watch the channel, and that would affect our business.

     

    Ad cap should have been restricted to only pay channels, as India is the only country, where the pay channels are getting paid from both subscription and advertising.

    Government needs to create level playing field. Currently as independent networks, it is a difficult situation.

     

    How do you think music channels can start generating more revenue?
     

    Carriage is the biggest drainer. Network channels have the advantage of either not paying carriage or less carriage. Advertising is stuck in the low rate game. Cartelization is a good experiment that we all can get into in order to get decent rates. But, with the plethora of channels available, advertisers have a lot of options.

    It’s not just the music channels, but with new GEC launches, competition is getting tough even in the GEC space.

     

  • Ortel IPO closes; goes through by a whisker

    Ortel IPO closes; goes through by a whisker

    MUMBAI: It was meant to be a test of whether investors have confidence in the media – and more specifically in India’s relatively nascent cable TV sector. And the verdict is that while retail and HNI investors don’t, institutional investors definitely do.

     

    We are referring to the Ortel Communications IPO which closed today. The regional cable TV MSO which approached the market to raise funds for its growth plans, said in a statement, quoting a Kotak Mahindra Capital spokesperson: ““The Ortel IPO has been successfully closed today. Ortel has successfully raised its entire primary capital requirement as stated in the IPO Red Herring Prospectus, along with providing partial exit to New Silk Route (NSR). The QIB segment has been fully subscribed with participation from  Mutual Funds and Insurance companies.The net under subscription in the HNI and Retail segments will reduce the offer for sale component by NSR.”

     

    Simply translated the latter part of that statement means that NSR – its private equity investor – had decided to cut back on the amount of shares it was offering to the public.

     

    At the time the IPO commenced with the price band at Rs 181-200, 12 million shares were on offer for investors. Six million of these were coming from the NSR stable, while Ortel was issuing another six million freshly. With Kotak Mahindra Capital as the issue manager, Ortel managed to rope in  Axis Mutal Fund and ICICI Prudential came in as anchor investors. Both picked up 2.55 million shares (0.9 million to Axis and 16.55 million by ICCI) for Rs 46.2 crore at the lower range of the price band.

     

    That left about 9.45 million shares on offer to qualified instituitional bodies (QIBs) and retail/HNI investors. Bids were received for 7.12 million shares of these by day three of the issue. Thus the public offer was subscribed up to 0.75 time. Overall,  9.68 million shares, including the anchor component,  were lapped up totally or 81 per cent of the issue. The QIBs totally subscribed to what was available for them.

     

    NSR, which was making a secondary sale, decided to lop off the the  shares it was selling 3.67 million, meaning only 61 per cent of its offer was subscribed. It was aiming to raise Rs 108-120 crore through the offfer.

     

    Ortel, on its part, was was looking at raising  Rs 120 crore through the fresh issue.

     

    The Kotak Mahindra spokesperson told indiantelevision.com that the retail investors don’t really understand the potential of cable TV while institutional investors do. “Hence, the QIB portion has been totally subscribed. Ortel has managed to raise all the growth capital it needs for the next two to three years,” he said. “Hence, retail investors who missed this IPO will have to opt for secondary market purchases.”

     

    Estimares are that Ortel would end up raising around Rs 175 crore crore through the IPO. But the final tally totted up to Rs 175 crore-odd, according to Press Trust of India reports.

  • Broadcom India eyes huge growth potential in cable broadband & OTT services

    Broadcom India eyes huge growth potential in cable broadband & OTT services

    KOLKATA: With digital television (DTV) and digitisation, household penetration is increasing in the country. “There exists tremendous opportunities for cable broadband and over-the-top (OTT) services”, opines Broadcom India managing director Rajiv Kapur.
     
     “The over-the-top television market may still be in its infancy in India, but it holds much promise for the future. The demand for OTT is going up. There are progressive operators who have been talking about value-added services. Internet entertainment on TV is on the rise,” says Kapur.
     
    Looking ahead, “one can see existing television sets transformed into smart TVs, enabling internet applications everywhere in the home,” adds Kapur. “We are expanding the options for entertainment in the home.  We are revolutionizing television by providing a full-range of platform solutions for content-sharing and video streaming throughout the home,” he further informs.
     
