ITV

Tag: Siti Cable

  • Revamp the Dominant News Pattern through India 24X7 Kya Khabar Hai!

    Revamp the Dominant News Pattern through India 24X7 Kya Khabar Hai!

    MUMBAI: India 24×7 ushers in a breadth of fresh air, revamping the dominant pattern of Indian News channel and bringing Hope amidst apparently gloomy happening. India 24X7 a national Hindi ‘Free To Air (FTA)’ news Channel is going to start operations in Indian domain from October 24, 2015.

     

    To cut the morass of market, the channel aims to serve family entertainment, healthy viewing and distinctive news to upgrade its viewers to make informed choices rather than only news. To draw fringe audience on to the channel, anchors will play a key role. Their personality, styling and reliability will determine which audiences find resonance with the brand.

     

     While the news genre is traditionally seen as largely an individual viewing space, India 24×7 wishes to create a family appointment viewing experience. It will attract different age groups and different gender skews. It will also address viewers who are young in terms of mindset and shared value.

     

    Channel Editor Vasindra Mishra said, “India 24X7 will choose clarity over aggression, Jankari over sensationalism. It endeavours to offer ‘distinctive news’ as opposed to breaking news, or sensational news. With our family viewing objective, the flavour of coverage will focus on the positive side of every story and also enliven us through its entertainment quotient.”

     

    Mishra went on to add, “If you look at existing news programmes, you will find that majority of the news channels are busy proliferating negativity in the society as if there is no hope available for them. But, India 24X7 believes in hope. We will try to fish out hope even from the tragic incidents.”

     

    Traditionally, news genre targets male 35+ audiences, but India 24×7 is young at heart through the presentation of its content.  The channel will work on inventory of 12 mins per hour giving more content and news to the viewers that brings knowledge and empowers them.

     

    The channel is available on major DTH platforms and local cable networks like Dish TV, Airtel, Tata Sky, DD Free Dish, Siti Cable, Fastway, Digi Cable, DEN, Hathway, In Cable, GTPL and other local cable networks.

  • TDSAT asks Karnataka LCO body to reconcile disputes with Siti Cable

    TDSAT asks Karnataka LCO body to reconcile disputes with Siti Cable

    NEW DELHI: The Karnataka State Digital Cable TV Operators Welfare Association has been asked to visit the Bangalore offices of Siti Cable Networks to reconcile their accounts and resolve their disputes about quality of set top boxes (STBs).

     

    The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) had asked the parties in August to take their issues before a mediation centre by 30 September. It was informed today that the parties were meeting and discussing the matter bilaterally.

     

    TDSAT chairman Aftab Alam and members Kuldip Singh and B B Srivastava listed the matter for future hearing on 9 October.

     

    It had also directed the parties in the last hearing that status quo would be maintained till this exercise is completed.

     

    Furthermore, the Tribunal said any one of the two parties were free to mention the matter before the Tribunal in case it is not satisfied with the mediation.

     

    The Karnataka Association claims to represent 269 cable operators and its counsel Nittin Bhatia claimed that the STBs were of very poor quality and was badly affecting the viewing quality of the signals supplied by Siti Cable.

     

    He said that all the cable operators who are part of the petition were willing and prepared to make payment of the monthly subscription fees at the rate of Rs 60 per month. He also stated that the cable operators are willing to have a reconciliation of accounts and if any dues are found against them at the rate of Rs 60 per month, they would clear all the dues without delay. 

     

    Bhatia said all the cable operators who are represented in the petition were willing to introduce package-based transmission as directed by the Telecom Regulatory Authority of India (TRAI), as in that case the cable operators would also be entitled to certain benefits.

     

    Siti Cabe counsel Upender Thakur said there was a dispute as to the number of cable operators involved. He also said large sums are due against the cable operators and  in any event Siti Cable is bound to follow the TRAI’s direction to introduce package-based transmission of channels. 

     

    The Tribunal said the parties should first try to resolve their disputes through mediation. It asked the mediator to try to conclude the matter expeditiously.  

  • TDSAT directs Siti Cable & subsidiaries to unblock signals to 141 Kolkata LCOs

    TDSAT directs Siti Cable & subsidiaries to unblock signals to 141 Kolkata LCOs

    NEW DELHI: Siti Cable and four multi system operators (MSOs) associated with it have been directed by the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) to unblock the IDs and remove on-screen displays (OSDs), if any are running on the network of any of Kolkata’S 141 cable operators.

