Tag: Hathway Cable

  • Industry airs views on Phase II digitisation “grace period”

    Industry airs views on Phase II digitisation “grace period”

    MUMBAI: What does the industry think about the government‘s decision to allow a grace period of 15 days for the rollout of phase II digitisation in some cities? Well, we at indiantelevision.com decided to find out by speaking to a cross section of industry to find out.

    Indian Broadcasting Foundation (IBF) president and Multi Screen Media (MSM) CEO Manjit Singh, who is in Kolkata for the first match of the IPL, is clear that “as a broadcaster I would have preferred the government not giving any grace period. But since the ministry is more aware of the ground situation, I will go with its decision.”

    Hinduja Ventures Ltd whole time director Ashok Mansukhani believes that “if the government wanted to give a grace period of 15 days, it should have been after consultation with the MSOs who have been entrusted with the task of majorly implementing digitisation. Where it has been substantially implemented, there was no need to give a grace period. Where deployment is below 20 per cent, discussion could have been held on a longer timeline than 15 days.”

    Mansukhani adds that he would like the digitisation numbers of Phase II which are being released to be revisited for some localities. “There is some dispute about the numbers,” he says.

    He highlights that the objective of digitisation is to end under-declaration by cable TV operators. “If DAS Phase II deployment is uneven then government could have taken a two step process where pay TV channels could have been switched off first and the free to air channels later to allow for a smooth transition,” he says.

    Hathway Cable & Datacom MD & CEO Jagdish Kumar is of the opinion that from his network‘s perspective he would have preferred not to have a grace period at all. “From our perspective, we are well prepared with the ability to deploy set top boxes to almost 90 per cent of our and our joint venture networks,” he says.

    He points out that the lack of initiative on the part broadcasters to sign “digital agreements for phase II towns has been disappointing. We are working with broadcasters to get them moving. Basically, the industry is toying with a fixed fee or cost per subscriber deals.”

    DEN Networks COO M.G. Azhar is of the view that it was good the government has given the grace period keeping the consumers in mind. “Where set top boxes (STBs) have not been deployed effectively, the consumer should not face an analogue blackout,” he says.

    Tata Sky MD & CEO Harit Nagpal has the final word. Speaking to Indiantelevision.com yesterday, he had said that there was “no need for a grace period as the DTH operators are more than equipped to meet the STB demand wherever there is a shortage.”

  • Digitisation: Hathway Cable’s capex need is Rs 4 bn in Q4

    Digitisation: Hathway Cable’s capex need is Rs 4 bn in Q4

    MUMBAI: Hathway Cable & Datacom‘s capital expenditure in the last quarter of this fiscal on account of Phase 2 digitisation will be in the region of Rs 4 billion, a top executive of the company said.

    The multi-system operator (MSO) is anticipating a deployment of 2.6 million set-top boxes (STBs) in the quarter beginning January.

    “The financing will be met by a mix of debt and vendor financing. We will be requiring a debt of Rs 3 billion,” Hathway Cable and Datacom managing director and chief executive officer Jagdish Kumar told Indiantelevision.com.

    With this fresh debt, Hathway Cable & Datacom‘s total debt would touch Rs 8 billion.
    The company has seeded 2.1 million boxes in the first phase of digitisation. “We are looking at touching 2.2 million in the Phase 1 DAS (Digital Addressable System) cities,” Kumar said.

    Kumar feels that there will be no major decline in carriage fees. “In the first phase, we have seen around 10 per cent fall in carriage fees. We do not anticipate any impact on carriage fees as more channels have come under the ambit with the bandwidth expanding due to digitisation,” Kumar said.

    But when will the MSO start offering packages to the subscribers and start billing them in the DAS markets? “We expect the billing to be effective from the first quarter of next fiscal,” said Kumar.

    Hathway is considering broadband upgrade from DOCSIS 2.4 to 3.4. The MSO is doing pilots but no final decision has been taken yet.

