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Tag: WWIL

  • MSOs on prowl, Incablenet to support Home Cable in Delhi

    MSOs on prowl, Incablenet to support Home Cable in Delhi

    MUMBAI: Conditional access system (Cas) is forcing multi-system operators (MSOs) to strike alliances as they take up the challenge of expanding their digital subscribers.

    The latest to join hands is Incablenet and Vikki Choudhry’s Home Cable Network. Incablenet will be supplying its feed and digital set-top boxes (STBs) to the subscribers of Home Cable Network in South Delhi.

    “We have entered into a strategic alliance with Incablenet. They will be providing STBs to our subscribers. For those consumers who want to take our advanced boxes which are priced at Rs 2150, we will be providing them our systems. Others will have an option to take the Incablenet STBs,” says Choudhry.

    Incablenet uses a different encryption system and its boxes will not support the feed from Home Cable Network. “We have agreed to share each others fibre and infrastructure as we go ahead,” says Choudhry.

    Incablenet offers subscribers digital STBs at Rs 1500 (plus taxes) while cable TV subscription is free for six months on three bouquet packages. Home Cable, on the other hand, has an outright purchase scheme with the STB priced at Rs 2150. It offers 10 pay channels on a monthly subscription fee of Rs 45 while the 60-channel package is available for Rs 225.

    “Smaller MSOs in the Cas areas will find it difficult to subsidise the boxes and will take support of the bigger ones. Besides, they do not have enough boxes and know that any delay will mean that their subscribers will go away to other available options,” says an analyst who tracks the cable industry.

    Earlier, Wire & Wireless India Ltd (WWIL) had expanded its footprint in Delhi by acquiring a 51 per cent stake in Satellite Channels and signing up with Spectranet and Sanjay Cable Network for supplying digital services.

    In Kolkata, Sristi Broadband takes the feed from Manthan Cable Network. A group of operators of Sristi Cable TV are using the feed from Mathan and Zee’s Indian Cable Net as it could not make arrangements for STBs.

    “Sristi Broadband and a group of operators from Sristi Cable are taking feed from us,” says Manthan director Gurmeet Singh. Manthan has recently introduced a package for the second TV set where subscribers will have to pay Rs 90 a month for 50 pay channels. Manthan’s STB costs Rs 2599.

  • WWIL, Zee News begin trading; price range as per market expectations

    WWIL, Zee News begin trading; price range as per market expectations

    MUMBAI: The debut performance of Wire & Wireless India Ltd (WWIL) and Zee News Ltd (ZNL), Zee Group’s demerged entities, on the boursess was along market expectation lines.

    Though WWIL, the cable distribution company, opened at the BSE much lower at Rs 80, it inched up to touch a high of Rs 139.80 before closing the day at Rs 120.80. Putting their faith on digitalisation, analysts had predicted the scrip to trade in the region of Rs 120-140.

    ZNL, on the other hand, opened higher at Rs 50 even as the market had expected it to be valued at Rs 35. The scrip touched a high of Rs 58.85 before tapering off to a low of Rs 33.65 and closing Wednesday’s trading at Rs 34.40.

    Speaking to a business channel, Zee Group chairman Subhash Chandra said WWIL would touch a revenue of Rs 10 billion in 12 months but the company would still not be profitable as it is in an investment mode. The multi-system operator (MSO) has already seeded 155000 set-top boxes (STBs) in the Cas (conditional access system) areas, enjoying a 50 per cent market share.

    ZNL should end the current fiscal with a revenue of Rs 1.8-2 billion and the target in five years is to have a turnover of around Rs 10 billion, Chandra said. The company is planning to launch a Marathi news channel this month.

    Meanwhile, another media and entertainment company listed on the bourses today. Shree Ashtavinayak Cine Vision closed at a premium of Rs 228, or 42 per cent higher from its IPO price.