    Broadcom’s video and broadband solutions enables service providers offer a high-quality, TV-watching experience to its subscribers along with high-speed internet browsing.
     
    He went on to explain Broadcom’s role in OTT and broadband services through Set Top Boxes (STBs). Kapur says that the company constantly educates and trains various operators on the OTT services.
     
    India is currently witnessing the digitisation of analog cable TV signals as mandated by the Ministry of Information and Broadcasting (I&B). With digitisation, analog cable subscribers have been also migrating largely to digital cable, which has gained about 10 million subscribers in 2013, while net DTH subscribers increased by approximately three million.
     
    Post digitisation, while the viewing experience and expectations of the subscribers are soaring, it has also increased the demand for high-speed broadband.
     
    As per the Cisco Visual Networking Index 2014, in India, mobile data traffic will grow by a colossal 24-fold from 2013 to 2018, a Compound Annual Growth Rate (CAGR) of 88 per cent and Internet-Video-to-TV traffic will increase 8-fold between 2013 and 2018 (50.9 per cent CAGR).
     
    “Consumers are now more acutely aware about the content on their portable devices and the TV”, he further adds.
     
    As the users evolve with digital content streamed to them, the demand for OTT services increases.
     
    It should also be noted that in a report borne out by PricewaterhouseCoopers (PwC) survey, it forecasts 176 million OTT viewers by 2015 generating revenues of $552 million.

     

    Moreover, Morgan Stanley, a multinational financial services company, projects in its report that mobile data subscribers in India are likely to grow on an average by 25 per cent every year to reach 519 million by fiscal 2018, driven by falling handset prices and rise in smart phone usage and penetration.

     

    ‘With Wi-Fi internet access, end-users are looking for enhanced ways to communicate with large format screens too,” S Rajagopalan, a media analyst opines.

     

    “With this, users can also use Smart TV, though the interface is not user-friendly. The manufacturer, therefore, has to innovate with the interface, such as Flex Smartphone or Bluetooth / Wi-Fi-enabled keyboard to be integrated, which will grab the attention of the end-user. Maybe over a period of time, Smart TV will be preferred by the end-user to laptops, which will lead to more speed and bandwidth in the broadband segment,” concludes Rajagopalan.

  • 2014: Cable TV’s year of missed opportunities?

    2014: Cable TV’s year of missed opportunities?

    2014 many would say has been a year of more downs than ups, especially for the cable TV industry. But, if one peels off the superficial layers and looks deep, it would be fair to say that it was indeed a year of opportunity for all the stakeholders in the cable TV ecosystem, despite all the trappings that it had of a Bollywood film with all the drama and twists and turns.

    The year began with industry regulator the Telecom Regulatory Authority of India (TRAI) cracking the whip on errant multisystem operators (MSOs) and last mile owners (LMOs) who had not implemented simple hygiene requirements such as subscriber information and billing in Digital Addressable System (DAS) phase I and II areas. 2014 probably was the most litigious one in recent memory for those in the cable TV ecosystem with the various constituents spending more time in courts or in the portals of the Telecom Disputes Settlement Appellate Tribunal (TDSAT) than in upgrading their systems or moving ahead on business models. LMOs and MSOs snapped at broadcasters and aggregators, even as the latter took swipes at them with their heavy hands. No resolution seemed in sight and hence the anti-climactic postponing of phase III and phase IV DAS to 2016 by the Information and Broadcasting (I&B) Ministry almost came as a lifeline to the industry. Some carped about the postponement, some decided to take it upon themselves to voluntarily digitise, while other LMOs just got back to squabbling once again.

    Even as international strategic and financial investors got repelled by the chaos in Indian cable TV land, domestic lay investors and equity investors too gave the sector a thumbs down. One of the leading stocks, the Sameer Manchanda-run Den Networks, which was the investors’ darling in 2013, registered a 19 per cent erosion in its share price from Rs 161.65 in early January 2014 to Rs 131.30 on 24 December. Hathway Cable & Datacom rose 25 per cent from Rs 278.75 to Rs 347.50. Both underperformed the Bombay stock Exchange Sensex which rose 28.5 per cent from 21,000 on 2 January 2014 to 27,206 on 24 December 2014. However, an exception was the stellar performer  Essel group owned Siti Cable which appreciated 80 per cent from Rs 18.15 to Rs 32.75 on the same dates. 

