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Tag: Digital Addressable System

  • MIB claims 90.44% DAS success; MSOs tell Task Force no shortage of STBs

    MIB claims 90.44% DAS success; MSOs tell Task Force no shortage of STBs

    NEW DELHI: The first meeting of the Task Force held after implementation of Phase III of Digital Addressable System (DAS) covering all urban areas was informed that the percentage achievement had increased from 76.45 per cent as on 30 December.2015 to 90.44 per cent as on 15 February. 2016.

    It was also claimed that the seeding of set top boxes (STBs) by multi system operators (MSOs) increased from 6.91 mIIIion to 12.43 mIIIion for the same period.

    An Indian Conditional Access System (iCAS) developed by Department of Electronics and Information Technology wIII be initially available to indigenous STB manufacturers for three years at a nominal fee of $0.5 per STB. Twelve MSOs are reported to have deployed it in their headends.

    Bharat Sanchar Nigam Limited (BSNL) had been asked by the Department of Telecom to provide required connectivity links to MSOs for taking TV signals in Phase III and Phase IV areas. This follows complaints in the last meeting held at the end of December by MSOs about the problems of connectivity links in some Phase III areas.

    Addressing the 14th meeting of the Task Force on implementation of Phases III & IV of DAS in cable TV networks on 16 February, Information and Broadcasting Ministry Special Secretary J S Mathur claimed that the progress achieved was very good in spite of several court cases filed in various courts for extension of the cut-off date.

    Mathur remarked that from the stay granted in some court cases it should not be construed that the digitisation would be put on hold. He emphasised that digitisation is a reality now and cannot be stopped. He said broadcasters and MSOs should spread this message. He said according to a report, the number of MSO dark areas have decreased considerably. He said there was need to find out whether the MSOs who have been granted registration recently have placed orders for STBs.

    Joint Secretary (Broadcasting) R Jaya in an overview of progress of DAS Phase III & IV said a total of 19 cases had been filed in various courts in the country for extension of cut-off date for Phase III. The Ministry was contesting all cases for immediate vacation of stay granted in these cases. The Ministry had filed a petition in the Supreme Court for transfer of these cases for immediate hearing in the Apex court.

    She said 695 MSOs had been granted DAS registration and 164 applications were under process while 240 applications have been received with incomplete information.

    She said the Regional Units (RUs) set up for implementing digitisation in Phases III & IV were fully functional. All RUs are in regular correspondence with MSOs in their regions.

    She claimed that about 300 to 500 calls were received daily on the toll free help line for cable TV digitisation for Phases III & IV.

    Jaya also said that 340 MSOs headends for Phase III & IV have been inspected by Prasar Bharati so far and 109 MSOs head ends of these have been reported to be non-operational.

    The Ministry had requested State Governments to furnish a list of Phase IV areas in their states. Except from Himachal Pradesh and Jammu and Kashmir (which has furnished list of one division only), lists are awaited from other States.

    A representative of J&K Government said some areas in Phase III in the State have still not been covered due to non-availability of STBs with MSOs. It was not known whether and when these MSOs have placed orders for STBs.

    A representative of the Telengana Government said only 30 to 35 per cent Phase III areas had been covered in the State so far and MSOs may require some time to complete their targets.

    Several representatives of MSOs claimed they had sufficient boxes but referred to other problems. The Hathway representative said local cable operators were resisting taking STBs from them for installation due to extension granted by various courts. Another representative of an MSO, the Indusind Media, said in view of the extension granted by courts and analogue transmission still running in some Phase III areas, the broadcasters should charge them on analogue rates according to earlier agreements. The Siticable representative also claimed the problem of stocking the boxes. He added that the MSO had about one million STBs in stock. He remarked that MSOs were required to plan the procurement of STBs in advance which the newly registered MSOs appear to have not done. A representative of GTPL Hathway said some orders of STBs were in transit but it had sufficient stocks.

    An Andhra Pradesh Government representative said there had been no complaint of non-availability of STBs in the State. But the representative of Uttarakhand said there have been reports of STB non-¬availability in some areas. He added that they are holding district level meetings to implement digitisation in the State.

    During discussions it emerged that some MSOs who have not even applied for registration had filed cases for extension in courts. Cases had also been filed by some MSOs who are not technically ready.

    The Telecom Regulatory Authority of India (TRAI) representative said in one court case, local cable operators had been directed by the court to send requests for STBs to MSOs. He suggested that State Governments should seek data from MSOs regarding availability of STBs. He informed that TRAI has recently written to the Chief Secretaries of State / Governments on the benefits accruable from digitisation to State Governments.

    A representative of LCOs from Maharashtra said some DAS Phase IV areas, which had been getting feed from control room in Phase III areas were switched off by MSOs. He added that digitisation is not looking at the consumer and whether he can afford to buy a set top box – particularly in Phase IV areas. 

    Mathur said the entire digitisation is in the interest of consumers and it has to take place as per the timelines. He advised that the stakeholders should encourage people to go for digital.

    A point was made that MSOs should be given freedom to fix the rates of STBs. A representative of TRAI mentioned that TRAI has not fixed any price for STBs and emphasised that the conditions given in tariff orders issued by TRAI on supply and installation of STBs by MSOs to consumers have to be complied and there can be no compromise on the rights of the consumers.

    A representative of CEAMA claimed that the number of companies manufacturing STBs had doubled in last one year; STB production has increased 100  per cent in last one year; one Chinese company is likely to start manufacturing STBs in India; and STB orders are being received from small MSOs. MSOs should place orders in time keeping into view that about two months time is required for integration of CAS in STBs. CEAMA is a member of iCAS.

    Jaya said CEAMA should reach out to MSOs to inform them about iCAS and STBs manufactured by them. The CEAMA representative said it would very soon have a meeting on iCAS in which it will also invite DeitY, iCAS developer and MSOs. Mathur said indigenous manufacturing of STBs should be a priority keeping in view the Make in India programme of the Government.

    The Indian Broadcasting Foundation (IBF) representative, who referred to its appeal in the Supreme Court, said broadcasters are running scrolls on channels that Ministry has not extended deadline for phase III.

    Mathur said the Ministry has requested State Governments to furnish list of Phase IV areas in the State so that progress of digitisation in these areas is monitored. It was mentioned that the information is available with State Governments at various levels viz. hamlets, panchayats and blocks. It was decided that the information at block level would suffice.

    Jaya impressed on stakeholders to start publicity campaigns for Phase IV areas to gain the momentum of digitisation in these areas. It was also noted that though Phase IV covers the entire country, a list of areas was required for knowing the progress of seeding as well as MSO dark areas.