  • Cable industry vetaran Ketan Thakker quits Digicable

    Cable industry vetaran Ketan Thakker quits Digicable

    MUMBAI: Ketan Thakker, a veteran in the cable television industry, has quit Digicable Network as Vice President – Technical after spending more than five years in the company.

    At Digicable, Thakker was overall business head for OFC infrastructure at a pan India level. He was also the technical in-charge of digital Headend and SMS of entire Western region.

    Thakker, a Diploma holder in Industrial Electronics, boasts of a professional career spanning more than 21 years encompassing CATV industry, digital headend and maintenance/design/re-design of entire network.
    Prior to joining Digicable, Thakker was associated with Wire & Wireless India Limited (now Siti Cable) as Deputy General Manager. He served Siti Cable for a year as an overall technical in charge of Digital Headend, SMS and Tech-operations.

    He had also worked with Raheja Group-promoted Hathway Cable and Datacom for five years as Senior Manager – Technical. He was overall technical in charge of Hathway – South Mumbai.

    Thakker was also associated with Win Cable and Datacom as Manager – Technical for a period of two years. He was responsible to supervise the technical aspects of headends for Win Cable in Mumbai, installation and maintenance of control room and trunk lines along with upgradation of trunk line mapping and also testing and inspection of CATV equipments.

  • Jagdish Kumar new Hathway Cable CEO; Jayaraman made vice chairman

    Jagdish Kumar new Hathway Cable CEO; Jayaraman made vice chairman

    MUMBAI: In a major reshuffle, Hathway Cable & Datacom has appointed Jagdish Kumar as the new managing director and CEO of the company. He joins with immediate effect.

    K Jayaraman, who was occupying this chair, moves to the position of vice chairman.

    Kumar will report directly to the Hathway board, sources say.

    In his earlier stint, Kumar was the president of Reliance Industries Limited‘s (RIL) media and entertainment business.

    Before RIL, Kumar had a 16-year stint at Star India where he was involved in several key initiatives including the media company‘s direct-to-home (DTH) venture and acquisition of regional broadcasting company Asianet.

    Incidentally, Kumar was on the board of Hathway Cable & Datacom as a representative from Star. Earlier this year News Corp had exited Hathway by selling its 17.3 per cent stake in Hathway for Rs 3.58 billion.

    Kumar was also made Star India chief operating officer when Uday Shankar was made chief executive officer.

    In his last assignment at Star, Kumar was given the operational charge of Kannada general entertainment channel Suvarna. This was in addition to his earlier functions as Star India president – South.

  • Ten Golf kicks off, priced at Rs 200

    Ten Golf kicks off, priced at Rs 200

    MUMBAI: Taj Television Thursday launched Ten Golf, its third specialised channel, and has priced it aggressively at Rs 200 per subscriber a month.

    The golf-dedicated channel will be currently available on Dish TV and on Hathway Cable & Datacom‘s digital set-top boxes (STBs).

    “We have priced the channel at Rs 200 and are only offering it as a standalone channel . Ten Golf has set a target of 500,000 subscribers in three years,” Taj TV CEO Atul Pande told Indiantelevision.com.

    Taj has become a four-channel sports network, the other three being Ten Sports, Ten Cricket and Ten Action+. The channel will be on four platforms by the end of the month.

    “India as a sporting nation is fast transforming from a single sport to a multi-sport nation. As one of India’s leading sports broadcaster, we understand that the sports consumption pattern of the Indian viewer raises the need for specialised differentiated sport channels and this is what we hope to deliver to our revered golf viewers,” Pande said.

    The channel will showcase a mix of live, non-live and feature programming, “Along with live Golf action, Ten Golf will also showcase feature programming on Golf including magazine shows and archival programming,” said Pande.

    In terms of marketing, the channel will be promoted through a combination of ATL and BTL activities. Below the line activities will come in the form of a promotional offer through things like free golf rounds and merchandise.

    International syndication is also an important part of the plan, Pande said. Locally, the channel sees viewership potential in non-metro cities like Pune and Punjab.