     

    The Tribunal also asked the Cable Operators Sangram Association of Kolkata representing the LCOs, Siti Cable, and the four MSOs namely Indian Cable Net Company, Calcutta Communication, Purvi Communication and Purbalaya Communication to maintain status quo both in regard to payment of monthly subscription fees as also supply of signals to the individual LCOs until further orders. 

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava also accepted the plea of the Association to implead the four MSOs in the petition as some LCOs received their Siti Cable signals through these.

     

    Listing the matter for 15 October, the Tribunal noted that the companies “are evidently subsidiaries of the sole respondent, namely Siti Cable Network, but in view of the objection raised on its behalf, it is necessary to bring them on record by having them formally impleaded as party respondents.” 

  • Siti Cable to not disconnect signals to 5 Faridabad LCOs

    Siti Cable to not disconnect signals to 5 Faridabad LCOs

    NEW DELHI: Siti Cable Networks has committed before the Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) that it will not disconnect the signals of the five local cable operators (LCOs) of Faridabad.

     

    These cable operators are members of the Excellent Cable Operators Association.

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava directed that these cases be also listed on 8 October.

     

    This case will now be heard along with the batch of cases from Progressive Cable Network Association, Faridabad.

     

    The Tribunal noted that it had received Rohit Vasvani’s report in the case.

  • Q1-2016: Cable TV in India – Sequential quarter revenues down, broadband shines

    Q1-2016: Cable TV in India – Sequential quarter revenues down, broadband shines

    Indian Cable TV is a long haul work-in-progress is what we had said last quarter. The results of the four sample companies in the quarter ended 30 June, 2015 (Q1-2016) in that report seem to endorse this fact. All four companies comprising the big three – Hathway Cable and Datacom Limited, Den Networks Ltd, Siti Cable Network Limited and the minnow – Ortel Communication Limited reported a quarter on quarter (QoQ) drop in total income from operations (TIO or revenue) in the current quarter. As expected, broadband subscribers and revenue continues to grow.

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

    (2) Some figures are approximate.

    (3) Generally other income has not been factored in for EBIDTA figures in the report.

    Performance

    Though Den Networks’ and Hathway’s YoY results in the current quarter deteriorated, QoQ, both performed better, albeit both the cable companies reported losses. Siti Cable’s loss in Q1-2016 increased YoY and QoQ, and though regional player Ortel returned a profit in the current quarter as compared to a loss in Q1-2015, its Q1-2016 profit was less than half the profit reported in the immediate trailing quarter.

    Over the last few quarters, Den Networks’ financial performance has shown a marked decline. From a company that reported profit after taxes, it has started reporting a loss. Without considering other income, the company reported a negative EBIDTA of Rs 4.67 crore as compared to the operating profit of Rs 57.16 crore in Q1-2015 and a higher operating loss of Rs 5.97 crore in the immediate trailing quarter. However, the company’s Cable TV segment reported a higher QoQ EBIDTA in Q1-2016 of Rs 18 crore (6.9 per cent margin) as compared to the Rs 14 crore (5.3 per cent margin) in Q4-2015, but a lot lower than the EBIDTA of Rs 69 crore (27 per cent margin) in Q1-2015.

    Hathway’s EBIDTA in the current quarter declined 25.4 per cent to Rs 32.73 crore (12.8 per cent margin) as compared to the Rs 43.87 crore (17.5 per cent margin) in the corresponding year ago quarter but was 5.7 per cent more than the Rs 30.98 crore (11.5 per cent margin) in the immediate trailing quarter.

    Siti Cable’s EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and margin expansion by 501 bps QoQ,” explains Siti Cable executive director and CEO VD Wadhwa.

    Ortel’s EBIDTA in the current quarter improved by 24.1 per cent to Rs 10.84 crore (26.7 per cent margin) as compared to the Rs 8.73 crore (22.1 per cent margin) in Q1-2015, but declined 34.5 per cent as compared to the Rs 16.55 crore (36.9 per cent margin) in the immediate trailing quarter.