    Mathur asked MSOs and broadcasters to commence work without waiting for the cut-off date for Phase IV. He said those who are yet to apply for MSO registration should apply now keeping into view that about four months are required for processing of applications. He asked the members to inform the MSOs to apply for DAS registration immediately. He added that an advertisement in newspapers is also being issued for registration of MSOs for phase IV areas. In addition, MSOs must also prepare themselves on the STB front. He also stressed upon the issue of MSOs continuing with their seeding activity as the Ministry has already moved the courts; for transfer of all petitions in State High Courts, for vacation of stays granted. It was imperative that the remaining areas of phase III be covered early.

  • MIB claims 90.44% DAS success; MSOs tell Task Force no shortage of STBs

    MIB claims 90.44% DAS success; MSOs tell Task Force no shortage of STBs

    NEW DELHI: The first meeting of the Task Force held after implementation of Phase III of Digital Addressable System (DAS) covering all urban areas was informed that the percentage achievement had increased from 76.45 per cent as on 30 December.2015 to 90.44 per cent as on 15 February. 2016.

    It was also claimed that the seeding of set top boxes (STBs) by multi system operators (MSOs) increased from 6.91 mIIIion to 12.43 mIIIion for the same period.

    An Indian Conditional Access System (iCAS) developed by Department of Electronics and Information Technology wIII be initially available to indigenous STB manufacturers for three years at a nominal fee of $0.5 per STB. Twelve MSOs are reported to have deployed it in their headends.

    Bharat Sanchar Nigam Limited (BSNL) had been asked by the Department of Telecom to provide required connectivity links to MSOs for taking TV signals in Phase III and Phase IV areas. This follows complaints in the last meeting held at the end of December by MSOs about the problems of connectivity links in some Phase III areas.

    Addressing the 14th meeting of the Task Force on implementation of Phases III & IV of DAS in cable TV networks on 16 February, Information and Broadcasting Ministry Special Secretary J S Mathur claimed that the progress achieved was very good in spite of several court cases filed in various courts for extension of the cut-off date.

    Mathur remarked that from the stay granted in some court cases it should not be construed that the digitisation would be put on hold. He emphasised that digitisation is a reality now and cannot be stopped. He said broadcasters and MSOs should spread this message. He said according to a report, the number of MSO dark areas have decreased considerably. He said there was need to find out whether the MSOs who have been granted registration recently have placed orders for STBs.

    Joint Secretary (Broadcasting) R Jaya in an overview of progress of DAS Phase III & IV said a total of 19 cases had been filed in various courts in the country for extension of cut-off date for Phase III. The Ministry was contesting all cases for immediate vacation of stay granted in these cases. The Ministry had filed a petition in the Supreme Court for transfer of these cases for immediate hearing in the Apex court.

    She said 695 MSOs had been granted DAS registration and 164 applications were under process while 240 applications have been received with incomplete information.

    She said the Regional Units (RUs) set up for implementing digitisation in Phases III & IV were fully functional. All RUs are in regular correspondence with MSOs in their regions.

    She claimed that about 300 to 500 calls were received daily on the toll free help line for cable TV digitisation for Phases III & IV.

    Jaya also said that 340 MSOs headends for Phase III & IV have been inspected by Prasar Bharati so far and 109 MSOs head ends of these have been reported to be non-operational.

    The Ministry had requested State Governments to furnish a list of Phase IV areas in their states. Except from Himachal Pradesh and Jammu and Kashmir (which has furnished list of one division only), lists are awaited from other States.

    A representative of J&K Government said some areas in Phase III in the State have still not been covered due to non-availability of STBs with MSOs. It was not known whether and when these MSOs have placed orders for STBs.

    A representative of the Telengana Government said only 30 to 35 per cent Phase III areas had been covered in the State so far and MSOs may require some time to complete their targets.

    Several representatives of MSOs claimed they had sufficient boxes but referred to other problems. The Hathway representative said local cable operators were resisting taking STBs from them for installation due to extension granted by various courts. Another representative of an MSO, the Indusind Media, said in view of the extension granted by courts and analogue transmission still running in some Phase III areas, the broadcasters should charge them on analogue rates according to earlier agreements. The Siticable representative also claimed the problem of stocking the boxes. He added that the MSO had about one million STBs in stock. He remarked that MSOs were required to plan the procurement of STBs in advance which the newly registered MSOs appear to have not done. A representative of GTPL Hathway said some orders of STBs were in transit but it had sufficient stocks.

    An Andhra Pradesh Government representative said there had been no complaint of non-availability of STBs in the State. But the representative of Uttarakhand said there have been reports of STB non-¬availability in some areas. He added that they are holding district level meetings to implement digitisation in the State.

    During discussions it emerged that some MSOs who have not even applied for registration had filed cases for extension in courts. Cases had also been filed by some MSOs who are not technically ready.

    The Telecom Regulatory Authority of India (TRAI) representative said in one court case, local cable operators had been directed by the court to send requests for STBs to MSOs. He suggested that State Governments should seek data from MSOs regarding availability of STBs. He informed that TRAI has recently written to the Chief Secretaries of State / Governments on the benefits accruable from digitisation to State Governments.

    A representative of LCOs from Maharashtra said some DAS Phase IV areas, which had been getting feed from control room in Phase III areas were switched off by MSOs. He added that digitisation is not looking at the consumer and whether he can afford to buy a set top box – particularly in Phase IV areas. 

    Mathur said the entire digitisation is in the interest of consumers and it has to take place as per the timelines. He advised that the stakeholders should encourage people to go for digital.

    A point was made that MSOs should be given freedom to fix the rates of STBs. A representative of TRAI mentioned that TRAI has not fixed any price for STBs and emphasised that the conditions given in tariff orders issued by TRAI on supply and installation of STBs by MSOs to consumers have to be complied and there can be no compromise on the rights of the consumers.

    A representative of CEAMA claimed that the number of companies manufacturing STBs had doubled in last one year; STB production has increased 100  per cent in last one year; one Chinese company is likely to start manufacturing STBs in India; and STB orders are being received from small MSOs. MSOs should place orders in time keeping into view that about two months time is required for integration of CAS in STBs. CEAMA is a member of iCAS.

    Jaya said CEAMA should reach out to MSOs to inform them about iCAS and STBs manufactured by them. The CEAMA representative said it would very soon have a meeting on iCAS in which it will also invite DeitY, iCAS developer and MSOs. Mathur said indigenous manufacturing of STBs should be a priority keeping in view the Make in India programme of the Government.

    The Indian Broadcasting Foundation (IBF) representative, who referred to its appeal in the Supreme Court, said broadcasters are running scrolls on channels that Ministry has not extended deadline for phase III.

    Mathur said the Ministry has requested State Governments to furnish list of Phase IV areas in the State so that progress of digitisation in these areas is monitored. It was mentioned that the information is available with State Governments at various levels viz. hamlets, panchayats and blocks. It was decided that the information at block level would suffice.