  • SC reserves order in Sea vs Star case

    SC reserves order in Sea vs Star case

    NEW DELHI: The Supreme Court today completed hearing arguments from both sides, Star TV and Sea TV, a franchise of WWIL, on the question of whether an a broadcaster’s agent could also be an MSO, and reserved its orders.

    The parties concerned have been asked to file written submissions within a week.The case relates to Sea TV, a WWIL franchise MSO based in Agra, which had requested signals from Star.

    However, Star had asked Sea TV to take the signals from one of their agents, Moon TV. It is then that Sea TV had pointed out that Moon TV is actually an MSO in competition with it, and had filed a case in the TDSAT, asking whether a broadcaster’s agent could also be an MSO.

    The TDSAT had earlier last year ruled against Star , who had then filed an appeal with the Supreme Court.

    The court heard the final arguments for two days over lengthy sessions, and reserved its orders.

  • FTA subscription sharing: TDSAT for expanded review by Trai

    FTA subscription sharing: TDSAT for expanded review by Trai

    NEW DELHI: The Telecom Disputes Settlement Appellate Tribunal (TDSAT) has sent back the case related to MSO’s demanding a share of the Rs 77 for FTAs to be paid by consumers under the Cas regime, for an expanded review by the Telecom Regulatory Authority of India (Trai).

    The tribunal, in its order issued yesterday, said that the process would have to be completed within six weeks.

    According to the TDSAT, since the case is of great importance and has wide repercussions, Trai should also incorporate the views of all stakeholders, including those of the cable operators.

    Wire and Wireless India Limited (formerly Siticable) had filed the case against the 31 August, 2006, order by Trai, giving to the cable operators the entire Rs 77 that consumers pay for Free-to-air channels under the Cas regime.

    “We said that if this is done under the Cas regime, the Rs 75-odd in fees that we get for carrying pay channels will not even cover our variable costs, let alone overheads,” Arvind Mohan, vice president, WWIL, told Indiantelevision.com.

    In the court the WWIL counsel proffered his logic, stating that Trai had said that while cable operators could keep the Rs 77, MSOs could keep the subscription from pay channels, as well as the carriage fees.

    However, the subscription for the pay channels would also be shared between MSOs and LMOs as well as broadcasters, as per a Trai formula.

    ‘Carriage fees’ are the amount charged by MSOs for carrying a certain pay channel in the ‘prime band’ or ‘colour band’, that is, special, viewer-preferred slots. This was applicable when the channels were streamed in the analogue system, because in that system, the number of channels would be limited to a maximum of 60.

    Under the Cas system, where digitalisation is compulsory, the number of channels shown can be innumerable, theoretically, and not less than 600, or 10 times that under the analogue system.

    WWIL argued today that Trai itself had gone on record that ‘carriage fees’ are a temporary phenomena and would disappear under the Cas regime, because the carrying capacity would shoot up from 60 to at least 600. Hence, the MSOs would lose that avenue of revenue.

    Trai argued that sharing of the FTA purse would lead to disputes and hence it had opted for a simple formula that MSOs could keep the carriage fees and the cable operators could keep the Rs 77 from the consumer subscription for FTAs.

    The tribunal, however, felt that he matter was seminal and the views of all the stakeholders need to be incorporated, and asked Trai to file the response of the views of all parties concerned within six weeks.

    Incidentally, this is the second time in two weeks that TDSAT has asked Trai to review aspects of an important case. The first was last week when TDSAT asked Trai to give their views on transponder capacity issue after examination of the facts. That case too, had been filed by Siticable, now known as WWIL.

  • Trai warns some MSOs against analogue streaming in Cas areas

    Trai warns some MSOs against analogue streaming in Cas areas

    NEW DELHI: The Telecom Regulatory Authority of India (Trai) has warned all the MSOs that strict action would be taken against anyone beaming analogue signals in Cas (conditional access system) areas.

    This was informed to the MSOs at a meeting at Trai office on Friday. Trai said that this would have to be stopped with immediate effect, as it went against the law. Trai advisor Rakesh Kakkar told indiantelevision.com that the the regulator would come down with a heavy hand on anyone beaming analogue signals, as has been happening in some cases.

