Tag: Hathway Cable

Hathway Cable’s Jagdish Kumar Pillai resigns as director of JV Hathway Bhawani

MUMBAI: Mumbai-based multi-system operator (MSO) Hathway Bhawani Cabletel & Datacom has appointed Samson Jesudas as the company’s joint managing director.

Also, Hathway Cable & Datacom CEO Jagdish Kumar Pillai has resigned as director of Hathway Bhawani. Hathway Cable & Datacom is a joint venture partner in Hathway Bhawani.

“It is an operational decision. Bhawani is a small entity and with Jagdish being involved in a number of issues, this seemed the right decision,” says an official from Hathway Cable & Datacom.

The changes will take place immediately. “The board has already approved it. Now we are inviting the stakeholders to approve the appointment of Jesudas as the joint managing director,” he adds.

Jesudas has been appointed as the joint MD for a period of three years, till 2017. “Jesudas is an old hand and he seemed to be the right choice,” the Hathway official feels.

March 15, 2014
Cricket Packs could become universal

MUMBAI: Digitisation is set to change the way television channels are packaged. In addition to the subscriber getting the option to pick and choose channels, multi-system operators too are finding newer opportunities.

MSOs have found a good business prospect in cricket, the most-watched sport in India.

With digitisation of cable TV services in 42 major cities, MSOs are increasingly shifting to per subscriber deals with broadcasters instead of making bulk payments.

Hathway Cable & Datacom, like direct-to-home television service provider Dish TV, has carved out a Cricket Pack for its subscribers.

In the case of Dish TV’s India cricket pack, the channel on which live telecast of a match involving Indian men’s cricket team is switched on.

“Sports channels, by the nature of its programming are event driven. We have an Indian Cricket Pack, which is a cost per subscriber deal with broadcasters,” says Hathway Cable CEO Jagdish Kumar.

More MSOs are likely to follow suit and offer Cricket Packs to their customers.

“Though right now we have entered into a per set top box deal with the sports channel broadcasters, we may also look at Indian Cricket Pack going forward,” informs SitiCable COO Anil Malhotra.

There are three types of commercial arrangements entered between broadcasters and operators. These are: Fixed deal, in which the operator pays a lump sum amount to the broadcaster; Reference Interconnect Offer, in which operator takes channels based on the choice of the subscribers; and on a per set top box deal, in which the operator shares details of the number of STBs installed with the broadcaster and the number of the subscribers subscribing to a sports channel.

DEN Networks is currently on a fixed deal with the sports broadcasters. “We are still asking for lump sum because of cash flow issues,” informs DEN Networks CEO SN Sharma.

While till last year, broadcasters were entering into fixed deals with operators, “now everybody is moving towards cost per subscriber,” adds Sharma.

When questioned if DEN would also offer Indian Cricket Pack, Sharma says, “Let’s see. Different experiments are happening. With time everything will evolve.”

According to GTPL Hathway COO Shaji Mathews, broadcasters are entering into fixed deals or negotiate a per subscriber rate.

“The per subscriber deal has clauses which say that the operator needs to show a minimum number of subscribers who subscribe to the channels,” he says.

Currently, GTPL Hathway has a fixed fee deal with the sports broadcasters.

“The moment we get into a la carte, the rates are really high and if we get into cost per subscriber, unless we guarantee a certain number of subscribers for the channel, the cost per subscriber is also high. So, in fact on fixed deal, we land up paying less because of the fee structuring,” he says.

GTPL Hathway may also move to Indian Cricket Pack. “We are looking at that as well,” he says.

It makes business sense for channel distributors to create cricket packs. But Increasing inclination towards cricket packs would mean predominantly cricket channels would gain at the cost of those with less or absolutely no cricket content.

March 1, 2014
TRAI-MSO to meet on 16 Dec to assess CAF

MUMBAI: The Telecom Regulatory Authority of India (TRAI) has called for a national multi-system operator (MSO) meeting on Monday, 16 December. The meeting has been called to assess the report on collection of consumer application forms (CAFs) in the 38 cities falling in Digital Addressable System (DAS) phase II.