    Ten was recently on a content acquisition spree , getting hold of the broadcast rights of professional golf tournaments in India through a three-year partnership with PGTI.

    The broadcaster had recently inked a licensing deal with NBCUniversal which will allow it to showcase 400 hours of golf programming. It also has European Tour and Asian Tour rights till 2016, in addition to US PGA Championship, Ryder Cup, LPGA and LET.

  • Cisco to be top Cas firm in India with NDS buy

    Cisco to be top Cas firm in India with NDS buy

    MUMBAI: Cisco will become the largest video and content security solutions provider in India following its $5 billion acquisition of NDS.


    The California-based networking giant has been highly active in the Indian market, inking deals with several multi-system operators (MSOs) for providing digital set-top boxes (STBs).


    Cisco Capital has also provided vendor financing to some cable TV networks. It has, for instance, supported Fastway Transmissions, which has presence in Punjab, Haryana and Himachal Pradesh, and Gujarat Telelinks Private Ltd (GTPL), a joint venture where Hathway Cable & Datacom has 50 per cent stake, for its digital services in Kolkata.


    NDS, the video and content security software company currently owned by News Corp and Permira Advisers LLP, is already a major player in the Indian market. It provides encryption systems integration to big digital distribution companies like Tata Sky, Airtel Digital TV, Hathway Cable & Datacom, Den Networks and Asianet.


    “NDS’ service provider footprint will expand Cisco’s video customer base internationally, including in emerging markets, such as in China and India, where video subscriber growth is increasing rapidly. For media companies, this acquisition will strengthen Cisco’s ability to provide them with a platform to directly serve their customers and better align with service providers,” Cisco MD, Corporate Strategy, Investments and Acquisitions – Asia Pacific Japan Theatre & WW Services Joydeep Bose told Indiantelevision.com.


    Cisco will also have access to NDS‘ R&D centre at Bangalore in India. NDS has invested over $250 million in the country and has 1900 people, with offices in Delhi, Mumbai and Bangalore.


    “The merger between NDS and Cisco brings the best of both worlds to the digital-pay TV market. NDS is the leader in the digital broadcasting sector in India, securing and enhancing the TV- watching experience of over 20 million homes in India. We can leverage the resources that Cisco brings to this merger, so that we can both work together to support the digitalisation process in India,” NDS senior VP, GM and MD, Asia Pacific Sue Taylor told Indiantelevision.


    Added Bose, “In India, NDS is a leading provider to the satellite TV market, which is rapidly growing due to increasing subscriber penetration.”


    Cisco, with the new acquisition, will be in a position to aggressively push for expansion to smaller cable TV networks in India, something which NDS has not been able to tap due to cost reasons.


    “Cisco will become the largest Cas (conditional access system) company in India with the acquisition of NDS. We already have a 10-year association with Cisco for our broadband service,” said You Broadband and Cable India MD & CEO EVS Chakravarthy. Cisco also provides Cas solutions to Scod18, You Broadband‘s cable TV outfit in Mumbai.


    Cisco agreed Thursday to buy NDS for $5 billion, including $1 billion retention-based incentives and debt as it seeks to expand its video services business. The acquisition will strengthen Cisco‘s position in emerging markets like China, besides India. BSkyB, Canal Plus and DirecTV are also NDS‘ main clients.


    “The NDS acquisition is aligned with our video priority and our strategic initiatives – to lead in emerging countries, build software platforms, and drive business and technology architectures. NDS’s video software solutions are complementary to Cisco’s Videoscape platform, and together they will transform how service providers and media companies deliver next generation video experiences,” said Bose.


    The acquisition will have an impact in the Indian market. “This is in line with Cisco‘s earlier acquisition of Scientific Atlanta to create an end-to-end triple play solution for cable networks in the digital economy. The NDS purchase is in the same direction as it seeks to expand its Videoscape entertainment platform. Cisco boxes will come with NDS embedded Cas,” said Chakravarthy.


    The acquisition is expected to close during the second half of calendar year 2012, subject to regulatory approvals.