    Jaya impressed on stakeholders to start publicity campaigns for Phase IV areas to gain the momentum of digitisation in these areas. It was also noted that though Phase IV covers the entire country, a list of areas was required for knowing the progress of seeding as well as MSO dark areas.

    Mathur asked MSOs and broadcasters to commence work without waiting for the cut-off date for Phase IV. He said those who are yet to apply for MSO registration should apply now keeping into view that about four months are required for processing of applications. He asked the members to inform the MSOs to apply for DAS registration immediately. He added that an advertisement in newspapers is also being issued for registration of MSOs for phase IV areas. In addition, MSOs must also prepare themselves on the STB front. He also stressed upon the issue of MSOs continuing with their seeding activity as the Ministry has already moved the courts; for transfer of all petitions in State High Courts, for vacation of stays granted. It was imperative that the remaining areas of phase III be covered early.

  • Q3-2016: Activation fees boost Indian cable TV companies top & bottom lines

    Q3-2016: Activation fees boost Indian cable TV companies top & bottom lines

    BENGALURU: The Digital Addressable System (DAS) Phase III deadline has helped boost Indian cable TV companies’ top and bottom lines by way of higher than normal activation fees that they charge, and how! Be it Siti Cable, Hathway or Den Network amongst the major players in the field, the companies have reported higher revenues and profits or reduced losses for the quarter ended 31 December, 2015 (Q3-2016, current quarter). Even a regional player like Ortel saw its cable TV connections rise by 32.7 per cent, both year-on-year (YoY) and quarter-on-quarter (QoQ). It is quite likely that without the hike in activation revenue, the big three players would have reported losses.

    Another significant development that has occurred in Q3-2016 is that Siti Cable has become the largest player in terms of revenue. Until the current quarter, it was placed at number three in terms of total revenue among the four players in this report. Den now stands at number two, while Hathway is at number three. Without activation revenue, it is Den that has the highest operating revenue followed by Siti Cable, with Hathway at number three and the minnow Ortel placed at number four in Q3-2016. Please refer to Fig A below. It must be noted that Ortel’s numbers are not indicated in Fig A. Its quarterly operating revenue was in the Rs 45 – 50 crore range as compared to the Rs 300 – Rs 370 crore of the other three players mentioned in this report.

    In terms of cable subscribers, again, it is Siti Cable as well as Ortel that have added cable subscription numbers, with the Den and Hathway cable subscriber base remaining stagnant. Siti Cable added about 11 lakh subscribers in the current quarter and now stands just behind Den. Hathway has moved behind a place to number three in terms of subscriber base. Ortel’s total cable subscriber base was less than six lakh at the end of December 2015. As a part of an on-going process that began with the implementation (even before in some cases) of DAS Phase I, most multi system operators (MSOs) have been replacing analogue set-top-boxes (STBs) with digital and High Definition (HD) boxes, this report does not dwell on these replacement numbers. 

    Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore
    (2) Some figures are approximate.
    (3) Other income has not been factored in for EBIDTA in the report.
    (4) Some figures are estimates.
    (5) This report is more skewed towards the financial performance parameters in a limited way, rather than the operational and operational performance parameters of the sample companies.

    Other Revenue Streams

    Another revenue stream that is growing is wireline broadband internet (broadband). Revenue contribution from the broadband segment of each of the four companies has been increasing steadily, to the extent, that in the case of Hathway, broadband internet revenue was 26.2 per cent of operating revenue in Q2-2016 and Q3-2016. The companies have been regularly reporting increase in broadband internet subscription base. Many MSOs have been focusing on broadband internet as a growth engine for revenue and profitability because of the high average revenue per user (ARPU) that the segment brings in. Wireline Internet signals can ride on the MSOs’ existing cable fibre and they don’t have to lay fresh optics. Also, for most MSOs, it is easier to rope in existing cable subscribers for broadband internet services.

    From that point of view, Q3-2016 is an anomaly of sorts, and for this also, it is the higher than normal contribution to revenue by activation charges that is responsible. In Q3-2016, broadband revenue as percentage of operating revenue was either flat QoQ (Hathway) or has declined in the case of Siti Cable and Ortel, while it has increased marginally in the case of Den. But that does not imply that broadband revenue has declined, it is only that its contribution to overall revenue that has been affected. In absolute rupee terms, it has increased YoY and QoQ in Q3-2016 for all the four companies.

    Besides broadband, some companies such as Den have e-commerce portals and also manage a soccer team. This report does not cover those revenues.

    Cable Operations and Activation Fees, Profitability

    Cable operations revenue comprises Subscription Revenue, Activation Fees, Carriage or Placement charges and other income. Fig A1 below gives a breakup of the first three income streams of the three major players.

    Two of the four companies in this report have reported profit after tax (PAT) – Ortel and Siti Cable, while the other two have reported YoY and QoQ EBIDTA increase for the current quarter.

    Let us look at the profitable companies first from their cable operations and activation and profitability perspectives. Please refer to Fig B below.

    Siti Cable

    Last year, in Q4-2015, the Essel Group’s Dish TV reported profit for the first time and led the direct to home (DTH) industry in terms of improved numbers. The trend has continued so far. In Q3-2016, it is another Essel Group company from the carriage industry – Siti Cable that has reported profit after tax (PAT) of Rs 56 crore (15 per cent margin on operating revenue or OPREV) as compared to a loss of Rs 18.5 crore in the corresponding year ago quarter and a loss of Rs 19.4 crore in the immediate trailing quarter. The growth essentially has been driven by higher activation revenue in the current quarter due to the 11 lakh subscribers added in Q3-2016.

    Siti Cable’s activation revenue in the current quarter was almost eight times (grew 7.7 times) YoY at Rs 105 crore (28.4 per cent of OPREV) as compared to Rs 13.6 crore (6.1 per cent of OPREV) and grew by more than five times (5.4 times) QoQ as compared to Rs 19.4 crore (8.8 per cent of OPREV). EBIDTA in the current quarter more than doubled (up 2.6 times) YoY at Rs 129.9 crore as compared to Rs 50.1 crore and also more than doubled QoQ (up 2.5 times) from Rs 51.5 crore.

    Siti Cable executive director & CEO V D Wadhwa said, “Focussing on our guiding principle of creating value for all stakeholders, the company has achieved the financial turnaround for the first time in the history of the company and reported PBT of Rs 56 crore in Q3-2016 and Rs 5.1 crore for the nine months of FY16. At Siti Cable, our efforts to strive for operational excellence continue and during the quarter the company has added 1.1 million digital subscribers, over 10,000 broadband customers and achieved all-time high EBITDA growth of 159 per cent YoY. We expect this momentum to sustain in the coming quarters.”