    Trai took stock of the ground situation regarding the availability of set-top boxes (STBs) and was reportedly convinced that there is no real shortage, but there is some delay in actual deployment due to the last minute placement of orders by subscribers.

    The MSOs also stated their positions about how many STBs have been deployed and how many are being imported. Reportedly, most MSOs are going for airlifting of STBs next week.

    Kakkar said that there was no shortage of STBs, but because of bunching of applications by consumers, there is problem with deployment. He added that there are some technical problems due to lack of stabilisation because of a sudden rush of orders for boxes in a short period.

    There are reports that customers are not getting channels as per the rules, and though the streaming is digital, no bouquet or a ala carte choice is available at the moment. In fact, Kakkar asked: “You must be getting the same channels through the Cas boxes as you did without Cas isn’t it?” That is because of the rush and customers not filling their forms in time, and also because the boxes given out in the initial rush were all preset, he explained. This will change soon, he added.

    MSO sources said also that they assured that there are enough boxes. One representative said that his company’s seeding is already 9,000 boxes a day. Incablenet representative Ashok Mansukhai said: “We have told Trai that our deployment would reach 10,000 boxes per day. We will be airlifting boxes from next week.”

    Wire & Wireless Ltd is also getting in additional boxes. “We have deployed 1.5 lakh boxes across the three metros over the past five days. We are going for airlifting of new boxes. By next week we will have 50,000 more boxes brought in, and by 31 January, we shall have additional 1.5 lakh boxes in position for deployment. This is apart from the 34,000 boxes awaiting clearance at Mumbai airport and another 12,500 boxes at Kolkata airport,” said WWIL executive vice president Arvind Mohan.

  • HTMT to prefer strategic investor in demerged media firm

    HTMT to prefer strategic investor in demerged media firm

    MUMBAI: Hinduja TMT has initiated talks and would prefer inducting a strategic rather than a private equity investor into its demerged media company.

    The possibility of roping in an investor would be only after the listing of the two entities. The demerger process is underway and a listing is expected by February-end after the restructuring process gets the necessary regulatory approvals.

    “We would prefer to go with a strategic rather than a private equity investor. We feel inputs from a strategic partner would give us a competitive edge,” said IndusInd Media and Communications Ltd (IMCL) director-in-charge Ravi Mansukhani.

    On being queried as to whether global major Liberty was in talks, Mansukhani said “there were a bunch of them” who were interested in India’s cable story. “All investors are waiting for conditional access system (Cas) to roll out before they come with definite valuations,” he added.

    Unlike Zee’s Wire & Wireless Ltd (WWIL) which is keen to acquire 51 per cent in cable networks, IndusInd Media and Communications Ltd (IMCL) is adopting a different business plan where it wants to partner rather than buy out operators.

    The Hinduja Group, which operates its cable TV business under Incablenet brand, is planning to offer cable TV operators a share in the demerged media company based on the subscribers they declare. No decision has been taken as to the exact ratio that would be on offer.

    “Our expansion plan includes offering shares in HTMT (after demerger) to operators as they form an integral part of our distribution chain. Our idea is to partner with the local cable operators rather than buy them out,” said Mansukhani.

    HTMT is unifying its media subsidiaries under one umbrella while spinning off its IT/ITES business into a separate entity. As part of the restructuring, In2Cable (subsidiary which is into broadband business) and InNetwork Entertainment (content) are being merged into IMCL (cable TV distribution under Incablenet brand). The parent company for the consolidated media business will be HTMT (an existing listed entity). The demerged IT/ITES entity will be listed under HTMT Technologies.

  • WWIL announces Rs 1800 package for Cas

    WWIL announces Rs 1800 package for Cas

    NEW DELHI: Wire & Wireless India Ltd has come out with a price package that it believes will lure consumers to digital cable under Cas (conditional access system).

