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Tag: GTPL HATHWAY

  • TRAI sends directive to 5 major MSOs for non-compliance of NTO provisions

    TRAI sends directive to 5 major MSOs for non-compliance of NTO provisions

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has directed five major multi system operators to comply with all provisions of its the new tariff order (NTO). After receiving scrutiny of the reply of earlier notice from the MSOs, TRAI found violation of rules of NTO.

    Following issues were found by the regulator for Induslnd Media and Communications Ltd   :

    ·         LCOs are not  providing  the itemised invoices to  the  consumers.  Some LCOs  are providing their  own  Cash memo bills.

    ·         Consumer portal provided by IMCL is not  working

    ·         IVRS facility of IMCL does not  have  any  provision for complaint registration.

    ·         LCOs without GST Registration are collecting tax  amount from  the  subscribers but not  depositing it.

    Following issues were found by the regulator for Hathway Digital:

    • Facility of Bill generation is available in LCO portal, but the customers are  not able  to get itemised billing in most cases even  after the request of the  subscriber,

    •LCOs without GST Registration are collecting tax  amount from  the  subscribers but  not  depositing it.

    Following issues were found by the regulator for GTPL Hathway:

    •IVRS facility of M/s GTPL Hathway Ltd.  does not  have provision for  complaint registration

    •The consumer portal of GTPL KCBPL has very  limited facilities. The facility ofupgradation and modifications in  subscription is  not  available on  consumer portal.

    •LCOs without GST Registration are  collecting tax  amount from  the  subscribers but not  depositing it.

    Following issues were found by the regulator for SITI Networks:

    •LCOs can  provide itemized invoices to consumers but most of the  LCOs are  not providing the  same. Some LCOs are  providing their own  cash memo bills;

    •IVRS facility of Siti  Networks Ltd.  does  not   have any  provision for  complaint registration.

    Following issues were found by the regulator for DEN networks:

    • LCO are  providing their own  cash memo bills  using card system for  payment receipts, while  the  subscribers are  not  able to get itemized bills

    • Facility of  upgradation  and  modification in  subscription is not   available on consumer portal.

    •LCOs without GST registration are  collecting tax  amount from  the  subscribers but  not  depositing it.

    All the MSOs have been directed to report compliance as per the new regulatory framework within seven days from the date of issue of this direction.

  • GTPL Hathway acquires SCOD18 Networking to expand footprint in Maharashtra

    GTPL Hathway acquires SCOD18 Networking to expand footprint in Maharashtra

    MUMBAI: Cable TV and broadband service provider GTPL Hathway has acquired 100 per cent shares of SCOD18 Networking Pvt Ltd on Monday. The company informed the exchanges about the acquisition in a filing on Tuesday.

    While the company has a strong presence in Gujarat, the acquisition has been done with an object of enhancing its footprint in neighboring state Maharashtra. SCOD18 which has now become wholly-owned subsidiary of GTPL Hathway, had a turnover of Rs 305.64 million as on 31 March.

    GTPL Hathway posted a net profit of Rs 29.4 crore for the quarter ended 30 June as against a net loss of Rs 28.1 crore in the trailing quarter ended 31 March. EBITDA was up 6 per cent at Rs 115.6 crore compared to Rs 103.6 crore in Q4 FY19.

  • GTPL cable TV business pushes revenue, profits up in Q1 2020

    GTPL cable TV business pushes revenue, profits up in Q1 2020

    BENGALURU: GTPL Hathway Ltd (GTPL) reported 31.9 percent growth in revenue for the quarter ended 30 June 2019 (Q1-2020, quarter or period under review) and almost three times the operating profit for its cable TV business (CATV business) as compared to the corresponding year ago quarter Q1 2019. The company’s consolidated  revenue from operations for the quarter under review grew 50 percent year on year (y-o-y) while consolidated total income expanded 30.3 percent in Q1 2020 as compared to Q1 2019. Consolidated profit after tax more than doubled (grew 164.3 percent) to Rs 33.23 crore in Q1 2020 as compared to Rs 12.57 crore in Q1 2019.

    GTPL reported consolidated revenue from operations at Rs 445.47 crore in Q1 2020 as compared to Rs  296.91 crore in Q1 2019. Consolidated total income for the period was Rs 454.30 crore as compared to Rs 296.91 crore in the corresponding year ago quarter. CATV business revenue was Rs 344.16 crore in Q1 2020 as compared to Rs 260.93 crore in Q1 2-19. CATV business reported operating result of Rs 30.49 crore for the period under review as compared to Rs 10.17 crore for Q1 2019.