    “We are also aggressively looking for inorganic growth opportunities in the geographies, which make strategic sense for us to expand and have acquired some networks in the western part of the country, which shall add additional 1.5 million subscribers to our existing subscriber base of 10.7 million. We strongly believe in cohesiveness among like-minded players and are actively engaged in our efforts as a consolidator in the industry,” he added.

    Ortel

    The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited reported a 21.8 per cent YoY revenue (Total Income from Operations or TIO) at Rs 48.03 crore in the current quarter as compared to Rs 39.44 crore and 4.9 per cent QoQ growth as compared to Rs 45.79 crore. The company reported PAT in Q3-2016 at Rs 3.89 crore (8.1 per cent margin) as compared to a loss of Rs 0.1 crore in Q3-2015 and 37.5 per cent higher QoQ PAT as compared to Rs 2.83 crore (6.2 per cent margin). Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

    Ortel’s connection (activation) fees increased 32.7 per cent to Rs 1 crore as compared to Rs 0.70 crore and increased 33.8 per cent as compared to Rs 0.70 crore. Ortel’s YoY revenue generating units (RGU) grew 19 per cent to 626,475 as compared to 526,551 and increased 9.6 per cent QoQ as compared to 571,834 in Q2-2016. Cable TV RGUs increased 19.3 per cent YoY in Q3-2016 to 558,766 as compared to 468,274 and increased 10 per cent as compared to 508,171 in Q2-2016. Ortel’s YoY primary digital cable RGUs grew 33.9 per cent to 127,098 in Q3-2016 as compared to 94,926 in the corresponding prior year quarter and grew 8.3 per cent QoQ to 117,401. The company says that its cable TV penetration stood at 23.7 per cent in the current quarter.

    Ortel president and CEO Rath said, “I am delighted to share that our key strategy of LCO buyout is receiving huge response in our markets. Healthy addition to RGUs has led to strong growth of 38 per cent in bottom-line on a Q-o-Q basis. Given the strong pipeline of RGUs yet to be integrated, we are confident of improving upon this solid performance in the coming quarters.”

    “FY-2016 will be one-of-the-best-years in the history of Ortel Communications backed by record RGU additions and solid visibility for LCO buyouts in the coming year. With more than 90 per cent subscribers on ‘last mile,’ we remain committed to this model and strongly believe it will create tremendous value for all stakeholders going forward,” he added.

    Hathway

    Indian MSO Hathway Cable and Datacom Limited reported 25.6 per cent YoY growth in standalone Total Income from Operations (TIO) in Q3-2016 at Rs 300.43 crore as compared to Rs 239.15 crore and 9.6 per cent more than the Rs 270.03 crore in Q2-2016.

    Activation revenue in Q3-2016 more than tripled (3.1 times) YoY to Rs 22.3 crore as compared to Rs 7.2 crore and was almost fivefold (4.7 times) the Rs 4.5 crore in Q2-2016.

    The company’s EBIDTA (excluding other income) in Q3-2016 more than doubled (by 2.02 times) YoY to Rs 49.81 crore (16.6 per cent margin) as compared to Rs 24.58 crore (10.3 per cent margin) and increased 45.8 per cent QoQ as compared to Rs 34.15 crore (12.5 per cent margin) in the immediate trailing quarter. 

    Hathway’s loss in the current quarter reduced to Rs 32.58 crore, in Q3-2015 it was Rs 58.05 crore and in the immediate trailing quarter it was Rs 48.94 crore.

    Den Networks

    Den has reported activation revenue of Rs 86 crore in Q3-2016, more than fivefold YoY as compared to the Rs 15 crore in Q3-2015 and more the than three times the Rs 27 crore in the immediate trailing quarter. The company says that it has added nine lakh digital subscribers in the current quarter, taking its digital subscriber base to 85 lakh as compared to the 76 lakh in the previous quarter. The company had reported a digital subscriber base of 68 lakh for the Q3-2015, hence the share of its digital subscriber base has gone up from 58 per cent in Q3-2015 to 65 per cent in the current quarter. The company says that its Cable DAS ARPU has increased 3.8 per cent to Rs 80 in the current quarter as compared to Rs 77 in the immediate trailing quarter.

    Den reported a lower YoY and QoQ consolidated loss of Rs 48.37 crore in the current quarter as compared to a loss of Rs 62.60 crore in Q3-2015 and a loss of Rs 75.23 crore in the immediate trailing quarter.

    The company reported EBIDTA of Rs 42.99 crore (12.2 per cent margin) in the current quarter as compared to an operating profit of Rs 0.28 crore (0.1 per cent margin) in Q3-2015 and an operating loss of Rs 11.27 crore in the immediate trailing quarter. The company’s pre-Activation Cable EBIDTA in the current quarter was Rs 6 crore as compared to the Rs 34 crore in Q3-2015 and a negative Cable EBIDTA of Rs 5 crore in Q2-2016.

    Broadband

    As mentioned above, while broadband revenue in the current quarter has increased YoY and QoQ for all the four companies in this report, it contribution to overall revenues has gone down in the case of two companies, is stable in the case of another one and has increased fractionally in the case of fourth company. Please refer to Fig C below.

    Hathway’s Broadband subscription revenue in Q3-2016 increased 53.4 per cent YoY to Rs 78.7 crore as compared to Rs 57.7 crore and increased 9.5 per cent QoQ as compared to Rs 57.7 crore.

    Siti Cable Broadband revenue in the current quarter almost doubled (grew 99 per cent) at Rs 13.9 crore (3.8 per cent of OPREV) as compared to Rs 7 crore (3.2 per cent of OPREV) in Q3-2015 and increased 49.5 per cent QoQ as compared to Rs 9.3 crore (four per cent of OPREV).

    Den has also ramped up its broadband subscribers by 33.3 per cent to 76,000 in the current quarter from 57,000 in the immediate trailing quarter. The company’s broadband segment revenue increased by over five times YoY (5.5 times) at Rs 11.96 crore (3.4 per cent of TIO) as compared to Rs 2.17 crore (0.8 per cent of TIO) in corresponding prior year quarter and increased 58 per cent QoQ as compared to Rs 8.23 crore (three per cent of TIO). The segment’s YoY operating loss increased to Rs 19.57 crore as compared to Rs 12.37 crore, but reduced QoQ as compared to Rs 23.07 crore. The company says that broadband ARPU has declined by Rs 10 in the current quarter to Rs 760 from Rs 770 in the previous quarter.

    Den’s Broadband Post Activation EBIDTA in Q3-2016 was negative Rs 16 crore as compared to the negative Rs 11 crore in Q3-2015 and negative Rs 20 crore in Q2-2016.

    Ortel’s broadband segment reported 16.3 per cent higher revenue at Rs 8.28 crore as compared to Rs 7.12 crore in the corresponding year ago quarter and 1.7 per cent more than the Rs 8.14 crore in Q2-2016. The broadband segment reported an operating profit of Rs 4.78 crore in the current quarter as compared to Rs 4.52 crore in Q3-2015 and 9.1 per cent higher than the Rs 438 crore in Q2-2016.