    The multi-system operator (MSO) is offering an own-your-own set-top box (STB) plus a year long access to at least 100 channels, a minimum of 25 of them being pay channels, for just Rs 1800. This scheme will be available only for those who are subscribing within 31 January, says WWIL CEO Jagjit Kohli.

    For those willing to settle for just the service of 100 channels, but not own the boxes, the option is to go for the Rs 600 per annum (Rs 50 per month) scheme. Rental on the boxes will be an additional cost.

    Consumers in both the schemes will have to pay taxes and Rs 77 for the free-to-air (FTA) channels.

    The bouquet, however, does not have any of the sports channels. For access to any additional pay channel the subscribers would have to pay the Trai-fixed charge of Rs 5. WWIL executive vice president Arvind Mohan of Siticable told indiantelevision.com that not even Ten Sports would shown as part of the Rs 600 bouquet.

    Asked how many of Star, Set and Zee channels respectively would form the bouquet, Mohan said that the details were being worked out.

    WWIL is also immediately launching its Cas-enabled GalaxZee boxes in non-Cas cities.

    “There is a feeling that the analogue will stay for a long time in India. The popular perception is that India being a poor country and technologically backward, so digital would take a long time to take off. But even we are surprised to see at what massive pace digital is taking off in the country,” Kohli said.

    Bangalore, Hyderabad and other cities are witnessing the highest demand for digital services, he added. In these cities, physical headends would be set up for the box operations even before HITS arrives.

    The special GalaxZee STBs have on offer various facilities, apart from the normal TV services, and updated boxes with facilities matching those offered by any DTH service provider. The updated boxes would cost Rs 1,499, but the customer can exchange the old boxes for the new paying the additional cost of Rs 299.

    GalaxZee is using digital technology of Scopus for its digital headends, encryption technology from Conax and STB from Handan.

    “We are aware that the average Indian user is not tech-savvy, so we told the architects of the boxes to make them user-friendly,” Kohli said.

    It is much cheaper than the DTH boxes, he stressed and added: “Whatever channels DTH operators offer are fixed for across the country. We, however, have the option of adding whatever channels we want to depending on which city we are operating in, especially the popular regional language channels and also the local cable channels. And even the local channels would be digital.”

    Besides, for multiple TV sets in one household, GalaxZee is offering FTA in all the additional sets at no extra cost, “but in DTH system you would have to pay for every additional TV set”.

    The value added boxes, which are likely to come after a few months, will have internet, online games and phone on demand. GalaxZee will also offer DVR (digital video recording).

  • ‘Cable ARPUs in Cas areas to touch Rs 400 in five years’ : Jagjit Singh Kohli

    ‘Cable ARPUs in Cas areas to touch Rs 400 in five years’ : Jagjit Singh Kohli

    Subhash Chandra is betting big on his cable TV business. Wire & Wireless Ltd (WWIL), the demerged entity of Zee Group, plans to invest Rs 7.14 billion over two years. A major chunk of this will be consumed by set-top boxes (Rs 3.28 billion) and customer acquisition (Rs 1.14 billion) as he attempts to hold grip in the distribution business.

     

    When WWIL gets listed sometime in January-February, investors will have a touch and feel of the valuation that cable business will enjoy in the digital era.

     

    Launching the aggressive drive, WWIL CEO Jagjit Singh Kohli says he has ramped up 250,000 customers at an average valuation pegged at Rs 2000 per subscriber. The ambitious target in year five: 9.6 million.

     

    In an interview with Indiantelevision.com’s Sibabrata Das, Kohli elaborates on the steps WWIL is taking to emerge as a leading multi-system operator (MSO) with plans to launch Headend-In-The-Sky (HITS) and STBs that have internet and VoIP (Voice over Internet Protocol) capabilities.

     

    Excerpts:

    Is WWIL close to roping in a strategic investor?

    We are in talks with both strategic as well as financial investors. They have shown interest in our business. We would go with anybody who gives us the maximum valuation.