Earlier, on 29 November, TRAI had met all the MSOs and had set 15 December as the deadline for submitting 100 per cent CAFs.

We had to submit the CAFs, including subscriber details and package details by 15 December. TRAI has called for the meeting to assess the situation says SN Sharma

“We had to submit the CAFs, including subscriber details and package details by 15 December. TRAI has called for the meeting to assess the situation. It is a follow-up of the meeting we had earlier with the regulator,” says DEN Networks CEO SN Sharma.

The regulator has called for the meeting to review the progress made in the DAS phase II areas. “Though in the last meeting, we had asked for a one month extension to complete CAF, the regulator had given clear directions to complete CAFs in the specified period of 15 days,” adds Hathway Cable & Datacom MD and CEO Jagdish Kumar G. Pillai.

The MSOs are struggling to meet the deadline. “Our national average for CAF is around 65 per cent. While in a few areas we have achieved 90 per cent CAF, there are also areas like Hyderabad where we have still not collected any CAF,” informs Pillai, who thinks that the collection can improve only if the Information & Broadcast Ministry announces Greater Hyderabad Municipal Corporation (GHMC) as DAS area.

In the meeting held on 29 November, it was revealed that Gujarat Telelink Pvt Ltd (GTPL) is lagging behind in areas like Vizag and Solapur, Hathway is far behind in Vizag and Hyderabad and Den Networks had a low CAF collection in Uttar Pradesh. “We have achieved 80 per cent CAF in Gujarat, while catching up in other areas,” informs GTPL COO Shaji Mathews.

Though in the last meeting, we had asked for a one month extension to complete CAF, the regulator had given clear directions to complete CAFs in the specified period of 15 days, says Jagdish Kumar Pillai

The court cases related to the digitisation process that were on till quite some time in states like Madhya Pradesh, Andhra Pradesh and Gujarat have acted as a hindrance to smooth CAF collection, think the MSOs. “Digitisation in Vizag began only in September, so it will take more time for the MSOs to submit 100 per cent CAF there. Also, we are facing issues in Gujarat,” adds Mathews.

The Gujarat Cable Operators Association has moved to the Gujarat High Court against TRAI and the case is pending in the court. “We will have to see if the TRAI gives us reprieve for customers who fall under these cable operators. If it doesn’t, then we may have to switch off signals, which will then be against court order. The situation is tricky in Gujarat and we are waiting for what the regulator has to say in the meeting,” says Mathews.

We will have to wait and watch if TRAI comes up with another extension or penal action for non-compliance! MSOs await the meeting.

December 14, 2013
TRAI orders MSOs to deliver RIOs; tariff packages

MUMBAI: The fear of Friday the thirteenth seems to be coming true for registered multi system operators (MSOs) as the Telecom Regulatory Authority of India (TRAI) has come out with two different directions for them today. And it has warned them that it is time for the stakeholders to buck up and act fast.

The first direction issued today gives 118 registered MSOs just 10 days to submit their interconnection agreements entered with the broadcasters for re-transmission of channels on their cable networks in the Digital Addressable System (DAS) notified areas. Another direction, gives them seven days to submit the details of tariff packages along with the terms and conditions for supply and installation of the set top box (STB) to their subscribers.

Of the 118 MSOs, a few well-known names that feature in the list are: Siti Cable Network, Seven Star Dot Com, Sagar E Technologies, Ortel Communication, Manthan Broadband, JAK Communications, IMCL, Hathway Cable & Datacom and Den Networks amongst others.

“Every MSO, according to the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) and regulation 5, 8 & 9 of the Telecommunication (Broadcasting and Cable Services) Interconnection (Digital Addressable Cable Television Systems) Regulation, 2012 (No. 9 of 2012), is required to have such interconnection agreement in DAS areas,” states the TRAI direction regarding interconnect agreement.