    Ortel president and CEO Bibhu Prasad Rath said, “Overall growth was delivered on the back of steady contribution from Cable TV and Broadband segments supported by continued momentum in the Infrastructure Leasing segment. Significant growth in subscriber base, deeper penetration, enhanced product offerings and a strong team, should enable us to notably improve our performance going forward.”

    Total Income from Operations

    Please refer to the figure below. Den Networks, the company with the largest TIO among the four, reported TIO at Rs 265.60 crore, 11.1 per cent less than the Rs 298.81 crore in Q1-2015 and 1.7 per cent lower than the Rs 270.30 crore in Q4-2015. The company’s loss in the current quarter at Rs 51.89 crore was lower than the Rs 61.15 crore reported in the immediate trailing quarter Q4-2015. The company had posted a profit of Rs 1.12 crore (0.4 per cent margin) in the corresponding year ago quarter – Q1-2015.

    Though Hathway reported 5.7 per cent growth in standalone TIO in Q1-2016 to Rs 264,41 from Rs 250.11 crore in Q1-2015 QoQ, its TIO was 2.1 per cent lower than the Rs 270.03 crore in Q4-2015. Hathway’s loss in the current quarter widened to Rs 43.91 crore as compared to the Rs 0.93 crore in Q1-2015, but was considerably lower than the Rs 76.99 crore in Q4-2015.

    Siti Cable reported TIO of Rs 228.09 crore in Q1-2016, which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015. The company reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore and a loss of Rs 34.13 crore in Q4-2015.

    Ortel reported 20.5 per cent growth in TIO at Rs 40.60 crore in Q1-2016 as compared to the Rs 33.69 crore in Q1-2015, but 9.6 per cent lower than the Rs 44.91 crore in Q4-2015. Ortel reported profit after tax (PAT) of Rs 2.44 crore (six per cent margin) as compared to a loss of Rs 1.16 crore in the corresponding year ago quarter, but Q1-2016 PAT was less than half (lower by 56.8 per cent) the PAT of Rs 5.65 crore (12.6 per cent margin) in the immediate trailing quarter.

    Cable TV (Video) Subscription Revenue

    Subscription revenue in the current quarter dropped QoQ in the case of Siti Cable and Hathway, while both Den Network and Ortel saw an increase in YoY and QoQ subscription revenue. At the same time, all the companies have reported higher digitisation numbers in DAS and non-DAS areas. Siti Cable and Ortel have reported a gain in subscription numbers as well. While Den Networks and Hathway have reported flat or slightly higher digital as well as analogue average revenue per user (ARPU), Ortel has reported a slight drop in both ARPUs. 

    According to company sources, Siti Cable, which is the biggest player among the four sample companies in terms of cable TV subscription revenue, had flat QoQ ARPUs in Q1-2016, while YoY ARPUs showed double digit growth. The company claims that its subscriber base has increased by two lakh (all digital) to 107 lakh as it expanded its footprint by entering into 12 new towns across India as a part of the ongoing voluntary digitization process in order to be compliant with the DAS phase III digitisation deadline.

    Despite the flat QoQ ARPUs and higher subscription numbers, Siti Cable’s cable TV subscription revenue fell QoQ because the company had initiated strict measures against erring LCOs and had switched off signals to the extent of about four lakh cable TV consumers, as per industry sources.

    “During the quarter, we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” revealed Wadhwa. A source told Indiantelevision.com that Siti Cable’s strict measures seem to have worked and signals have been resumed to the subscribers, but that it would take time to reflect the improved numbers in its financials.

    Ortel’s Rath added, “I am also pleased to share that over and above the 542,217 RGUs (revenue generating users) as on 30 June, 2015, we have signed buy out agreements with multiple LCOs with total estimated RGUs of 33,000, which would be integrated into Ortel’s last mile network going forward. So we remain on track and are confident of achieving our target of one million RGUs by March 2017 backed by our LCO buy out strategy and focus on organic growth both in broadband and cable TV.”

    Pay channel Costs

    Please refer to the figure below that represents the Cable TV costs paid by the four sample companies. 

    The big three reported a QoQ fall in pay channel costs, while in the case of Ortel, pay channel costs rose. This does not mean that a la carte has become a reality and the multi-system operators (MSOs) are only paying for what their subscribers are paying. It’s just that this quarter, balancing amounts have been paid to a broadcast aggregator, since excess payments had been made until Q4-2015. 