    Fastway Transmissions, the cable distribution company with foothold in Punjab, Haryana and Himachal Pradesh, has signed a pact with Cisco to deploy over two million STBs over the next two years.

  • ‘Buyout valuations will now be decided in terms of ARPU rather than carriage growth’ : IMCL MD and CEO Ravi Mansukhani

    ‘Buyout valuations will now be decided in terms of ARPU rather than carriage growth’ : IMCL MD and CEO Ravi Mansukhani

    IndusInd Media and Communications Ltd (IMCL), the media subsidiary company of Hinduja Ventures Ltd, plans to raise $100 million, a major chunk of which will be used to fund acquisitions.

     

    Operating its cable TV business under the InCablenet brand, IMCL had earlier planned an initial public offering (IPO) but changed its stance as the newly listed cable TV entities, Den Networks and Hathway Cable & Datacom, dropped in market value.

     

    Even on the acquisition front, IMCL has changed gears. Earlier, the focus was to buy small-sized cable TV networks and expand geographies. Now it targets big-ticket acquisitions, expecting the sector to consolidate as the government chalks out a schedule for digitisation across the country.

     

    Slow on the broadband path, IMCL is experimenting on new technologies where it will not have to entirely overhaul its network to load on broadband capability.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, IMCL managing director and chief executive officer Ravi Mansukhani talks about how the acquisition game is going to move from carriage calculations to valuations based on ARPU (average revenue per user) growth as the cable TV sector transitions into the digital era.

     

    Excerpts:

    Why is IMCL taking so much time in readying its IPO?
    We are in the market to raise $100 million ahead of the IPO and have mandated Deutsche Bank for this. We want to first build a solid valuation base. We believe the value of the top-rung MSOs will get a significant boost once the government fixes up a schedule for digitisation. We want to also expand on our size before we go for a public float.

     

    We have separately raised Rs 1 billion of debt from General Electric. So funding is being taken care of. We are getting ready to move into top gear.

    Have you finalised on how you are going to raise this amount?
    We are weighing various options. We are looking at mezzanine structures. The final structuring will depend on what fund-raising instrument we select.

    Are we going to expect acquisitions or a drive to greater digitisation?
    We plan to use three-fourth of the amount raised for acquiring cable TV networks. We are looking at small and big-ticket acquisitions. We believe there is going to be consolidation in the industry. For digitisation, we have a separate funding plan to meet the capex requirements.

    Why has there been a change in stance as the earlier focus was to buy small-sized cable TV networks and expand geographies?
    We see an opportunity out there as the other leading MSOs like Hathway Cable & Datacom and Den Networks are not on a buying spree. The valuations have dropped and we are ready to make big-ticket acquisitions ahead of the government‘s digitisation schedule. The acquisition focus now will be not on expanding into new geographies but on consolidating and growing in existing operational cities.

    Will the acquisition game change even as the government lays out a roadmap for digitisation across the country?
    The game will definitely change. A few years back, when the pace was set by new entrants such as Den and Digicable, acquisitions were based on carriage calculations and TRP cities were favoured. Now, as digitisation creeps in, buyout valuations will be decided in terms of ARPU growth. So we have decided to consolidate and expand in areas where we already exist like Maharashtra. There is no point in spreading lean.

    “We are in the market to raise $100 mn ahead of the IPO. We want to first build a solid valuation base. We believe the value of the top-rung MSOs will get a significant boost once the govt fixes up a schedule for digitisation. We want to also expand on our size before we go for a public float”

    Do you see MSOs fighting amongst each other once the digitisation programme is announced?
    MSOs would rather consolidate and expand where they are strong; their focus would be on digitising their existing network. MSOs can‘t create a fight today without being attacked; too much is at stake.

    How will MSOs counter the DTH invasion?
    India will remain primarily a cable country. Yes, in a diversified and fragmented market, DTH will have space. But being the incumbent player, cable TV has a distinct advantage. Besides, it is cheaper priced, bandwidth is no issue and it can be interactive. MSOs will also start launching server-based local channels as in the digital era, space will open up for more channels. There will be need for local news and events. DTH can‘t offer these channels.