According to regulation 5, it is mandatory for pay channel broadcasters to reduce the terms and conditions of the interconnection agreement into writing and deprive MSOs of their TV channel signals if no interconnect agreement is signed. Also, as per regulation 9, MSOs need to submit their interconnect agreement within the specified period to the authority.

The TRAI direction had earlier said: “Every existing MSO shall submit to the authority by 31 July, 2012, all interconnect agreements entered into and amendments made therein prior to the date of notification of these regulations.”

Regulation 8 gives power to the authority to intervene, inter alia, to protect the interest of the consumer and service provider. “The authority may, in order to protect the interest of the consumer or service provider or to promote and ensure orderly growth of the broadcasting and cable sector or for monitoring and ensuring compliance of these regulations, by order or direction, intervene, from time to time,” says the TRAI direction.

With none of the MSOs so far caring to submit the tariff packages along with terms and conditions for supply and installations of STBs to their subscribers despite being ordered to do so under the Telecommunication (Broadcasting and Cable) Services (fifth) (Digital Addressable Cable TV Systems) Tariff Order, 2013 (No. 1 of 2013) issued on 27 May, the regulator has now cracked the whip on them to follow it and submit the packages within seven days from today.

It is to be noted that clause 5 of the tariff order states that every MSO has to report to the authority by 15 June 2013, the details of all the tariff packages and other terms and conditions for supply and installation of the STBs. According to this order, “Any change in the tariff package reported under sub-clause (1) and the introduction of a new tariff package for supply and installation of STB shall be reported to the authority at least seven days prior to such change or introduction, as the case may be.”

December 13, 2013
Hathway promotes Milind Karnik

MUMBAI: For long, Hathway Cable & Datacom old-timer Milind Karnik has been mandated with running the cable TV MSO’s secretarial operations as company secretary. Now he has been given a new role: as the head of commercial – all India and also the western India head. Karnik has been with Hathway since 1998 and he has resigned from his earlier position to take up the post, Hathway informed the BSE on 6 December. Replacing him is Ajay Singh, who has been appointed as company secretary and compliance officer.

Singh has an experience of 17 years. He has moved to Hathway from Real Networks India. Prior to this, Singh has worked with Drishtee Dot Com, Rangs Technologies and PACL India.

While Karnik was already handling the commercial business in the western region, in his new role, he will be handling the all India commercial business for Hathway.

“With digitisation, one needs to get the consumer billing and consumer application form in place for phase I and II respectively. This is a huge task. Also, in my new role, I will be working towards successfully completing phase III and phase IV of digitisation in western India,” informs Karnik, who plans to focus more on DAS phase III and IV now.

Karnik will work with Hathway subsidiaries including Hathway Bhawani and Hathway Rajesh as well. He will serve on the GTPL Hathway board.

Karnik will also handle commercial business in hotels which has a different tariff structure. “Hotels are still not digitised and so I will be concentrating on that as well. We need to explain to the 3-Star and 5-Star properties where room base is 50 and above that digital feed is better than analogue,” he says.

“In the case of hotels, we also aim to focus on pay per view, which is a niche segment. That apart, I will be dealing with internet bandwidth in the commercial segment,” he concludes.

December 11, 2013
MSOs miss 15 November CAF deadline

MUMBAI: Multi system operators (MSOs) have bought themselves some more time to collect duly filled consumer application forms (CAF) from cable subscribers across 38 cities falling under DAS phase II.

The earlier deadline for CAF collection was today, that is, 15 November, and consumers failing to comply would have had their transmission cut off, even after possessing set top boxes. However, as learnt from several sources in the industry, MSOs failed to meet the timeline and are now seeking further extension.

While a few MSOs including Hathway Cable & Datacom have extended the deadline to 20 November, smaller Kolkata-based MSOs say the procedure will be complete by 23 November.