    What is the valuation WWIL is now getting?

    The investors are discussing of valuations in the range beyond $600 million. Our expectations are higher. We are likely to get listed by mid-January or early February. The true valuations will come out then.

    Are investors valuing the cable TV business based on the number of subscribers or future revenues?

    In India, it is too early for a subscriber-based valuation. Investors are using the discounted cash flow method. The valuations are obviously based on our future target of touching 9.6 million subscribers. There are two reasons why we will get valued more: we are doing Headend-In-The-Sky (HITS) and we are using set-top boxes (STBs) designed by Pacenet which will offer multiple usages like internet and VoIP (Voice over Internet Protocol).

    MSOs will have to make major investments on STBs. Is it going to comprise as high as 46 per cent of your overall investments?

    We are planning to invest Rs 7.14 billion in the business over two years. For STBs, our fund requirement could be Rs 3.28 billion. We are planning to pump in Rs 2.21 billion towards hardware. Another area where we will be aggressive is customer acquisition. We plan to put in Rs 1.14 billion for this.

    What is the debt to equity ratio and how are you meeting the initial fund requirement?

    The ratio will be firmed up once we know the price WWIL quotes after getting listed in the exchange. That in a way will determine how much debt component we would require to raise. Our initial fund requirement is Rs 5 billion. We have lined up a debt of Rs 2.15 billion. We have already got Rs 500 million from Infrastructure Development Finance Corporation (IDFC).

    WWIL is on a drive to acquire customers. What is the price of acquisition?

    We are offering to cable operators a valuation of Rs 2000-3000 per subscriber. While WWIL will be a 51 per cent partner, the balance 49 per cent will be with the operators. We have already ramped up 250,000 subscribers in recent months through aggressive acquisitions.

    What is the average valuation for acquiring 250,000 subscribers?

    The average valuation works out to Rs 2000 per subscriber.

    Won’t you have to handle too many operators by doing JVs with them?

    We are making proposals to networks with decent size. In Mumbai, for instance, 12 local operators are creating a company and entering into a JV with us. We want to reduce the number of JVs. Otherwise, it will be impossible to manage.

     

    In some of our acquisition models, we make MSOs buy out the local cable operators.

     

    We have set a target of ramping up our direct subsciber base to 9.6 million within five years. We expect 7.6 million to receive digital cable. Our aim is to have 4.4 million through our own digital cable service and an additional 3.2 million through our HITS platform. We will have two million through analogue acquisitions. We have expanded operations from 35 to 43 cities. We plan to be in 66 cities in three years.

    WWIL has a thin presence in Mumbai. Even in the lucrative market of South Mumbai, which is a Cas notified area, you have a negligible presence. What are you doing to correct this?

    We have linked up optic fibre and have commissioned a digital headend a few days back at Worli. We will be in the Cas notified area of south Mumbai and several operators from rival MSOs are joining us. We have acquired control over 5 Star which operates in Andheri, a western suburb of Mumbai. We have also poached a few operators from Incablenet in Andheri East and others from rival MSOs are joining us.
    ‘The average valuation of acquiring 250,000 customers works out to Rs 2000 per subscriber.‘

    How are you expanding your footprint in Delhi?

    In Delhi, we have acquired a 51 per cent stake in Satellite Channels. We have also signed up with Spectranet and Sanjay Cable Network. All these MSOs were disqualified for Cas as they were found not ready by the Telecom Regulatory Authority of India (Trai) for making the switchover to addressable system by 31 December. As for Kolkata, we are very much a dominant player after buying out Indian Cable Net (formerly RPG Netcom), a leading MSO, in May 2005.

    What is the price of the STBs?

    While the cost of the basic box is Rs 2000, the one with internet is Rs 2500 and internet plus VoIP Rs 3000. Customers can enjoy interactive games and online share trading through this. We are looking at a monthly fee of Rs 70 for internet and Rs 75-100 for movie-on-demand. Subscribers will have to pay Rs 1499 as deposit and Rs 45 as monthly rent. We haven’t, though, arrived at the final pricing. We plan to introduce the internet-enabled boxes after two months and those with VoIP sometime in April.