    Ortel’s Rath said, “Broadband business continues to do well and remains a key focus area for us. We are working towards delivering notable growth in subscriber base, which would further augment our performance and overall profitability.”

    Concluding remarks

    With 31 December, 2016 as the sunset date for DAS phase IV, the next four quarters should be growth periods for the carriage industry – this includes cable, DTH and HITS (head-end in the sky) companies. How and how well they exploit this opportunity will decide their fate in the medium to long term. Two of the players in this report – Siti Cable and Ortel have said that they are looking at organic growth, and the growth in their subscription base over the past few quarters is a clear indication of that intent. Companies’ toplines and bottomlines will definitely grow over the next few quarters.

    Cable industry players face competition from the existing internet service players like the behemoth Airtel, which is the second largest wireline broadband player in the country after the public sector BSNL. While BSNL and the third largest wireline internet services player in the country – another public sector company MTNL, have been stagnating or losing in terms of subscribers, another MSO, a regional player, ACT Broadband is the fourth largest wireline broadband internet services company in the country. ACT had about 8.4 lakh subscribers at the end of November 2015. It has laid separate optic fibre for internet, rather than let it ride on its cable fibre network and has been canvassing for customers as a pure wireline internet services player in areas where it does not have cable subscribers.

    The race between activation fees and broadband revenue in terms of growth is likely to continue over the next few quarters, until the industry reaches maturity and activation revenues peter out. It remains to be seen how the companies will perform once the big revenue stream from activation fees dries up. Notwithstanding, the court stays that some players in carriage industry will obtain to delay the digitisation process, the next 24 months should be an interesting time for carriage ecosystem as it matures.

  • Q3-2016: Activation fees boost Indian cable TV companies top & bottom lines

    Q3-2016: Activation fees boost Indian cable TV companies top & bottom lines

    BENGALURU: The Digital Addressable System (DAS) Phase III deadline has helped boost Indian cable TV companies’ top and bottom lines by way of higher than normal activation fees that they charge, and how! Be it Siti Cable, Hathway or Den Network amongst the major players in the field, the companies have reported higher revenues and profits or reduced losses for the quarter ended 31 December, 2015 (Q3-2016, current quarter). Even a regional player like Ortel saw its cable TV connections rise by 32.7 per cent, both year-on-year (YoY) and quarter-on-quarter (QoQ). It is quite likely that without the hike in activation revenue, the big three players would have reported losses.

    Another significant development that has occurred in Q3-2016 is that Siti Cable has become the largest player in terms of revenue. Until the current quarter, it was placed at number three in terms of total revenue among the four players in this report. Den now stands at number two, while Hathway is at number three. Without activation revenue, it is Den that has the highest operating revenue followed by Siti Cable, with Hathway at number three and the minnow Ortel placed at number four in Q3-2016. Please refer to Fig A below. It must be noted that Ortel’s numbers are not indicated in Fig A. Its quarterly operating revenue was in the Rs 45 – 50 crore range as compared to the Rs 300 – Rs 370 crore of the other three players mentioned in this report.

    In terms of cable subscribers, again, it is Siti Cable as well as Ortel that have added cable subscription numbers, with the Den and Hathway cable subscriber base remaining stagnant. Siti Cable added about 11 lakh subscribers in the current quarter and now stands just behind Den. Hathway has moved behind a place to number three in terms of subscriber base. Ortel’s total cable subscriber base was less than six lakh at the end of December 2015. As a part of an on-going process that began with the implementation (even before in some cases) of DAS Phase I, most multi system operators (MSOs) have been replacing analogue set-top-boxes (STBs) with digital and High Definition (HD) boxes, this report does not dwell on these replacement numbers. 

    Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore
    (2) Some figures are approximate.
    (3) Other income has not been factored in for EBIDTA in the report.
    (4) Some figures are estimates.
    (5) This report is more skewed towards the financial performance parameters in a limited way, rather than the operational and operational performance parameters of the sample companies.

    Other Revenue Streams

    Another revenue stream that is growing is wireline broadband internet (broadband). Revenue contribution from the broadband segment of each of the four companies has been increasing steadily, to the extent, that in the case of Hathway, broadband internet revenue was 26.2 per cent of operating revenue in Q2-2016 and Q3-2016. The companies have been regularly reporting increase in broadband internet subscription base. Many MSOs have been focusing on broadband internet as a growth engine for revenue and profitability because of the high average revenue per user (ARPU) that the segment brings in. Wireline Internet signals can ride on the MSOs’ existing cable fibre and they don’t have to lay fresh optics. Also, for most MSOs, it is easier to rope in existing cable subscribers for broadband internet services.

    From that point of view, Q3-2016 is an anomaly of sorts, and for this also, it is the higher than normal contribution to revenue by activation charges that is responsible. In Q3-2016, broadband revenue as percentage of operating revenue was either flat QoQ (Hathway) or has declined in the case of Siti Cable and Ortel, while it has increased marginally in the case of Den. But that does not imply that broadband revenue has declined, it is only that its contribution to overall revenue that has been affected. In absolute rupee terms, it has increased YoY and QoQ in Q3-2016 for all the four companies.

    Besides broadband, some companies such as Den have e-commerce portals and also manage a soccer team. This report does not cover those revenues.

    Cable Operations and Activation Fees, Profitability

    Cable operations revenue comprises Subscription Revenue, Activation Fees, Carriage or Placement charges and other income. Fig A1 below gives a breakup of the first three income streams of the three major players.

    Two of the four companies in this report have reported profit after tax (PAT) – Ortel and Siti Cable, while the other two have reported YoY and QoQ EBIDTA increase for the current quarter.

    Let us look at the profitable companies first from their cable operations and activation and profitability perspectives. Please refer to Fig B below.

    Siti Cable

    Last year, in Q4-2015, the Essel Group’s Dish TV reported profit for the first time and led the direct to home (DTH) industry in terms of improved numbers. The trend has continued so far. In Q3-2016, it is another Essel Group company from the carriage industry – Siti Cable that has reported profit after tax (PAT) of Rs 56 crore (15 per cent margin on operating revenue or OPREV) as compared to a loss of Rs 18.5 crore in the corresponding year ago quarter and a loss of Rs 19.4 crore in the immediate trailing quarter. The growth essentially has been driven by higher activation revenue in the current quarter due to the 11 lakh subscribers added in Q3-2016.