    Diverting from the performance for a bit, a source from an MSO says, “As a matter of fact, it’s the big broadcasters that are resisting a la carte. A la carte will affect their overall advertisement revenues for packaged deals across the multiple channels within their fold.”

    Internet subscription revenue

    This is one avenue that most cable companies are looking at as their business and revenue growth alternative. Internet ARPUs in India are much higher – to the extent of 3 to10 times the ARPUs from cable television. All the four sample players in this article reported YoY growth. The big three- Hathway, Den and Siti Cable also reported QoQ revenue growth, while Ortel’s internet subscription revenue remained flat. Higher subscription numbers, higher ARPUs brought in the accelerated revenue growth for Hathway, Den and Siti Cable. Typically, broadband ARPUs for the big three were in the range of Rs 750 in Q1-2016 as Rs against 650-700 in Q1-2015 and Rs 720-750 in the previous quarter.

    Among the four, Hathway with an initial higher internet subscriber base in excess of four lakh plus, reported a growth of 50,000 subscribers to bring its total subscriber numbers to 4.6 lakh in Q1-2016. Already its internet revenue subscription has a reasonably big share in its overall revenue pie. Comparatively, the other three have internet subscribers than number in just tens of thousands, though all have reported reasonable YoY and QoQ growth in subscribers.

    Ortel reported a slight depletion in ARPUs and hence the flat internet subscription revenue despite a higher QoQ subscriber base. Ortel’s broadband RGUs in the current quarter grew 4.1 per cent to 60,900 from 58,519 in Q4-2015. Ortel also launched up to 50 Mbps DOCSIS 3.0 Broadband Internet in Odisha. The company’s broadband ARPUs in the current quarter also declined by Re 1 to Rs 393 from Rs 394 in Q4-2015.

    End Points

    At present, most MSOs have two separate arrangements with broadcasters – one for Digital Addressable System (DAS) areas and another for non DAS areas. Recently the Essel Group that operates both carriage platforms – DTH though Dish TV as well cable TV through Siti Cable – formed a common entity called “COMNET” to help synergize strengths of both entities in dealing with broadcasters. Siti Cable says that the primary reason for forming this venture was to ensure that consumers have access to quality content at affordable prices. This move would assist in keeping content cost in consonance with consumer ARPUs and market realities. 

    Players across mature markets such as the US continue to report a fall in video subscribers – to that extent that most companies there have higher broadband subscribers than video subscribers. Such a scenario is not probable in the near future in India, but cable TV players do face competition from wireless internet players and mobile companies as well as from other devices as a mode of entertainment rather than the idiot box. Carriage or placement fees could continue as bargaining currency in the near future.

    Once a la carte becomes a reality, to some extent, one could infer that if the pay channel costs are down, it’s because subscribers have used the option, and not that the player has lost more subscribers than it gained. In theory, DAS has made it possible for carriers to pay broadcasters if and when the subscriber subscribes for pay channels. It now remains to be seen if the players in the industry allow the theory to be put into practice. Cable TV subscription revenues and ARPUs could fall if players don’t play it right.

    The response to the Hinduja’s HITS (headends in the sky) platform from local cable operators (LCOs) has been tremendous, if one were to go by initial reports. The DTH industry has started making inroads into DAS phase III and IV areas and could grab more than the 30 to 40 per cent of the subscribers that it did in phase I and phase II.

    As has been pointed out by industry experts, just the seeding of set top boxes (often non-BIS compliant STBs) does not mean implementation of DAS as it was truly meant to be. It can be safely reiterated that there’s a lot of work to be done by the industry.

  • Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    Q1-2016: Siti Cable broadband revenue up 64%; Operating income up 9%

    BENGALURU: Subhash Chandra led Essel Group’s Siti Cable Network Limited (Siti Cable) reported operating revenue (total income from operations, or TIO) of Rs 228.09 crore in the quarter ended 30 June, 2015 (Q1-2016), which was 9.1 per cent higher than the Rs 209.02 crore in Q1-2015, but was 10.9 per cent lower QoQ than the Rs 256.01 crore in Q4-2015.

     

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

    (2) All numbers in this report are consolidated unless stated otherwise.