    The company’s internet services business (Ex-EPC Project numbers) revenue grew 9.2 percent to Rs 39.29 crore in Q1 2020 from Rs 35.98 crore in Q1 2019. The segment incurred a small loss of Rs 0.14 crore in Q2 2020 as compared to an operating profit of Rs 2.40 crore in the corresponding year ago quarter. The company had been awarded Package B of the prestigious Bharat Net Phase-II project from the Gujarat Fibre Grid Network Ltd under Digital India Initiative (EPC Project) last year. GTPL reported revenue of Rs 62.02 crore an operating profit of Rs 2.89 crore from the EPC Project.

    GTPL reported revenue (Ex EPC Project) of Rs 391.1 crore, which was 29 percent more y-o-y. The company says in an earnings release that its CATV subscription revenue increased 47 percent y-o-y to Rs 247.2 crore. EBITDA Ex EPC Project increased 32 percent y-o-y to Rs 110.3 crore. Ex EPC Project PAT doubled to Rs 26.6 crore.

    On the operational front, GTPL says that it has seeded 200,000 STBs and added 300,000 digital paying subscribers in Q1 2020. The company says that it had 97 lakh (9.7 million, 0.97 crore) digital paying subscribers as on 30 June 2019. Phase-wise seeding as on June 30, 2019 for Phase 1, Phase 2, Phase 3 and Phase 4 were at 8.6 lakh (0.86 million, 0.086 crore); 22.6 lakh  (2.26 million, 0.226 crore); 30 lakh (3.00 million, 0.3 crore) and 35.8 lakh (3.58 million, 0.358 crore) respectively.

    Further, GTPL says that two thirds or 10,000 of the 15,000 new broadband internet subscribers were FTTX subscribers. Consumption per customer at 120 GB/month as on June 2019 was up from 38 GB/month in March 2017, or data consumption increased 3x over two years’ period.

    Company speak

    Commenting on performance, GTPL managing director Anirudhasinhji Jadeja said, “Q1FY20 was the first full quarter with New Tariff Order (NTO), which has led to significant growth in subscription revenue. Subscription revenue grew by 47percent on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry’s first dual service product ‘GTPL GIGAHD’ to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and broadband business in FY 2019 – 20.”

    Let us look at the other numbers reported by GTPL

    Consolidated total expenditure increased 42.7 percent during the quarter under review to Rs 403.99 crore from Rs 283.11 crore in Q1 2019. Pay channel cost in Q1 2020 increased 42.5 percent to Rs 180.17 crore from Rs 126.44 crore in the previous year. Other operational costs increased 2.7 percent to Rs 21.39 crore from Rs 20.83 crore.

    Employee benefits expense in Q1 2020 was almost flat (decreased 0.1 percent) to Rs 35.29 crore from Rs 35.32 crore in the correspond period of the previous fiscal. Finance costs reduced 20.7 percent during the querter under review to Rs 12.45 crore from Rs 15.70 crore. Other expenses in the period increased 29.8 percent to Rs 48.37 percent to Rs 37.26 crore in the corresponding quarter of the previous year.

  • GTPL Hathway consolidated Q1 FY20 PAT at Rs 294 mn, up 121 per cent y-o-y

    GTPL Hathway consolidated Q1 FY20 PAT at Rs 294 mn, up 121 per cent y-o-y

    MUMBAI: GTPL Hathway Ltd (GTPL), India’s leading digital cable TV and broadband service provider, today announced the financial results for the first quarter of financial year 2019–20, as approved by its board of directors.

    Commenting on performance, GTPL Hathway MD Anirudhasinhji Jadeja said, “Q1FY20 was the first full quarter with new tariff order (NTO), which has led to significant growth in subscription revenue.  Subscription revenue grew by 47  per cent on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry’s first dual service product ‘GTPL GIGAHD’ to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and Broadband business in FY 2019 – 20.“

    Q1 FY20 Consolidated Financial Performance Highlights (as per IND AS)

    • Revenue (ex. EPC) at Rs 3,911 million, up 29 per cent y-o-y

    • CATV subscription revenue at Rs 2,472 million, up 47 per cent y-o-y

    • Broadband revenue at Rs 393 million, up 9 per cent y-o-y

    • EBITDA (ex. EPC) at Rs 1,103 million; up 32 per cent y-o-y; EBITDA margin (ex. EPC) at 28.2 per cent up by 60 bps

    • Profit after tax (ex. EPC) at Rs 266 million; up 100 per cent y-o-y

    • Q1 FY20 EPC Contract revenue, EBITDA and PAT at Rs 632 million, Rs 52 Million and Rs 29 million

    respectively.