    November 2014 saw Star India take a big punt and play pioneer by deciding to enter into only Reference Interconnect Offer (RIO) deals with MSOs in DAS areas.  The hope was that it would push cable operators to come up with better subscriber packages and hopefully improve realisations for themselves and Star too. With ARPUs sneaking up marginally, the big MSOs and cable TV cooperatives aggressively moved ahead with the more lucrative broadband offerings to subscribers.

    The year began with the MSOs meeting in different parts of the DAS areas to ensure gross billing could be started. While Delhi and Kolkata could, at least in a few parts start gross billing, Mumbai and other phase I and II cities, even as the year comes to an end, haven’t seen bills being rolled out. The reasons for this being no consensus: on the biller’s name (whether it should be of the LCO or MSO), revenue share between the two and the pending entertainment tax case in the Bombay High Court.

     The next big development in the year was when Hathway Cable and Datacom announced a cricket pack, wherein the MSO created a separate offering consisting of all the sports channels. When the announcement was made, little did people know that the issue would be dragged to the court and would keep the TDSAT occupied for almost the rest of the year. Hathway has been one player that has been in the news throughout, mostly for its progressive moves- from launching new local cable channels, to launching DOCSIS 3 broadband technology. It also wrestled with the major broadcasters such as Star and Zee through the year on terms and conditions.

     2014 was the year of opportunities, as it opened doors for the $100 million Hinduja’s Headend In The Sky (HITS) project and the Cable Virtual Network Operator (CVNO) model. As part of this LMOs can come together and join hands with the MSO to take its infrastructure, thus giving the former the power to own their consumers. The former Indusind Media CEO and promoter of Bhima Riddhi Digital Services Nagesh Chhabria too showed his intent of getting into the cable TV market with a national MSO. A much hyped $200 million announcement – in July about his agreement with Atlas Consolidated LLC (a joint venture between Greenwich Equity Partners and Jagran Infra-Projects led by Sanjiv Mohan Gupta) – to create a national MSO it has been followed by a strange silence since.

    It was a year of opportunity, as after a gap of long seven years, the TRAI decided to defreeze prices and allowed a price hike. The regulator in March, released a notification, offering a 27.5 per cent inflation-linked hike to stakeholders in the tariff ceiling. The hike was to be implemented in two phases: 15 per cent from April 2014 and the remaining 12.5 per cent from January 2015. The move gave some hope to stakeholders to increase their Average Revenue Per User (ARPU) which was at around Rs 180 – a 20-25 per cent increase. But the industry is clearly aiming at much higher ARPUs of Rs 300-350 in the short to medium term. 

    The most important month for the cable TV industry was August. Ask why? Well, this was the month, which shocked the whole value chain.  While the LCOs were relieved, the worried ones were the broadcasters and the MSOs. The newly appointed Information and Broadcasting Minister (now former)  Prakash Javadekar, looking at the condition of phase I and II cities, which had undergone seeding of set top boxes (STBs) decided to further push the digitisation dates for phase III to December 2015 and phase IV to December 2016, from the earlier deadline of December 2014. The reason given by the Minister was that he wanted to promote indigenous STB manufacturers, who had not benefitted much from the earlier two phases.

     The news brought in some cheer for the indigenous STB manufacturers who said that this would help the indigenous manufacturing industry give employment to about 50,000 people and would attract an investment of about Rs 500 crore. The move, according to many would also generate local support facility for repair of STBs and help in smooth implementation of digitisation in the country.

    While, everyone has their own take on the decision, one should take this as an opportunity to be able to complete phase III and IV cities, which includes the small towns and villages, in a much more organised manner. Currently in phase I and II, while boxes have been seeded, no proper rollout of package and billing has happened. The stakeholders have time to ensure that along with seeding of boxes in phase III and IV cities, they can ensure that Consumer Application Forms (CAFs) are filled, the information is added in the Subscriber Management System (SMS), packages are created, offering consumers the option to choose and proper bills are rolled out, bringing in complete addressability and transparency.