     

    Both television and broadband subscription revenue registered YoY growth, broadband reported 63.6 per cent growth at Rs 9 crore in Q1-2016 as compared to the Rs 5.5 crore in the corresponding year ago quarter and was 13.9 per cent more than the Rs 7.9 crore in the immediate trailing quarter.

     

    Subscription revenue in Q1-2016 at Rs 129 crore was 9.1 per cent higher than the Rs 118.2 crore in Q1-2015, but declined 9.4 per cent as compared to the Rs 142.4 crore in Q4-2015. Activation revenue at Rs 10.9 crore in the current quarter was 25.3 per cent lower than the Rs 14.6 crore in Q1-2015 and was 48.3 per cent lower than the Rs 21.1 crore in Q4-2015. Siti Cable says that effective realisation per subscriber remained flat during the current period.

     

    Siti Cable’s cable universe increased by 200,000 digital subscribers to 107 lakh in Q1-2016 from 105 lakh in Q4-2015. Digital subscriber base increased in the current quarter to 55.8 lakh from 53.8 lakh in Q4-2015. Net broadband additions in the current quarter were 4400 – the count went up to 74,500 from 70,100 in the previous quarter (Q4-2015).

     

    Let us look at the other numbers reported by Siti Cable

     

    Siti Cable reported a higher loss of Rs 37.11 crore in Q1-2016 as compared to the loss of Rs 31.67 crore in Q1-2015 and a loss of Rs 34.13 crore in Q4-2015.

     

    EBIDTA including other income for Q1-2016 increased 5.1 per cent to Rs 38.1 crore as compared to the Rs 36.26 crore in Q1-2015 and was 18.7 per cent more than the Rs 32.11 crore in Q4-2015.

     

    Total Expenditure in Q1-2016 increased 12 per cent to Rs 228.21 crore (100.1 per cent of TIO) as compared to the Rs 203.76 crore (97.5 per cent of TIO) in Q1-2015, but was 18.6 per cent lower than the Rs 280.49 crore (109.6 per cent of TIO) in the previous quarter.

     

    Pay channel costs in the current quarter increased 8.1 per cent to Rs 135.70 crore as compared to the Rs 125.55 crore in Q1-2015 but was 13.6 per cent lower than the Rs 156.98 crore in Q4-2015.

     

    Siti Cable’s Finance costs in Q1-2016 increased 11.6 per cent to Rs 33.90 crore as compared to the Rs 30.37 crore in Q1-2015 and were 9.2 per cent more than the Rs 31.05 crore in Q4-2015.

     

    Other expenses increased 13.9 per cent in the current quarter to Rs 43.32 crore as compared to the Rs 38.05 crore in Q1-2015 but were 40.3 per cent lower than the Rs 72.53 crore in Q4-2015.

     

    “Our commitment to improving operational efficiency and streamlining operations continues, leading to EBITDA growth of 18.7 per cent and Margin expansion by 501 bps QoQ,” said Siti Cable executive director and CEO VD Wadhwa.

     

    “We managed to grow our Broadband revenues by 13.4 per cent QoQ and are on track to expand our Broadband operations in new cities. Delays in content availability held back STB seeding, however we are well poised to expand aggressively this quarter. During the quarter we have further tightened our credit control measures and started taking strict actions against defaulting operators, which shall result into improved credit discipline and saving in operating cost,” added Wadhwa.

  • Siti Cable seeks shareholders’ nod for raising $100 million

    Siti Cable seeks shareholders’ nod for raising $100 million

    MUMBAI: Multi system operator (MSO) Siti Cable is looking at raising up to $100 million through equity shares via public issue, private placement or qualified institutional placement (QIPs) route. The MSO for the same has sought shareholders approval. 

     

    Siti Cable will utilise the funds to meet expenditure to expand its business in phase III and IV of digitisation, ongoing acquisition of MSOs, LCOs and primary points, value added services (VAS), working capital requirements as well as to reduce debts. 

     

    The company sought shareholders’ approval to raise funds through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed rupee equivalent of $100 million.

     

    The members had approved raising of funds of up to $100 million by passing a special resolution through postal ballot in October 2014, against which the MSO has already raised Rs 221.11 crore.  

     

    “Since the validity of the shareholders’ approval as per Regulation 88(1) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘SEBI Regulations’), is 12 months, it is proposed to seek fresh approval of the shareholders in this regard,” the company said.