    Who are your STB vendors?

    We have Korean and Chinese vendors who will be supplying us the boxes. We have also ordered 200000 STBs from Bharat Electronics Limited (BEL).

    Earlier, in 2003 when Cas was to be introduced, Pacenet had ordered STBs from TVS Electronics. Why haven’t you included them in the list?

    We are also considering them. But at this stage it makes more business sense to import the boxes.

    Were you doing some tests with BSNL for VoIP?

    We were testing out whether our technology would work on BSNL’s network. The tests were successful.

    Is WWIL serious on launching a HITS platform or is it a mere hype?

    We are going to do HITS and have expressed our intent to broadcasters. This will provide us a national footprint and hasten the pace for digitisation in the country. We can tap cable operators even in places where WWIL has no presence. We have booked four transponders on Thaicom satellite with effect from 1 January, with the option of taking three more. We plan to launch HITS before the end of February.

    Do you see ARPUs (average revenue per user) falling in a Cas regime?

    For one year, it may come down. Let us not forget that cable TV rates have been suppressed for artificial reasons for too long. But by deploying STBs, this scenario is going to change. We may start off with an ARPU of Rs 250 per month, but like in case of cinema theatres with the launch of multiplexes, this will go up. By year five, we may be looking at ARPUs in the region of Rs 400.

    Hathway Cable & Datacom has come out with bouquet packages along with the a la carte choices. Will you offer something similar?

    We will be introducing a combo package where consumers who buy STBs on outright purchase and take annual subscription will be offered an attractive subsidy. This scheme will make available 100 TV channels. We will be offering under this at least 20 pay channels. We will be subsiding the boxes.

    Unlike DTH, broadcasters will have to make their pay channels available on an a la carte basis at a maximum rate of Rs 5 on cable networks in Cas areas. Will this mean that they will do content deals where they give their bouquets to MSOs at lower cost than to DTH service providers? Otherwise, MSOs can create bouquets picking and choosing the best channels and dumping the weaker ones in the bouquet.

    Yes. If broadcasters don’t do that, they will always be faced with the dilemma that the MSOs can pick and choose the stronger channels in their bouquet while ignoring the rest. The other reason why we should get better costs than DTH is because we have to share the revenue with the distributors and local cable operators across the value chain.

    How does cable compare with telecom operators in triple play service?

    Indian cable systems are ready to do telephony. They have pipes already laid including ethernet. The cable architecture throughout the country is in a position to provide triple play. All that is required is the box and IP can provide the return path for voice, data and interactive services.

     

    The public sector telcos, on the other hand, require strong compression technologies and ADSL2+ signals are good only for distances up to 1.5 km. The private sector telcos do not have a system suitable for large scale deployment and will require a high capital cost of $300 per line, even if we take the fact that their network is ready for IPTV (which is not the case). IPTV could have happened in markets where ARPUs are high. But India is not a high ARPU market.
  • WWIL lines up Rs 2 billion debt, rebrands digital cable as Galaxzee

    WWIL lines up Rs 2 billion debt, rebrands digital cable as Galaxzee

    MUMBAI: Zee Network’s Wire & Wireless India Ltd. (WWIL) is in the process of lining up a debt of Rs 2 billion for funding its digital initiatives and acquisition of cable operators.

    “We have already got Rs 500 million from Infrastructure Development Finance Corporation (IDFC). We are already in the process of tieing up a debt of Rs 2 billion,” WWIL CEO Jagjit Singh Kohli tells Indiantelevision.com.

    The company plans to invest Rs 7.40 billion over two years and Rs 8.50 billion within five years. “The debt to equity ratio will be firmed up once we know the price it quotes after getting listed in the exchange by February-March 2007. That in a way will determine how much debt component we will require to raise,” Kohli says.