    Siti Cable’s activation revenue in the current quarter was almost eight times (grew 7.7 times) YoY at Rs 105 crore (28.4 per cent of OPREV) as compared to Rs 13.6 crore (6.1 per cent of OPREV) and grew by more than five times (5.4 times) QoQ as compared to Rs 19.4 crore (8.8 per cent of OPREV). EBIDTA in the current quarter more than doubled (up 2.6 times) YoY at Rs 129.9 crore as compared to Rs 50.1 crore and also more than doubled QoQ (up 2.5 times) from Rs 51.5 crore.

    Siti Cable executive director & CEO V D Wadhwa said, “Focussing on our guiding principle of creating value for all stakeholders, the company has achieved the financial turnaround for the first time in the history of the company and reported PBT of Rs 56 crore in Q3-2016 and Rs 5.1 crore for the nine months of FY16. At Siti Cable, our efforts to strive for operational excellence continue and during the quarter the company has added 1.1 million digital subscribers, over 10,000 broadband customers and achieved all-time high EBITDA growth of 159 per cent YoY. We expect this momentum to sustain in the coming quarters.”

    “We are also aggressively looking for inorganic growth opportunities in the geographies, which make strategic sense for us to expand and have acquired some networks in the western part of the country, which shall add additional 1.5 million subscribers to our existing subscriber base of 10.7 million. We strongly believe in cohesiveness among like-minded players and are actively engaged in our efforts as a consolidator in the industry,” he added.

    Ortel

    The Bibhu Prasad Rath led regional cable television and broadband internet player Ortel Communications Limited reported a 21.8 per cent YoY revenue (Total Income from Operations or TIO) at Rs 48.03 crore in the current quarter as compared to Rs 39.44 crore and 4.9 per cent QoQ growth as compared to Rs 45.79 crore. The company reported PAT in Q3-2016 at Rs 3.89 crore (8.1 per cent margin) as compared to a loss of Rs 0.1 crore in Q3-2015 and 37.5 per cent higher QoQ PAT as compared to Rs 2.83 crore (6.2 per cent margin). Ortel provides services in the Indian states of Odisha, Chhattisgarh, Andhra Pradesh, Madhya Pradesh and West Bengal.

    Ortel’s connection (activation) fees increased 32.7 per cent to Rs 1 crore as compared to Rs 0.70 crore and increased 33.8 per cent as compared to Rs 0.70 crore. Ortel’s YoY revenue generating units (RGU) grew 19 per cent to 626,475 as compared to 526,551 and increased 9.6 per cent QoQ as compared to 571,834 in Q2-2016. Cable TV RGUs increased 19.3 per cent YoY in Q3-2016 to 558,766 as compared to 468,274 and increased 10 per cent as compared to 508,171 in Q2-2016. Ortel’s YoY primary digital cable RGUs grew 33.9 per cent to 127,098 in Q3-2016 as compared to 94,926 in the corresponding prior year quarter and grew 8.3 per cent QoQ to 117,401. The company says that its cable TV penetration stood at 23.7 per cent in the current quarter.

    Ortel president and CEO Rath said, “I am delighted to share that our key strategy of LCO buyout is receiving huge response in our markets. Healthy addition to RGUs has led to strong growth of 38 per cent in bottom-line on a Q-o-Q basis. Given the strong pipeline of RGUs yet to be integrated, we are confident of improving upon this solid performance in the coming quarters.”

    “FY-2016 will be one-of-the-best-years in the history of Ortel Communications backed by record RGU additions and solid visibility for LCO buyouts in the coming year. With more than 90 per cent subscribers on ‘last mile,’ we remain committed to this model and strongly believe it will create tremendous value for all stakeholders going forward,” he added.

    Hathway

    Indian MSO Hathway Cable and Datacom Limited reported 25.6 per cent YoY growth in standalone Total Income from Operations (TIO) in Q3-2016 at Rs 300.43 crore as compared to Rs 239.15 crore and 9.6 per cent more than the Rs 270.03 crore in Q2-2016.

    Activation revenue in Q3-2016 more than tripled (3.1 times) YoY to Rs 22.3 crore as compared to Rs 7.2 crore and was almost fivefold (4.7 times) the Rs 4.5 crore in Q2-2016.

    The company’s EBIDTA (excluding other income) in Q3-2016 more than doubled (by 2.02 times) YoY to Rs 49.81 crore (16.6 per cent margin) as compared to Rs 24.58 crore (10.3 per cent margin) and increased 45.8 per cent QoQ as compared to Rs 34.15 crore (12.5 per cent margin) in the immediate trailing quarter. 

    Hathway’s loss in the current quarter reduced to Rs 32.58 crore, in Q3-2015 it was Rs 58.05 crore and in the immediate trailing quarter it was Rs 48.94 crore.

    Den Networks

    Den has reported activation revenue of Rs 86 crore in Q3-2016, more than fivefold YoY as compared to the Rs 15 crore in Q3-2015 and more the than three times the Rs 27 crore in the immediate trailing quarter. The company says that it has added nine lakh digital subscribers in the current quarter, taking its digital subscriber base to 85 lakh as compared to the 76 lakh in the previous quarter. The company had reported a digital subscriber base of 68 lakh for the Q3-2015, hence the share of its digital subscriber base has gone up from 58 per cent in Q3-2015 to 65 per cent in the current quarter. The company says that its Cable DAS ARPU has increased 3.8 per cent to Rs 80 in the current quarter as compared to Rs 77 in the immediate trailing quarter.

    Den reported a lower YoY and QoQ consolidated loss of Rs 48.37 crore in the current quarter as compared to a loss of Rs 62.60 crore in Q3-2015 and a loss of Rs 75.23 crore in the immediate trailing quarter.

    The company reported EBIDTA of Rs 42.99 crore (12.2 per cent margin) in the current quarter as compared to an operating profit of Rs 0.28 crore (0.1 per cent margin) in Q3-2015 and an operating loss of Rs 11.27 crore in the immediate trailing quarter. The company’s pre-Activation Cable EBIDTA in the current quarter was Rs 6 crore as compared to the Rs 34 crore in Q3-2015 and a negative Cable EBIDTA of Rs 5 crore in Q2-2016.

    Broadband

    As mentioned above, while broadband revenue in the current quarter has increased YoY and QoQ for all the four companies in this report, it contribution to overall revenues has gone down in the case of two companies, is stable in the case of another one and has increased fractionally in the case of fourth company. Please refer to Fig C below.

    Hathway’s Broadband subscription revenue in Q3-2016 increased 53.4 per cent YoY to Rs 78.7 crore as compared to Rs 57.7 crore and increased 9.5 per cent QoQ as compared to Rs 57.7 crore.

    Siti Cable Broadband revenue in the current quarter almost doubled (grew 99 per cent) at Rs 13.9 crore (3.8 per cent of OPREV) as compared to Rs 7 crore (3.2 per cent of OPREV) in Q3-2015 and increased 49.5 per cent QoQ as compared to Rs 9.3 crore (four per cent of OPREV).