It was the Telecom Regulatory Authority of India (TRAI) that had previously extended the original deadline from 20 September to 15 November. When contacted, TRAI principal advisor N Parameswaran said considering it was a national holiday today, “any decision on the final date would be taken only on 18 November.”

“The MSOs have voluntarily decided to extend the date to 20 November,” informed Maharashtra Cable Operators Federation (MCOF) president Arvind Prabhoo, adding that the regulator had asked the MSOs to send a review of DAS phase I, covering points like billing and CAF, in the interim.

Kolkata-based Manthan and Siti Cable confirmed that they have achieved 100 per cent CAF collection whereas the Cable Operators Digitalisation Committee of the Association of Cable Operators convener Swapan Chowdhury said a 100 per cent CAF was impossible to achieve in the City of Joy with so many festivities. “We have increased the deadline for duly filled CAF to 23 November,” he said.

Cable Operators Federation of India president Roop Sharma opined that CAF collection is a difficult task at hand for operators.

“Considering that the broadcasters have not yet declared the rates for the channels, it is difficult for the consumer to decide which ones they want to subscribe,” she said.
Clearly, we have not heard of the last of CAFs, phase II – as yet.

November 15, 2013
Hathway Broadband launches Docsis 3.0 Ultra High speed network

MUMBAI: Hathway Cable and Datacom, the largest cable broadband company in India, has launched the Docsis 3.0 ultra High speed network. Docsis 3.0 is a widely deployed technology and is the dominant technology powering leading Broadband markets like USA, Korea and Europe. Docsis 3.0 is capable of delivering speeds upto 1 Gigabit.

We are the first Company to launch a Docsis 3.0 network in the country,” said Hathway Cable & Datacom MD & CEO Jagdish Kumar. “With our Docsis 3.0 network supplied by Cisco we are ready to deliver Ultra High Speed Broadband upto 50 Mbps to every retail customer in South Mumbai. We see Broadband as a key part of our business portfolio and we will soon be launching the Docsis 3.0 networks in other parts of the country. We are enabling our network for delivering a superior HD video experience on our Cable TV as well as on Broadband.”

Hathway Broadband business head Kunal Ramteke added, “True High speed retail Broadband delivered on Docsis 3.0 will be a game changer in the market. In today’s video led internet consumption these speeds are absolutely vital for a superior consumer experience. The south Mumbai customers will be able to enjoy YouTube in HD and lightning fast responses in internet gaming. TV is also being consumed across multiple screens. With our new Docsis 3.0 plans starting at Rs 599 you will not break the bank to start enjoying these benefits.”

Cisco service provider software solutions VP – sales Sue Taylor said, “Cisco is excited to be playing a crucial role in shaping this industry and leading it to a transformative stage with technology. Hathway has been a pioneer in its willingness to adopt technology that benefits its subscribers and we congratulate them on this important milestone.”

To cater to this demanding high speed segment, Hathway will also be launching a dedicated Service Desk exclusively for the Docsis 3.0 customers. These desks will have fully trained staff to handle any service requirements pertaining to High speed internet access through multiple devices. Hathway is also geared to deliver 99.9 per cent network availability and service issue resolution within 24 hours recognising the criticality of a high speed connection in the connected world of today.

Hathway Docsis 3.0 plans start from monthly Rs 599 and go upto Rs 1499 for the 50 Mbps plan which offers 50 GB of download data.
The network is initially being deployed in south Mumbai and has been extensively tested. All existing and new customers of Hathway Broadband in south Mumbai can upgrade to the Docsis 3.0 plans. The customers will be provided a Docsis 3.0 Modem by Hathway which will be capable of supporting the Ultra High Speed Plans.

October 7, 2013
Hathway EBITDA more than triples in Q1-2014 as compared to Q1-2013

BENGALURU: Indian Multi Systems Operator (MSO) Hathway Cable & Datacom Limited (Hathway) reported EBITDA (including other income) of Rs 77.04 crore for Q1-2014, more than three times (3.23 times) the Rs 23.84 crore for Q1-2013, but 14 per cent lower than the EBITDA of Rs 88.47 crore for Q4-2013.