    Q1 FY20 Standalone Financial Performance Highlights (as per IND AS)

    • Revenue at (ex. EPC) Rs 2,538 million; up 27 per cent y-o-y.

    • CATV subscription revenue at Rs 1,631 million; up 45 per cent y-o-y.

    • EBITDA (ex. EPC) at Rs 745 million up 31 per cent y-o-y; EBITDA margin (ex. EPC) at 29.4 per cent up by 90 bps

    • Profit after tax (ex. EPC) came in at Rs 223 million; up 135 per cent y-o-y

    Business Performance Highlights

    CATV

    • GTPL seeded 200,000 STBs during first quarter FY20, taking total seeded STBs as on June 30, 2019

    to 9.70 million. Digital paying subscribers as on June 30, 2019 stood at 7.1 million, increased by

    300,000 mainly due to reactivation of service by existing subscribers.

    • Phase wise Seeded Boxes as on June 30, 2019 for Phase 1, Phase 2, Phase 3 and Phase 4 were at

    0.86 million, 2.26 million, 3.00 million and 3.58 million respectively.

    Broadband

    • During Q1 FY20, the company added 240,000 Home Pass. Home Pass as on June 30, 2019 stood

    at 2.66 million. ~50 per cent of Home pass are available for FTTX connections.

    • Added 15,000 net broadband subscribers during Q1 and 10,000 FTTX subscribers (67 per cent of net

    addition). Total subscribers as on June 30, 2019 were 340,000 of which 64,000 are FTTX

    subscribers.

    • The Broadband average revenue per user (ARPU) for Q1 FY20 was Rs 420.

  • Tata Sky favours multiple agencies for TV audience measurement

    Tata Sky favours multiple agencies for TV audience measurement

    MUMBAI: Tata Sky, one of the leading DTH operators in India has suggested Telecom Regulatory Authority of India (TRAI) that there should be multiple rating agencies. The competition will bring in new technologies and new methods in analysis.

    “Yes, multiple rating agencies need to be promoted. Competition will  bring in new technologies, new research methodologies, new methods in analysis, new and better ways to ensure better data quality,” Tata Sky has said in its submission to a consultation paper on TV audience measurement floated by TRAI.

    On the contrary, GTPL Hathway believes that there is no need for competition in the television rating services to ensure transparency and accuracy.

    “If more television ratings agencies are allowed to compete then the sample size will reduce and might even get scattered demographically. Therefore to ensure transparency and accuracy, there is no need for competition in the television rating services,” GTPL Hathway stated.

    The DTH player also commented that BARC India is not transparent regarding sharing the methodology and the representation of the panel home amongst the various platform types.

    Both Tata Sky and GTPL Hathway suggested that the BARC shareholding body should also include members representing the DPO/DTH/OTT platform body.

    To address the issue of panel tampering/infiltration, GTPL Hathway suggested to increase the sample size of the panel household significantly, which will reduce the impact of tampering on overall TV ratings, which in turn will reduce the temptation to tamper with the panel homes.

    Tata Sky argues that there is an under representation of DTH customers amongst the existing panel homes and BARC has taken no steps to publish a list for transparency. The representation of HD homes also needs correction.

    On the question whether BARC India should be permitted to provide raw level data to broadcasters, the MSO said, “We agree with TRAI’s view that release of raw data to broadcasters may potentially compromise on secrecy of households and sanctity of the data. The proposition that availability of raw data would help in giving the broadcaster sharper insights into viewership behavior is not sufficient to take such a huge security risk. There are other ways of sharper insights into viewership behavior such as AI."

    "Provisioning of raw level data to broadcasters will definitely contravene the policy guidelines for television rating agencies prescribed by MIB. The accreditation system mentioned by MIB requires secrecy of panel households, while release of raw data to broadcasters may potentially compromise secrecy of households", GTPL Hathway stated.

  • GTPL cable TV business revenue up; broadband business keeps afloat

    GTPL cable TV business revenue up; broadband business keeps afloat

    BENGALURU: Indian multi-system operator and internet service provider GTPL Hathway Ltd (GTPL) reported 12.6 percent increase in total income for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q3 2018. GTPL’s Total Income in Q3 2019 was Rs 319.91 crore, for the corresponding year ago quarter it was Rs 284.09 crore.