    Den has also ramped up its broadband subscribers by 33.3 per cent to 76,000 in the current quarter from 57,000 in the immediate trailing quarter. The company’s broadband segment revenue increased by over five times YoY (5.5 times) at Rs 11.96 crore (3.4 per cent of TIO) as compared to Rs 2.17 crore (0.8 per cent of TIO) in corresponding prior year quarter and increased 58 per cent QoQ as compared to Rs 8.23 crore (three per cent of TIO). The segment’s YoY operating loss increased to Rs 19.57 crore as compared to Rs 12.37 crore, but reduced QoQ as compared to Rs 23.07 crore. The company says that broadband ARPU has declined by Rs 10 in the current quarter to Rs 760 from Rs 770 in the previous quarter.

    Den’s Broadband Post Activation EBIDTA in Q3-2016 was negative Rs 16 crore as compared to the negative Rs 11 crore in Q3-2015 and negative Rs 20 crore in Q2-2016.

    Ortel’s broadband segment reported 16.3 per cent higher revenue at Rs 8.28 crore as compared to Rs 7.12 crore in the corresponding year ago quarter and 1.7 per cent more than the Rs 8.14 crore in Q2-2016. The broadband segment reported an operating profit of Rs 4.78 crore in the current quarter as compared to Rs 4.52 crore in Q3-2015 and 9.1 per cent higher than the Rs 438 crore in Q2-2016.

    Ortel’s Rath said, “Broadband business continues to do well and remains a key focus area for us. We are working towards delivering notable growth in subscriber base, which would further augment our performance and overall profitability.”

    Concluding remarks

    With 31 December, 2016 as the sunset date for DAS phase IV, the next four quarters should be growth periods for the carriage industry – this includes cable, DTH and HITS (head-end in the sky) companies. How and how well they exploit this opportunity will decide their fate in the medium to long term. Two of the players in this report – Siti Cable and Ortel have said that they are looking at organic growth, and the growth in their subscription base over the past few quarters is a clear indication of that intent. Companies’ toplines and bottomlines will definitely grow over the next few quarters.

    Cable industry players face competition from the existing internet service players like the behemoth Airtel, which is the second largest wireline broadband player in the country after the public sector BSNL. While BSNL and the third largest wireline internet services player in the country – another public sector company MTNL, have been stagnating or losing in terms of subscribers, another MSO, a regional player, ACT Broadband is the fourth largest wireline broadband internet services company in the country. ACT had about 8.4 lakh subscribers at the end of November 2015. It has laid separate optic fibre for internet, rather than let it ride on its cable fibre network and has been canvassing for customers as a pure wireline internet services player in areas where it does not have cable subscribers.

    The race between activation fees and broadband revenue in terms of growth is likely to continue over the next few quarters, until the industry reaches maturity and activation revenues peter out. It remains to be seen how the companies will perform once the big revenue stream from activation fees dries up. Notwithstanding, the court stays that some players in carriage industry will obtain to delay the digitisation process, the next 24 months should be an interesting time for carriage ecosystem as it matures.

  • TDSAT asks Canara Star for payment plan to clear Star India’s arrears

    TDSAT asks Canara Star for payment plan to clear Star India’s arrears

    NEW DELHI: Canara Star has been asked by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to present a payment schedule to Star India to settle their long-pending dispute.

    However, TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava accepted the plea by Star India counsel Arjun Natarajan that this schedule should not come in the way of its requirement to furnish a guarantee.

    Earlier on 4 February, the Bench had granted a week’s time to Canara Star represented by counsel Tushar Singh, to furnish a guarantee.

    In terms of the earlier order of 14 January, the directors of Canara Star were present in person before TDSAT on 29 January. 

    In the hearing in third week of December, the Tribunal had asked Canara Star to intimate Star India whether it admits the SMS reports submitted by the broadcaster for the period 2014 to January 2015.

    The common order by the Tribunal on three petitions including one by Star India against Canara Star claiming recovery dues of about Rs 3 crore pertaining to the MSO’s operations in the Digital Addressable System (DAS) area of Bangalore said this was subject to the two parties failing to arrive at a final settlement.

    The directive had come after being informed by Canara Star counsel that the parties had failed to resolve the dispute, though Star India counsels Kunal Tandon and Arjun Natarajan had told the Tribunal that no attempts had been made by Canara Star to resolve the dispute.

    The Tribunal had also asked Canara to produce its bank statements and materials to show payments made by it towards invoices raised by Star India based on Canara’s SMS reports.

    Canara, which has allegedly sold off its business to another MSO called All Digital, was to produce its deed of transfer of establishment to All Digital which was made a party in the petition filed by Star India.

    The other two petitions are by Canara Star challenging disconnection notices issues by Star India for analogue areas of Kumta and Bhatkal.

  • TDSAT asks Canara Star for payment plan to clear Star India’s arrears

    TDSAT asks Canara Star for payment plan to clear Star India’s arrears

    NEW DELHI: Canara Star has been asked by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to present a payment schedule to Star India to settle their long-pending dispute.

    However, TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava accepted the plea by Star India counsel Arjun Natarajan that this schedule should not come in the way of its requirement to furnish a guarantee.

    Earlier on 4 February, the Bench had granted a week’s time to Canara Star represented by counsel Tushar Singh, to furnish a guarantee.

    In terms of the earlier order of 14 January, the directors of Canara Star were present in person before TDSAT on 29 January. 

    In the hearing in third week of December, the Tribunal had asked Canara Star to intimate Star India whether it admits the SMS reports submitted by the broadcaster for the period 2014 to January 2015.

    The common order by the Tribunal on three petitions including one by Star India against Canara Star claiming recovery dues of about Rs 3 crore pertaining to the MSO’s operations in the Digital Addressable System (DAS) area of Bangalore said this was subject to the two parties failing to arrive at a final settlement.

    The directive had come after being informed by Canara Star counsel that the parties had failed to resolve the dispute, though Star India counsels Kunal Tandon and Arjun Natarajan had told the Tribunal that no attempts had been made by Canara Star to resolve the dispute.

    The Tribunal had also asked Canara to produce its bank statements and materials to show payments made by it towards invoices raised by Star India based on Canara’s SMS reports.

    Canara, which has allegedly sold off its business to another MSO called All Digital, was to produce its deed of transfer of establishment to All Digital which was made a party in the petition filed by Star India.

    The other two petitions are by Canara Star challenging disconnection notices issues by Star India for analogue areas of Kumta and Bhatkal.

  • Airtel DTH revenue up 19% on higher subscriber additions & ARPU

    Airtel DTH revenue up 19% on higher subscriber additions & ARPU

    BENGALURU: The 31 December, 2015 deadline for Digital Addressable System (DAS) Phase III has been a boost for the carriage industry in subscriber additions, revenues, and operating profits. Buoyed by the government’s decision to stick to deadlines for digitisation, the direct-to-home (DTH) industry in India is continuing its bloom run, if one were to go by the results reported by Bharti Airtel for its Digital TV services (Airtel DTH) for the quarter ended 31 December, 2015 (Q3-2016, current quarter).