    The company is in talks with strategic and financial investors but conclusive agreement will take place only after the listing. “We are not necessarily looking at a strategic investor. We want somebody who will give us the maximum valuation,” Kohli says.

    WWIL, the de-merged entity of Zee Telefilms’ cable TV business, has set an ambitious target of ramping up its direct subsciber base to 9.6 million within five years. “We expect 7.6 million to receive digital cable. Our aim is to have 4.4 million through our own digital cable service and an additional 3.2 million through our Headend-In-The-Sky (HITS) platform. We will have two million through analogue acquisitions,” says Kohli.

    WWIL claims to have added 250,000 subscribers in recent months through aggressive acquisitions. The multi-system operator (MSO) has also expanded operations from 35 to 43 cities. “We plan to be in 66 cities in three years,” Kohli says.

    WWIL will deploy several models of set-top boxes (STBs) aimed at various subscribers. Apart from the basic box, it plans to introduce a STB which will enable internet facilities on TV. “Customers can enjoy interactive games and online share trading through this. We are looking at a monthly fee of Rs 70 for internet and Rs 75-100 for movie-on-demand. Subscribers will have to pay Rs 1499 as deposit and Rs 45 as monthly rent. We haven’t, though, arrived at the final pricing. We plan to introduce these boxes after two months,” says Kohli.

    The basic STB is available on a refundable deposit of Rs 250 and rent of Rs 45 per month or a refundable deposit of Rs 999 with a monthly rent of Rs 30.

    WWIL will also deploy a STB through which it can offer VoIP (Voice over Internet Protocol) sometime in April, according to Kohli. The MSO is also poised to offer HITS which will enable it to tap cable operators at a national level even in places where WWIL has no presence, he adds.

    GalaxZee will be the brand under which WWIL will offer its digital cable service. “We have commissioned a digital headend two days back at Worli. We will be in the Cas (conditional access system) notified area of south Mumbai and several operators from rival MSOs are joining us,” Kohli says.

  • WWIL in drive to acquire LMOs

    WWIL in drive to acquire LMOs

    MUMBAI: Wire & Wireless India Ltd (WWIL), the cable outfit of Zee Network, is on a drive to acquire last mile operators. The company is offering to cable operators a valuation of Rs 2,000-3,000 per subscriber. While WWIL will be a 51 per cent partner, the balance 49 per cent will be with the operators.

    “We want to expand the size of our network. We are making proposals to operators with decent size where we become partners with 51 per cent,” says WWIL CEO Jagjit Kohli.

    WWIL has acquired control over 5 Star which operates in Andheri, a western suburb of Mumbai, adds Kolhi. “We have also poached a few operators from Incablenet in Andheri East and others from multi-system operators (MSOs) are going to join us.”

    WWIL, which doesn’t have a presence in South Mumbai, is also targeting operators in that area. The MSO has linked up optic fibre and is keen to start operations in this lucrative part of the Mumbai market. The government has notified south Mumbai as the area where CAS (conditional access system) will kick off on 1 January.

    WWIL is also planning to launch a headend-in-the-sky (HitS) platform and has expressed its intent to broadcasters. “We are going to do HITS. This will provide us a wider footprint and hasten the pace for digitisation in the country,” says Kohli.

    The buzz in the market is that WWIL is booking seven transponders on Thaicom 5 for the HITS operations. When queried on this, Kohli declined to comment.

    The problem with HITS, however, is that broadcasters are reluctant to get into agreement with MSOs for providing their channels due to fear of piracy.

    Even as WWIL sweetens its proposals to rope in last mile operators, it remains to be seen how big the impact will be in the cable TV industry. If migration from rival networks take place, it will set the pace for a fresh bout of price and dirty wars on the ground. As Hathway Cable & Datacom managing director and CEO K Jayaraman had told Indiantelevision.com earlier in an interview: “As far as poaching of operators go, it is an open ground. Cable companies who focus on good service and have capital to create capacity will turn out winners. Competition is not a one-way street.”