NOTE: As per Hathway management’s estimates, EBITDA inclusive of Hathway’s economic interest in the EBITDA of its several subsidiaries/JVs/associate companies would aggregate to about Rs 96.0 crore for Q1-2014.

Let us look at Hathway’s other figures for Q1-2014

Hathway reported a total income from operations of Rs 232.65 crore in Q1-2014 which was 70.74 per cent higher than the Rs 132.26 crore in Q1-2013 and almost flat (just 0.64 per cent more) income as compared to the Rs 231.18 crore for Q4-2013.

Hathway’s expense for Q1-2014 at Rs 156.56 crore was 39.14 per cent more than the Rs 112.42 crore for Q1-2013 and 9.7 per cent more than the Rs 142.71 crore for Q4-2013. Hathway’s purchase of stock in trade in Q1-2014 at Rs 0.67 crore was one fifth (5.075 times less) the Rs 3.4 crore in Q1-2013 and only about 41 per cent of the Rs 1.63 crore for Q4-2013.

Staff cost of Rs 13.77 crore for Q1-2014 was 35.53 per cent higher than the Rs 10.16 crore in Q1-2013 and 31.02 per cent higher than the Rs 10.51 crore for Q4-2013.

Paycost of Rs 58.45 crore for Q1-2014 was 50.22 per cent more than the Rs 38.91 crore for Q1-2013 and 18.08 per cent more than the Rs 49.5 crore for Q4-2013.

Other expense at Rs 83.67 crore for Q1-2014 was 39.57 per cent more than the Rs 59.95 crore for the corresponding quarter of the previous year (Q1-2013) and 3.2 per cent more than the Rs 81.06 crore for the immediate preceding quarter (Q4-2013).

PAT for Q1-2014 at Rs 5.32 crore was however less than one fifth the PAT of Rs 28.27 crore for Q4-2013. In Q4-2013, Hathway had a foreign exchange gain of Rs 5.73 crore, while in Q1-2014; it had incurred a foreign exchange loss of Rs 8.32 crore. Finance cost at Rs 21.61 crore for Q1-2014 was 53.6 per cent more than the Rs 14.07 crore in Q4-2013 and 62 per cent more than the Rs 13.32 crore for Q1-2013.

For Q1-2013, Hathway had reported a loss of Rs (-15.87) crore. The foreign exchange loss incurred by Hathway in Q1-2013 was Rs 4.56 crore.

Hathway’s income from operations mainly consists of subscription income from cable TV and broadband business, carriage and placement income, advertisement income, activation income from STB’s and other operating income.

Hathway says that it continued to deploy STBs in Q1-2014 and as of June, 2013 along with its JV partners had cumulatively deployed over 0.7 crore STBs all over India and approximately 0.18 crore STBs in Q1-2014. The company says that it has deployed approximately 0.25 crore STBs in Phase I and approximately 0.41 crore STBs in Phase II areas till June 2013, which it says, makes it the biggest MSO in Phase I and II areas.

Hathway informs that it has adequate STBs in hand and continues to roll out its services in major Phase III and IV towns.

Hathway further says that as per MIB (Ministry of Information and Broadcasting, Government of India) reports cable television is clearly the preferred choice in Phase II cities also with a near 90 per cent share of digital STBs seeded after 15 February 2013 being seeded by cable MSOs.

In its broadband update Hathway states that the gross additions to its broadband subscriber base was around 27,000 for the Q1-2014. Hathway’s cumulative subscriber base stood at approximately 4,24,000. As on end June 2013, the company says that it has tested its DOCSIS 3 technology for its broadband subscribers in certain cities. With DAS being successfully implemented Hathway expects to increase its broadband customer base with bundled schemes that it plans to offer shortly at competitive rates.