    GTPL has two segments – cable TV business and internet service. Every Indian broadband internet services provider has been hit by Jio. Reliance Jio Infocomm has made available low cost broadband internet services at a never before scale in India, unprecedented anywhere in the world. Most operators have been bleeding subscribers, and how! ARPUs have plummeted.

    GTPL’s internet service business has been reporting a steep decline in operating profits over the past few quarters. In Q3-2019, GTPL’s internet business was still profitable. And the company has reported that its internet subscriber base increased by 11,000 for the period under review, however at lower ARPU. For Q3 2019, internet business ARPU was Rs 430 as compared to Rs 487 in Q3 2018.

    GTPPL’s consolidated profit after tax (PAT) increased 3.1 percent y-o-y in Q3 2019 to Rs 19.72 crore from Rs 19.13 crore in Q3 2018. Consolidated total comprehensive income for the period increased 2.4 percent y-o-y to Rs 19.72 crore from Rs 19.26 crore. Consolidated operating profit (EBITDA) excluding other income was almost flat – it declined 0.8 percent y-o-y in Q3 2019 to Rs 77.89 crore (24.8 percent of operating or op revenue) from Rs 78.53 crore (27.8 percent of op revenue) in the corresponding quarter of the previous fiscal.

    Segment Performance

    Cable TV business operating result increased 20.1 percent y-o-y to Rs 19.35 crore in Q3 2019 from Rs 816.11 crore in the corresponding quarter of the previous year. Operating revenue of GTPL’s cable TV business increased 14.7 percent y-o-y to Rs 278.06 crore from Rs 242.4 crore.

     GTPL’s TV business added 2,00,000 CATV digital subscribers in Q3 2019, 1,70,000 of which it says were paying subscribers. The company says that it had seeded 3,00,000 set-top boxes during the quarter under review. In all GTPL says that it seeded 0.95 crore STBs, of which 0.8 crore were active and 0.745 crore were digital paying subscribers as of 31 December 2018. GTPL’s largest subscriber base is in phase IV areas. Digital paying subscriber bases for phases I, II, III and IV were 0.066 crore, 0.169 crore, 0.226 crore and 0.283 crore respectively. ARPUs remained flat y-o-y across all the four DAS phases. ARPUs net of taxes for phases I, II, III and IV were Rs 103, Rs 102, Rs 67 and Rs 60 respectively.

    GTPL’s internet business operating revenue in Q3 2019 was almost flat – it increased 1.1 percent y-o-y to Rs 36.44 crore from Rs 36.03 crore. Internet service segment’s operating results for Q3 2019 declined by 87.9 percent y-o-y to just Rs 0.37 crore from Rs 3.03 crore in the corresponding quarter of the previous year.

    GTPL says in a press release that during the quarter, it was appointed as Project Implementation Agency (PIA) of Package B for implementation of BharatNet Phase – II Project in the state of Gujarat by Gujarat Fibre Grid Network Limited (GFGNL). The company says that the project is worth Rs 1,245.77 crore. The project is on EPC bases and includes survey, design, plan, execution with active/passive (OSP + Electronics) components with commissioning of complete network.

    Let us look at the other numbers reported by GTPL Hathway

    Consolidated total expenditure increased 16.3 percent y-o-y during the quarter under review to Rs 289.05 crore from Rs 248.59 crore in Q3 2018. Pay channel cost in Q3 2019 increased 26.5 percent y-o-y to Rs 137.72 crore from Rs 108.90 crore in the corresponding quarter of the previous year. Other operational costs reduced 16.5 percent y-o-y in Q3 2019 to Rs 23.99 crore from Rs 20.64 crore in Q3 2018.

    Employee benefits expense in Q3 2019 increased 18.9 percent y-o-y to Rs 37.63 crore from Rs 31.64 crore in the corresponding quarter of the previous fiscal. Finance costs reduced 20 percent y-o-y during the quarter under review to Rs 5.86 crore from Rs 7.32 crore. Other expenses in the period reduced 3.7 percent y-o-y to Rs 37.28 crore in Q3 2019 from Rs 38.72 crore in the corresponding quarter of the previous year.

    Company Speak

    GTPL Hathway managing director Anirudhasinhji Jadeja said in a press release, “In an environment of uncertainty, GTPL Hathway has continued to post steady performance. Our first 9 month revenue and PAT are up by 14 percent and 10 percent respectively; reflecting inherent strength of the company’s offerings and quality customer service. The new tariff order has put customers at the centre of the business; providing them freedom to make their own choices. As India’s one of the leading MSOs, we expect higher monetisation across the phases and better transparency as a direct fall out of the new order.”