    How much of IMCL‘s network is digitised?
    We have over half a million digital set-top boxes (STBs) installed. Out of the 28 cities that we operate in, we provide digital services in 17 cities via 10 digital head-ends.

     

    If the government‘s digitisation plan is on stream, we will deploy close to two million additional boxes in Phase 1. We are going to fund our digitisation through lease and vendor financing.

    Why is IMCL‘s broadband story yet to emerge?
    Our focus has not been on broadband in the past because the franchisee operators have been providing it. Though we provide broadband in nine cities, our revenues from this segment stood at just Rs 50-60 million in FY‘11.

     

    We plan to have a strong broadband story once the digital path is properly spelt out. We are currently experimenting on new technologies where we will not have to entirely overhaul our network to load on broadband capability.

     

    We won‘t have a problem building up broadband revenues once we have pushed the digital STBs in. The script will change after the government announces the sunset date for the digitally notified areas. It is companies like You Telecom who will need to grow their cable TV presence in order to provide broadband.

    Hathway has announced it would launch its HD service in June. When are you getting into this segment?
    Our first priority is to offer digital service. We will then graduate to HD. The market is still not ready for it. HD boxes are on the anvil and we will introduce them into the market in the next few months.

    IMCL‘s total income jumped 23 per cent to Rs 4.03 billion in FY‘11. What growth do you estimate in FY‘12 and what is the outlook on carriage income?
    We expect revenue to grow between 20-25 per cent. This will be higher if we raise capital fast and make big-ticket acquisitions.

     

    We saw 18-20 per cent growth in carriage income in FY‘11. We expect strong growth from this stream as more and more channels get launched in the fiscal.

  • Trai not for mandated Cas in rest of India

    Trai not for mandated Cas in rest of India

     MUMBAI: The Telecom Regulatory Authority of India (Trai) feels Cas (conditional access system) should roll out voluntarily rather than be mandated in other parts of the country.

    “We may think of mandatory Cas for the larger metros but in other parts of the country it may not be the best way forward. We haven’t, though, made up our mind on this. We have constituted a small group representing all the stakeholders to suggest on how to take voluntary Cas forward. We realise that Cas has gained momentum and wouldn’t like to miss on that opportunity,” said Trai advisor M C Chaube while speaking at a workshop on “Cas and Digital CATV,” organised by Satellite & Cable TV (SCaT) magazine in Mumbai.

    With some cable operators continuing to transmit unencrypted signals in the Cas areas, the broadcast and cable sector regulator intends to come down heavily on them.

    “We are aware that there are still slippages and there are complaints that encryption have not taken place in some areas. We are going to take action against this as it is at the core of Cas,” said Chaube.

    Reacting to a suggestion from the three multi-system operators (Wire & Wireless India Ltd, Hathway Cable & Datacom and Incablenet) that Cas should be opened up to the other areas of Mumbai, Delhi and Kolkata by April, Chaube said the process needed a certain run-up time. “Cas is not just about three MSOs. The smaller MSOs should be given time to prepare for laying out the digital infrastructure. Consolidation is bound to happen as digitalisation requires deep pockets, but as a regulator we shouldn’t have such a time frame in mind that makes it difficult for the smaller MSOs,” he added.

    Trai would relook at such areas like pricing and a la carte issues in the middle of this year. “We are going to revisit at some of these decisions and take a call whether appropriate adjustments are needed. We would be examining such issues as similar pricing for all genres of channels, a la carte offerings and Rs 77 on free-to-air (FTA) channels,” Chaube said.

    The seeding of set-top boxes (STBs) would touch 500000 in a week’s time out of an estimated cable and satellite home of 1.2 million in the Cas belt. “The average penetration would be 40 per cent. Kolkata is seeing slow offtake because regional channels are popular and they are in FTA mode. Our aim is not to see that boxes are sold but to offer consumers choice through Cas,” Chaube clarified. The penetration percentage though will be clearer when figures are available on the number of homes that have more than one TV sets.