Hathway says that it is in the process of raising funds to the tune of Rs 149.8 crore from its promoters and new shareholders through preferential allotment. The shares of face value Rs10 each are to be issued at a premium of Rs 274 per share (adding up to Rs 284 per share).

August 12, 2013
Hathway Cable seeks shareholder nod to enhance borrowing limits

MUMBAI: Being one of the first movers in the cable TV industry, the Rajan Raheja group promoted Hathway Cable & Datacom, has been aggressively pushing the agenda of digital addressable systems (DAS) nationally. And its aggressive digitisation drive means it has to have oodles of cash when it needs it.

And it is taking steps to ensure that its pockets are bulging with cash. The cable giant earlier this week informed the bourses about it seeking an approval from its shareholders in order to raise the borrowing limits.

Hathway leads the Rs 37,000 crore Indian television industry with a handsome 23.5 per cent market share across 140 cities with over 71 analogue and 20 digital head ends across India.

In light of its great potential in installing set top boxes in subscriber homes, and also considering the effective implementation of the broadband initiatives, the Hathway directors considered it savvy to extend their current borrowing limit of Rs 1,200 crore to Rs 1,400 crore. Earlier this year (25 February 2013) Hathway‘s board had got its shareholders‘ nod (through postal ballot) to enhance its borrowing limit to Rs 1,200 crore but deeming it insufficient, it has once again asked to increase it by Rs 200 crore.

As per section 293(1) (d) of the Companies Act, 1956, the power of the board of directors to borrow money(s) in excess of the aggregate of the paid-up capital and free reserves of the company, requires an approval from the shareholders of the company.

Apart from seeking an approval on an ordinary resolution for increasing the borrowings limits of the company, the BOD also seeks the shareholder‘s affirmation for bestowing the powers upon the BOD to create a charge/hypothecation/mortgage on the movable/immovable properties of the company for securing the borrowings of the company as it may consider fit.

The deadline for the postal ballot has been dated 22 July 2013, before which the shareholders must return the form attached with the self addressed postage prepaid envelope to the scrutiniser. The alternate medium available is through the e-voting platform provided by the company.

June 29, 2013
DAS Phase II: Indiacast-Hathway- GTPL slugfest on DAS deals

MUMBAI: A war of sorts has broken out between India‘s second largest content aggregator IndiaCast Media Distribution and Hathway Cable and Datacom, the country‘s biggest Multi System Operator (MSO) and its affiliate GTPL, Gujarat‘s largest MSO with footprints in other states too.

This is happening at a time when the entire broadcast and cable TV industry and government have been grappling with how to deal with the Phase II digitisation (DAS) of India‘s cable TV. And it clearly reveals how much more needs to be done to make the government‘s agenda to professionalise and spruce up India‘s cable TV sector a reality. (MIB wants MSOs-b‘casters to sign DAS agreements within 15 days )

Now on to the problem between IndiaCasat and GTPL and Hathway. Both Hathway and GTPL have switched off IndiaCast channels in multiple markets across India including Gujarat, Maharashtra, West Bengal, and Madhya Pradesh as the latter is demanding a reduction in carriage fee and growth in subscription fee.

IndiaCast distributes 35 channels from the TV18, Viacom18, Disney UTV and A+E Networks spanning across Hindi general entertainment, news, kids, youth and regional genre.

Hathway, on the other hand, has cable operations that straddle across key Indian geographies and offers cable television services across 140 cities and towns.

However, Hathway and GTPL feel IndiaCast‘s demand is unjustified. Their contention is that the time is not ripe for a carriage fee reduction or an increase in subscription fee payouts as they have hardly started collecting money from the ground.

IndiaCast though feels that its demand is justified as the analog cable TV networks around the country are being digitised in a phased manner which will lead to broadcasters getting their fair share of subscription revenue due to transparency in subscriber base of LCOs.