  • TDSAT bars Rajasthan MSOs from giving signals to 11 LCOs defaulting in Siti Cable payment

    TDSAT bars Rajasthan MSOs from giving signals to 11 LCOs defaulting in Siti Cable payment

    NEW DELHI: The Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) has directed that no multi system operator (MSOs) besides Siti Cable Network will be permitted to give signals to eleven local cable operators (LCOs) who were earlier members of the Rajasthan Cable Operators Foundation.

     

    While these eleven LCOs owe a sum of Rs 17.49 lakh to Siti Cable Network, the Foundation says that the LCOs are no longer its members.

     

    Earlier on 5 August, the Foundation said that these LCOs were its members but had failed to make payments to Siti Cable Network.

     

    TDSAT chairman Justice Aftab Alam and members Kuldip Singh and B B Srivastava said the cable operators represented by the Foundation including the 11 allegedly in default had been receiving uninterrupted supply of signals from Siti Cable in terms of the interim order passed by the Tribunal under which each of the LCOs was obliged to pay Rs 75 per subscriber per month, excluding of taxes. 

     

    As it is alleged that the 11 cable operators did not make payments in terms of the order, the Tribunal said, “It would be fair and reasonable to direct that they may not migrate to any other MSO without clearing Siti Cable’s dues in terms of the Tribunal’s orders or satisfactorily refute the allegation that they are in default.”

     

    Listing the matter for 26 August, the Tribunal therefore made it clear that until further orders, no other MSO apart from Siti Cable Network will supply any signals to the concerned 11 LCOs.

  • Registered MSOs for DAS areas touch 275 mark; cancellations total 29

    Registered MSOs for DAS areas touch 275 mark; cancellations total 29

    NEW DELHI: With less than six months for the completion of Phase III of Digital Addressable System (DAS) for cable television, the number of multi system operators (MSOs) who have been given permanent registration for a period of ten years is now 215.

     

    In addition, a total of 60 MSOs have been given provisional registration, while 29 MSOs have had their licences cancelled or their files have been closed.

     

    The number of MSOs getting permanent licences has gone up sizably since the list issued on 22 June put this figure at 191.

     

    While a majority of MSOs including Kal Cables have had their licences cancelled following the Home Ministry denying security clearance, some have been cancelled for non-operation. These include only four, which were cancelled in 2015.

     

    MSOs given permanent registration pan India after 22 June include Goldy Diginet of Rajasthan, Engineer’s Resource Associates India of Madhya Pradesh, Multireach Media of Kolkata, SHR Digital Networks of Delhi and Siti Cable Network Limited of Noida.

     

    The others are as follows: E-Cable Vision of Chhatisgarh to cover the Districts of Dhamtari, Charama, Kanker, Keskal, Konda Goan, Jagdalpur, Gidam, Dantewada, Kirndul, Nagarnar, Balod, Dalli Rajraha, Bhanupartapur, Mahasamund, Kurud and Nagri under Phase-lll & lV; Manair Digital Entertainment Networks for Telengana; Narmada Cable Network for Kareli and Narsinghpur Tehsils in Madhya Pradesh, Linkmen Services for West Bengal; Desh Entertainment for West Bengal Under Phase III & IV; Sai Digital Services for Andhra Pradesh and Telangana under Phase lll and lV; INSAT Cable Network for Sitara, Pune, Sangli, Solapur and Raigard/Sindu Durg Districts in Maharashtra; Mahapatra Dooradarshan Cable Network System for Ganjam District of Odisha; Raj Cable Network for Anuppur, Shahdol and Umaria District in Madhya Pradesh and Koria, Surajpur and Ambikapur District in Chhattisgarh, Baba Nanak Optical & Fiber in Punjab; Aurangabad Satellite Cable Service Centre for West Bengal areas; SM Cable for Pachpadra in Barmer District of Rajasthan; Diamond Cable Network for Bhandara, Gondia & Nagpur Districts of Maharashtra under Phase-lll & lV; Zaka Cable TV Network for Uttar Pradesh and Uttarakhand; One Digital TV Services in Nalgonda, Khamam, Warangal, Ranga Reddy & Mahaboob Nagar Districts under Phase lll & lV in Telangana; Bhagyalakshmi Communication Network in Rompicherla, Chinnagottigallu, Bakarapet, Sodam, Somala, Chowdepalle’ Kallur, Damal Gheruvu and Kalikiri in Ghittoor District of Andhra Pradesh; and Bhimavaram Community Network in West Godavari district of Andhra Pradesh.