  • GTPL cable TV business revenue up in second quarter

    GTPL cable TV business revenue up in second quarter

    BENGALURU: Indian multi-system operator and internet service provider GTPL Hathway Ltd (GTPL) reported 13.8 percent increase in total income for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y) Q2 2018. GTPL’s Total Income in Q1 2019 was Rs 317.40 crore, for the corresponding year ago quarter it was Rs 278.88 crore.

    GTPL has two segments – cable TV business and internet service. Cable TV business operating result increased 82.1 percent y-o-y to Rs 15.99 crore in Q2 2019 from Rs 8.78 crore in the corresponding quarter of the previous year. Operating revenue of GTPL’s cable TV business increased 15.6 percent y-o-y to Rs 276.69 crore from Rs 239.32 crore.

    GTPL’s unternet service operating revenue in Q2 2019 was almost flat – it increased 0.3 percent y-o-y to Rs 35.75 crore from Rs 35.64 crore. Internet service segment’s operating results for Q2 2019 declined by 99.6 percent y-o-y to just Rs 0.01 crore from Rs 3.67 crore in the corresponding quarter of the previous year.

    GTPL’s consolidated profit after tax (PAT) increased 28.5 percent y-o-y in Q2 2019 to Rs 16.01 crore from Rs 12.45 crore in Q2 2018. Consolidated total comprehensive income for the period increased 33.8 percent y-o-y to Rs 16.79 crore from Rs 12.55 crore. Consolidated operating profit (EBITDA) excluding other income increased 11.5 percent y-o-y in Q2 2019 to Rs 85.20 crore (27.3 percent of operating or op revenue) from Rs 76.39 crore (27.8 percent of op revenue) in the corresponding quarter of the previous fiscal.

    Let us look at the other numbers reported by GTPL Hathway

    Consolidated total expenditure increased 15.7 percent y-o-y during the quarter under review to Rs 294.74 crore from Rs 254.81 crore in Q2 2018. Pay channel cost in Q2 2019 increased 20.4 percent y-o-y to Rs 132.33 crore from Rs 109.89 crore in the corresponding quarter of the previous year. Other operational costs reduced 10.6 percent y-o-y in Q2 2019 to Rs 20.98 crore from Rs 23.46 crore in Q2 2018.

    Employee benefits expense in Q2 2019 increased 9.5 percent y-o-y to Rs 35.81 crore from Rs 32.70 crore in the corresponding quarter of the previous fiscal. Finance costs increased 68.8 percent y-o-y during the quarter under review to Rs 17.91 crore from Rs 10.61 crore. Other expenses in the period increased 17.2 percent y-o-y to Rs 38.12 percent in Q2 2019 from Rs 32.52 crore in the corresponding quarter of the previous year.

  • Nokia partners GTPL for broadband deal

    Nokia partners GTPL for broadband deal

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

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

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

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

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

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

  • Mukesh Ambani’s RIL announces acquisition of majority stake in Hathway & DEN Networks

    Mukesh Ambani’s RIL announces acquisition of majority stake in Hathway & DEN Networks

    MUMBAI: Reliance Industries today announced strategic investments of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs. 245 crore from the existing promoters for a 66 per cent stake in Den Networks Limited (DEN) and Rs 2,940 crore for a 51.3 per cent stake in Hathway Cable and Datacom Limited.

    RIL is also planning to make open offers in DEN and Hathway as well as GTPL Hathway a company jointly controlled by Hathway with 37.3 per cent stake and Hathway Bhawani Cabletel and Datacomm Limited, a subsidiary of Hathway under SEBI Takeover Regulations.

    Through this transaction, Reliance and Jio will be strengthening the 27,000 LCOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India  through  (a) access  to  superior  back-end  infrastructure;  (b) tie-ups  with  content producers; (c) access to latest business platforms to improve business efficiencies and deliver customer experience; and (d) investment in digital infrastructure for connecting customers. And the LCOs will continue to do what they do best – provide localized, intimate, people-friendly and ultra-fast customer services. This will create multiple future opportunities for LCOs as Jio rolls out new services and platforms.

    These investments and the creation of the digital eco-system will open up new channels for content monetization. This will lead to exponential growth for the content producers and broadcasters.

    These investments will help in accelerating the march towards Digital India. Reliance will ensure compliance with all the regulatory and statutory requirements at all times and works towards systematic growth of the sector.