     

    Revenue in Q3-2016 increased 19 per cent to Rs 742.2 crore, up 19 per cent YoY as compared to Rs 623.4 crore. EBIDTA for Q3-2016 grew 45 per cent to Rs 247.4 crore (33.3 per cent margin) as compared to Rs 170.7 crore (27.4 per cent margin).

     

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

     

    The segment’s subscriber base grew 13.2 per cent YoY to 111.06 lakh in the current quarter as compared to 98.10 lakh and grew five per cent as compared to 105.76 lakh in the immediate preceding quarter. Though in US dollar terms, average revenue per user (ARPU) was constant YoY and QoQ at $3.5, in Indian rupees it has increased seven per cent YoY to Rs 229 from Rs 214 and increased two per cent QoQ from Rs 224. Given that the deadline for DAS phase III was 31 December, 2015, Airtel DTH segment reported 5.30 lakh net subscriber additions in the current quarter, which was almost double (1.96 times) the 2.70 lakh subscriber additions in Q3-2015 and more than triple (3.2 times) the 1.64 lakh subscribers added in Q2-2016.

     

    Subscriber churn in Q3-2016 was lower at 0.7 per cent as compared to one per cent in Q3-2015 and 1.3 per cent in the immediate trailing quarter.

     

    Airtel’s CAPEX for its DTH segment more than doubled (by 2.1 times) to Rs 342.2 crore as compared to Rs 163 crore in Q3-2015. Airtel’s cumulative investments in its DTH segment increased 17 per cent YoY to Rs 6177 crore as compared to Rs 5494.8 crore.

  • Airtel DTH revenue up 19% on higher subscriber additions & ARPU

    Airtel DTH revenue up 19% on higher subscriber additions & ARPU

    BENGALURU: The 31 December, 2015 deadline for Digital Addressable System (DAS) Phase III has been a boost for the carriage industry in subscriber additions, revenues, and operating profits. Buoyed by the government’s decision to stick to deadlines for digitisation, the direct-to-home (DTH) industry in India is continuing its bloom run, if one were to go by the results reported by Bharti Airtel for its Digital TV services (Airtel DTH) for the quarter ended 31 December, 2015 (Q3-2016, current quarter).

     

    Revenue in Q3-2016 increased 19 per cent to Rs 742.2 crore, up 19 per cent YoY as compared to Rs 623.4 crore. EBIDTA for Q3-2016 grew 45 per cent to Rs 247.4 crore (33.3 per cent margin) as compared to Rs 170.7 crore (27.4 per cent margin).

     

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

     

    The segment’s subscriber base grew 13.2 per cent YoY to 111.06 lakh in the current quarter as compared to 98.10 lakh and grew five per cent as compared to 105.76 lakh in the immediate preceding quarter. Though in US dollar terms, average revenue per user (ARPU) was constant YoY and QoQ at $3.5, in Indian rupees it has increased seven per cent YoY to Rs 229 from Rs 214 and increased two per cent QoQ from Rs 224. Given that the deadline for DAS phase III was 31 December, 2015, Airtel DTH segment reported 5.30 lakh net subscriber additions in the current quarter, which was almost double (1.96 times) the 2.70 lakh subscriber additions in Q3-2015 and more than triple (3.2 times) the 1.64 lakh subscribers added in Q2-2016.

     

    Subscriber churn in Q3-2016 was lower at 0.7 per cent as compared to one per cent in Q3-2015 and 1.3 per cent in the immediate trailing quarter.

     

    Airtel’s CAPEX for its DTH segment more than doubled (by 2.1 times) to Rs 342.2 crore as compared to Rs 163 crore in Q3-2015. Airtel’s cumulative investments in its DTH segment increased 17 per cent YoY to Rs 6177 crore as compared to Rs 5494.8 crore.

  • TDSAT gives Maharashtra’s World Vision final chance to present case against Indiacast

    TDSAT gives Maharashtra’s World Vision final chance to present case against Indiacast

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has given World Vision Cable Network, Maharashtra, one final chance to present its case against Indiacast UTV Media Distribution on 10 February.

     

    Noting that no one had appeared in the hearing, TDSAT chairperson Aftab Alam and members Kuldip Singh and B B Srivastava said, “If no one appears on the next date, the petition may be dismissed for non-prosecution.”

     

    The Tribunal noted that it appeared that after filing the petition, World Vision had lost interest in the matter but listed the matter for next month “as an indulgence.”

     

    In the order of 14 December, 2015, the Tribunal had noted that World Vision’s area of operation was coming under the Digital Addressable System (DAS) regime from 1 January, 2016 and it was observed that any final order on the petition may be passed only after the Tribunal was satisfied that World Vision was in a position to continue with its operations under the DAS regime with effect from the new year.  

     

    As an interim measure, Indiacast UTV Media was directed to restore the supply of its signals to World Vision on Rs 2 lakh on-account payment. 

     

    However, the Tribunal was informed by Indiacast counsel Shashank Shekhar that signals had not been restored as no payment had been made. 

     

    Shekhar also said no documents had been furnished to his client for making fresh arrangements for supply of signals in digital mode on a down-graded subscriber base.

  • TDSAT gives Maharashtra’s World Vision final chance to present case against Indiacast

    TDSAT gives Maharashtra’s World Vision final chance to present case against Indiacast

    NEW DELHI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has given World Vision Cable Network, Maharashtra, one final chance to present its case against Indiacast UTV Media Distribution on 10 February.

     

    Noting that no one had appeared in the hearing, TDSAT chairperson Aftab Alam and members Kuldip Singh and B B Srivastava said, “If no one appears on the next date, the petition may be dismissed for non-prosecution.”

     

    The Tribunal noted that it appeared that after filing the petition, World Vision had lost interest in the matter but listed the matter for next month “as an indulgence.”

     

    In the order of 14 December, 2015, the Tribunal had noted that World Vision’s area of operation was coming under the Digital Addressable System (DAS) regime from 1 January, 2016 and it was observed that any final order on the petition may be passed only after the Tribunal was satisfied that World Vision was in a position to continue with its operations under the DAS regime with effect from the new year.  

     

    As an interim measure, Indiacast UTV Media was directed to restore the supply of its signals to World Vision on Rs 2 lakh on-account payment. 

     

    However, the Tribunal was informed by Indiacast counsel Shashank Shekhar that signals had not been restored as no payment had been made. 

     

    Shekhar also said no documents had been furnished to his client for making fresh arrangements for supply of signals in digital mode on a down-graded subscriber base.