     

    While there is no new addition to the northeast, one licence has been issued for Kashmir to J K Cable Network for Sopore, Baramula, Zainageer, Rafiabad, Bandipora, Handwara, Kupwara, Uri, Pattan, Tangmarg, Gulmdrg, Sumbal, Hajin, Narbal and parts of Srinagar. 

     

    While Kal Cables continues to be blacklisted by the Home Ministry, licences issued for Tamil Nadu are: Lucky Cable Vision which will cover area in all cities, towns, Town Panchayats, Village Panchayats of Pollachi (Taluka) Udhumalpet (Taluka), Palani (Taluka), Valparai (Taluka), Kinathu, Kadavu (Taluka) Phase III & Phase IV; and King Digital Network for Salem.

  • Siti Cable and Dish TV join hands to form ‘Comnet’

    Siti Cable and Dish TV join hands to form ‘Comnet’

    MUMBAI: Dr Subhash Chandra led Essel Group believes in innovation and how. The two companies from the group, multi system operator (MSO) Siti Cable Network and direct to home (DTH) player Dish TV have formed a joint venture (JV) to deal with the ever growing content cost. Christened ‘Comnet’, the JV will help synergise the strengths of both the organisations in dealing with broadcasters.

     

    Essel Group has synergies in broadcast, cable, DTH and over the top (OTT) services. “When we look at either of these platforms, the key to its existence is content. The cost of content today is increasing rapidly and at a pace with which even the connections in the market aren’t growing,” tells Siti Cable CEO VD Wadhwa to indiantelevision.com.

     

    According to Wadhwa, while the consumer average revenue per user (ARPU) levels is increasing in single digits, broadcasters, who sign one-year deals with distribution platforms, expect the revenues grow anywhere between 20-60 per cent. “This is impractical, unsustainable and is no way any business model will evolve or work,” he adds.  

     

    The reason both Dish TV and Siti Cable have come together is to be able to make the best use of each other’s advantages and disadvantages. While DTH doesn’t enjoy as much carriage as cable gets, when it comes to content deals, DTH platforms have an upper hand. “While my input cost, which is the content cost is growing at a fast pace, I am not being able to drive the market price. If consumer ARPUs remain low, we can’t allow the content cost to go up. Also considering both the platforms target the same set of consumers in the market, it made more sense for us to join hands to deal with broadcasters,” informs Wadhwa.

     

    Dish TV CEO RC Venkateish says, “This move will help both the entities to provide quality content at affordable price to consumers.”

     

    Both, the DTH and cable platform currently is unable to pass on the increased input cost to the customer. “And then there are the additional taxes. The Delhi government recently increased the entertainment tax from Rs 20 to Rs 40, not realizing that it is a price sensitive market. Neither the consumer nor the broadcaster is ready to take the burden of the increasing cost. In order to protect our business model and remain a consumer friendly company and comply with all the rules and regulations, we thought of coming together,” he says.  

     

    The JV will help the duo in not just controlling deals with broadcasters, but also in sourcing equipments. “Both Dish TV and Siti Cable need set top boxes. There are a lot of synergies if we work together,” he adds.

     

    Between Siti Cable and Dish TV, the two currently have more than 2 crore subscribers, which in the next two years, according to Wadhwa will go up to 4 crore. “If we are currently present in 2 crore households, we are talking of almost 9-10 per cent of India’s population. This gives us a lot of leverage,” he says.

     

    According to Wadhwa, while the broadcasters have already come together to work for the advantage of the broadcasting sector, the distribution platforms too need to work in a synergy. “While that is currently not possible, at least the two companies in the group should start working together immediately,” he opines.

     

    As part of the JV, the duo will hold joint discussions with broadcasters, taking joint call on the deals. “If the broadcaster wants to arm twist Siti Cable, it has to be careful that Dish TV may also react or vice versa,” he informs.  

     

    Starting 1 July, 2015, it is ‘Comnet’ that will do the negotiations with broadcasters for both the platforms together. Post that, a direct contract between the broadcaster and the distribution platform will be signed. “The benefit will be shared between Dish TV and Siti Cable,” concludes Wadhwa.