     According to many, with delayed digitisation, carriage fees are once again on the rise. According to a Media Partners Asia (MPA) report, carriage fee has gone up by 14 per cent, while broadcasters and MSOs peg this at around 20-25 per cent for niche and news channels. In fact, Colors CEO Raj Nayak at this year’s India panel in MIPCOM said that carriage fees which had come down by 20 per cent are again climbing and have gone back to pre-digitisation rates. Yes, all these can be counted as the drawback of delayed digitisation, but tackling the same is broadcaster Star India’s take on the deals with MSOs.

    The case which kept TDSAT busy this year was the Hathway vs Zee and Star case. It was during this, that Star India, in order to fight discrepancy in deals with MSOs, took a firm decision of entering into only RIO deals with MSOs. While this did hit the MSOs, since their cost of content went up, it did two things. One, it nipped carriage fees and two, opened the doors for the MSOs to increase their ARPUs. In fact broadcasters, who feel that the carriage fees are headed northwards, should consider entering into RIO deals, as was also said by MPA in one of its reports.

     With the extension of digitisation dates, a number of MSOs also decided to opt for voluntary digitisation, which was a welcome move, since it showed the intent of MSOs to see the country fully digitised.

    Keeping digitisation and broadband plans in mind, the year saw a few MSOs raising funds for themselves. Considering the money spent by the MSOs in acquiring content and taking digitisation forward did not match with the on-ground collections, MSOs were left with no choice but raise more funds to complete the task in hand. So while Hathway got board approval to raise Rs 300.80 crore through preferential allotment of shares, Essel Group’s subsidiary Siti Cable Network raised Rs 600 crore through the issuance of securities. Last mile owner Ortel Communications too made its move towards getting listed. The LMO, this year, filed its draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) with the securities and exchange board of India (SEBI). The IPO may raise as much as Rs 360 crore.

    The year also saw the I&B cracking its whip on a few MSOs like Digicable and Kal Cable as their licences were cancelled following refusal of security clearance by the Home Ministry. But the duo got relief from their respective state High Courts and are still up and running. Even as Tamil Nadu former Chief Minister J Jayalalithaa owned Arasu Cable struggles to get its DAS licence, Karnataka state government Minister for Information, Public Relations and Infrastructure R Roshan Baig too showed some interest in entering the cable TV business, this year.

     The cable TV industry, like every year was brought together through one forum organised by indiantelevision.com and MPA, IDOS 2014, held in Goa. The three day event threw light on some important statistics:

    ·         Of the 262 million households in the country only 162 million houses have a TV. Of this, 27 million is taken up by the free to air service providers such as Freedish via satellite and 7 million by terrestrial DD, while the rest comes under cable and satellite.

    ·         Rs 32,000 crore has been invested in digitisation since 2005 with a bulk of the investment coming from the DTH operators followed by the MSOs and LCOs since 2011. Out of this, over Rs 11000 crore in the last 24 to 30 months has been invested by MSOs and LCOs.

    ·         While the cost of all the pay channels on a wholesale basis is Rs 922 to digital platforms, the highest pack price is Rs 550 which is an anomaly and needs correction. Retail pricing is the answer to correct this. And it is competition amongst six DTH, two HITS, five national MSOs and several regional ones and the local cable ops will keep retail rates in check.

     We at indiantelevision.com hope that broadcasters, LMOs, MSOs will take a progressive view towards digitisation of their operations and also becoming transparent with their partners in 2015. The fact is there is a lot of work to be done: more than $3-4 billion are needed to digitise India’s cable TV infrastructure; a large part of these will most likely come from international players.   Many of these who were pacing the sidelines watching the developments clearly got a stomach upset and decided to park their funds elsewhere. Now it is up to the industry to restore investor confidence; that cable TV is a sector where one can see adequate returns. Failing which newer distribution technologies like OTT, video streaming and 4G might end up being good options which video lovers could end up considering.

  • 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.