    The next stage of progress would be when consumer forms return to the MSOs and they are fed into the subscriber management system (SMS).

    In case of voluntary Cas, the crucial element was for the broadcasters and MSOs to enter into commercial agreements, he added.

    In a panel discussion, WWIL MD Jagjit Kohli pointed out that Trai should come out with some regulatory framework to facilitate voluntary Cas and Headend-In-The-Sky (HITS). “Broadcasters may not support voluntary Cas. So it would be essential for Trai to define some rules as the momentum for digitalisation should not be lost,” he added.

    Hathway Cable & Datacom MD and CEO K Jayaraman pointed out that cable operators in non Cas areas should be ready to adopt digitalisation which has grown much faster in India than what was being initially preicted.

    Incablenet head Ravi Mansukhani said the seeding process has been successful and the next step for MSOs would be to stop free access of pay channels in phases.

  • I&B bans AXN for ‘objectionable’ content

    I&B bans AXN for ‘objectionable’ content

    NEW DELHI: The government has banned, with immediate effect, the telecast of Sony Entertainment’s action chanel AXN for two months for showing “obscene programmes”.

    The information and broadcasting ministry today issued directions for blocking signals of the channel into India up to 15 March.

    Sources told Indiantelevision.com that the ministry had taken objection to the channel repeatedly telecasting such programmes such as World’s Sexiest Commercials that “are against good taste or decency and are likely to adversely affect public morality”.

    The government has been issuing warnings from time to time to various channels to desist from telecasting “obscene programmes” and software not suitable for women and children.

    The Cable Television Networks (Regulation) Act 1995 clearly stipulates that the government has the right to block or take action against channels which violate the broadcasting and advertising codes of the country.

    Multi-system operators (MSOs) like Hathway Cable & Datacom have blacked out AXN. Incablenet is in the process of switching off the channel, a senior executive in the company said.

  • Shemaroo to offer cable operators movies on licensing model

    Shemaroo to offer cable operators movies on licensing model

    MUMBAI: Shemaroo has entered into an exclusive agreement with Novex Communications for licensing rights of all its movies to cable TV operators. The home video player, which also has a huge movie library for satellite telecast, was earlier selling its cable TV rights directly to multi-system operators (MSOs).

    The movies for cable TV telecast which are already with Hathway Cable & Datacom will also be transferred to Novek after the expiry of its term. Hathway had bought five year rights in a bulk deal, a majority of which are expiring by the end of this year.

    Shemaroo will, thus, be doing away with the fixed fee model whereby it was selling cable TV rights to MSOs. “We will be able to maximise our revenue through the licensee model. We are given a minimum guaranteed amount and on increased growth, will have a revenue share,” says Shemaroo Films MD Raman Maroo.

    Already in the kitty is a collection of over 500 Hindi movies, while at least 15-16 will be added every month. “Almost 80 per cent of what we had sold to Hathway would expire by the end of this year. We will be assigning all our movies to Novex for cable TV exploitation. We have struck a two-year exclusive deal with them,” confirms Maroo.

    Novex Communications plans to charge cable operators a fee of Rs 35 per subscriber, though in reality most of the agreements will be lumpsome deals. “We will enter into annual deals with cable operators. Unlike most of the other movie content suppliers, we will provide actual software to cable operators. We will have at least 700 movies for licensing,” Novex Communications promoter Ketan Kanakia says.

    Novex has already signed a deal with the HFCL Infotel subsidiary Connect Broadband Services Ltd for J&K, Himachal, Punjab and parts of Haryana.

    MSOs, who run cable movie channels bank on the acquisition model. Cable movie channels CVO and CCC, promoted by MSOs Indusind Media and Hathway respectively, acquire movies for cable TV telecast. On the other hand, it is the licensing model which is popular with bulk of the cable TV operators.