The content aggregator alleges that both Hathway and GTPL want to maintain status quo by doing deals similar to that in the analogue era. According to IndiaCast, the two MSOs also want to revisit phase I deals which were done on cost-per-subscriber basis.

Hathway Cable and Datacom MD and CEO Jagdish Kumar feels the broadcasters‘s maw is increasing and they are unwilling to support the MSOs in this transition phase.

“Broadcasters have become too greedy. They are behaving like ostriches. They want a reduction in carriage fee and a growth in subscription revenue. Reduction of carriage fee is not going to happen overnight. As far as growth in subscription revenue goes, the MSOs themselves have not started collecting money from the ground,” thunders Kumar.

Kumar‘s suggestion to broadcasters is to do “equitable” deals till the situation on the ground stabilises particularly since the MSOs have made large investments in making digitisation a reality.

“We also have to look at returns on the investments that we have made so far,” adds Kumar.

The dispute that began end of December has reached the sector regulator‘s door. The Telecom Regulatory Authority of India (Trai) has asked GTPL to respond by 10 April to a complaint filed by IndiaCast alleging abuse of its dominant position in Gujarat.

Says IndiaCast COO Gaurav Gandhi, “GTPL‘s intention is to use these coercive methods on broadcasters and aggregators to pressurise them to keep DAS deals in line with what was there in the analogue regime – at any cost they don‘t want a reduction in their carriage income. Almost all our deals in DAS Phase I were done on a cost-per-subscriber model. We have written to Trai on the violations done by GTPL & Hathway and the regulator has now asked GTPL to respond by 10 April.”

In its complaint, IndiaCast has alleged that Hathway and its affiliate GTPL illegally collided to coerce IndiaCast into acceding to their demands including increasing the placement fees, reducing subscription fees and also to re-open DAS Phase I deals already executed.

Giving his perspective on the dispute, GTPL president Sumit Bose says that the MSO has followed Trai regulations in letter and spirit while dealing with IndiaCast. GTPL, he says, had an agreement with IndiaCast till 31 March 2013.

He claims that IndiaCast itself did not respond to GTPL‘s offer of working on a new deal for phase II for almost two and a half months. IndiaCast officials did get in touch with GTPL by that time the company‘s management had decided against entering into a new deal with IndiaCast.

“IndiaCast was never inclined to sit across the table to discuss the deal with us despite our keenness. We waited for more than two and a half months but there was no response from them (IndiaCast). Since we did not get any response, the GTPL management decided to switch off the channels as we had to look at our own business objectives as well,” affirms Bose.

The MSO then switched off IndiaCast channels in Gujarat citing financial unviability.

However, IndiaCast‘s Gaurav Gandhi is amused with the idea. On the contrary, he feels that the deal is unviable for IndiaCast as its analogue deal had it paying out more in carriage fees than the subscription fees that accrued to it courtesy GTPL.

“Both GTPL and Hathway have cited financial unviability and financial constraints as reasons for discontinuation of deals for IndiaCast channels. This is the basis of the notice they sent for their existing deals – and these existing deals are where we were paying them more carriage, then they are paying us for subscription. So how can a deal be financially unviable for the MSO if they are receiving more than they are paying? This clearly demonstrates the strong-arm tactics and the intentions of GTPL and Hathway,” avers Gandhi.

Bose strongly denies charges of strong arm tactics by IndiaCast. To buttress his point, he says that Gujarat is as competitive a market as any other market in India is, with the presence of several leading MSOs and DTH operators.

According to Bose, it is quite optimistic on the part of anyone to think that carriage fees will come down so soon despite digitisation. He also asserts that GTPL has managed to retain its carriage fee level in the deals they have done so far to what they were earlier.

“I don‘t see the carriage fee coming down in the near term. Particularly the market that we are operating in, we expect to cross our own expectations on the carriage front. The deals we have done so far are in line with our expectations,” declares Bose.

The last word on the dispute has not yet been said.

April 6, 2013