    Jio has already started work on connecting 50 million homes across 1,100 cities. It will work together with Hathway and DEN and all the LCOs to offer a quick and affordable upgrade to a world-class lineup of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities. This will accelerate Jio’s commitment to connect 50 million homes with JioGigaFiber in the shortest possible time.

    RIL chairman and MD Mukesh D. Ambani said, “We are glad to join hands with Shri Rajan Raheja and Shri Sameer Manchanda, two of the pioneers in the MSO industry. Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the eco-system.

    With Local Cable Operators now as part of the Jio ecosystem, we look forward to bringing Jio’s advanced JioGigaFiber and Smart Home Solutions to more Indian homes, even quicker. We look forward to welcoming other MSOs and LCOs to be part of this partnership. This will result in growing wireline data connectivity in India and making state-of-the-art high- speed affordable internet and digital services accessible to the widest population in the shortest possible time.”

  • GTPL Hathway to promote 40 Mbps broadband speed to masses

    GTPL Hathway to promote 40 Mbps broadband speed to masses

    MUMBAI: As wireline broadband business is emerging as a sector full of growth opportunities, several cable operators, as well as MSOs, are increasing their investment in the segment. GTPL Hathway, the Gujarat based cable and broadband player, is ready to lower its ARPU in the broadband segment to get more customers. Reliance Jio’s entry has got companies worried about losing subscribers and many of them are revising prices while others are ready to lower subscription costs.

    GTPL Hathway’s capex allocation shows the increased importance of broadband business for the company. While in Q1 2019, the capex stood at Rs 21 crore (almost equal to Rs 24 crore capex for cable TV business), in Q4 FY 2018 Rs 8 crore was the broadband capex. For entire FY 2019, the company will invest Rs 50-60 crore on broadband.

    The company’s plan is to make 40 Mbps a mass product for which the ARPU stands at Rs 388 to Rs 450 per month. One of the main reasons for emphasising on this particular range is to control churn rate of subscribers as attracting more customers with high speed and high volume will make a loyal user base. Churn is happening more on the side of lower speed, where the company is providing 5 Mbps or 8 Mbps speed due to the wireless competition. Even for the 40 Mbps plan, the cost has already come down.

    “We are pushing this (40 Mbps) for mass, so we are looking forward that the numbers will start coming from this quarter and next quarter we will see a surge in the number,” chief strategy officer Piyush Pankaj commented on the broadband segment revenue in an earnings call. The company has targetted broadband revenue for this financial year to be at Rs 160-170 crore.

    Though overall the company witnessed only 10,000 new broadband subscriber addition despite creating 230,000 home passes, its logic revolves around the basic formula of supply and demand. “In this quarter if you see our FTTH implementation on the ground for the home pass is around 65-70 per cent complete and then you see the home pass is increased,” Pankaj added. According to company guidance, it is going to add around 100,000 net subscribers this year.

    The Jio rampage is likely to cause havoc in the broadband sector too. Pankaj said that the company is waiting for other players to come into the market with new pricing to make any decision on whether or not to scale down investment. For now, the capex guidance for broadband business would remain same.

    “The decision like investment in broadband cannot be based on one quarter pricing of any particular player. We expect the market to expand considerably,” GTPL Hathway chairman and non-executive director Rajan Gupta said.

    While GTPL has a huge fibre network available in Gujarat, it is not rolling out fibre to home or building because of low demand. There is a very limited demand for 100mbps and 40mbps in those markets.

    “With large players coming in investing there and that is where is the whole demand will build up and GTPL already has a huge infra, so pricing is one play, but more than pricing it is about revenue from a particular area and the overall size of the pie. Frankly, there are multiple factors needs to be evaluated, which will be clearer over the next two to three quarters,” Gupta added.

    In terms of its traditional cable business, the company expects phase three and phase four ARPU increase in this quarter and next quarter while phase one and phase two ARPU increased in the last quarter.

    “For phase two we are going to take the hike (10 per cent hike) in Q4 of FY 2019. Phases three and phase four we have already taken the hike in Q2 that is from July onwards,” Pankaj said. “Current Q1 ARPU we will see the 10 per cent jump for phases three and four, but you will see the full 10 per cent increase in two quarters’ time in Q2 and Q3,” he added further.

    Though the company had Rs 126 crore content cost in Q1, it is now confident that it won’t exceed Rs 500-510 crore until some big acquisition happens. However, the company has indicated it is looking forward to some of the acquisitions which could increase the content cost further as well as the revenue.