Cable TV

Digitisation has failed to show increase in ARPUs: Deloitte

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/cable_tv_images/2014/06/25/head99-watching-tv.jpg?itok=tG68BzXj

NEW DELHI: Although carriage fees saw a reduction of 15-20 per cent after the first two phases of digitisation, the delay in implementation of the various phases of digitisation means the promised jump in subscription revenues and average revenue per user (ARPU) has not materialized.

The recently launched Digitization and Mobility: Next frontier of growth for M&E, report by Deloitte states, “One year into the implementation of digitisation, the cable and broadcast sector is still trying to iron out creases and get systems in place. The key goal of digitisation was addressability, which was expected to plug leakages in the system. While cable subscribers have been increasing, rampant under-declaration meant, Multi-System Operators (MSOs) that transmitted the signals to cable operators earned little from the large subscriber base.”

In 2014, Deloitte predicts that the digital TV distribution space – both digital cable and Direct-to-Home (DTH) would find ample room for growth given the catalysing effect of digitisation and the headroom for growth provided by non-TV households in the country.

The report prepared for the ASSOCHAM annual M&E meet says about 12 million set-top boxes have been seeded and 80 per cent consumer application forms have been received as of December 2013. The Telecom Regulatory Authority of India (TRAI) claims 100 per cent digitisation in DAS phase II.

TRAI has also said recommendations on the new DTH licences would be brought out very soon.

HITS licenses which have been issued to two players, is expected to enable digitisation in phase III and phase IV markets.

Meanwhile, the report notes, “Complaints have poured in against set-top boxes. People in the city are complaining about digital set-top boxes installed in their houses and offices. Visual and sound disturbances coupled with channels going off air from time to time have left viewers unhappy.”

It also notes that “in the haste to install set-top boxes in the city, cable operators have overlooked a crucial step - that of filling in the Cable Access Form (CAF) before installation of the device. The purpose behind mandating DAS was to identify the actual number of cable viewers in the country. But with most customers not filling in the form, the purpose still remains defeated.”

“With penetration of TV in India standing at approximately 65 per cent, at present, the country has close to 80 million non-TV households, which presents a key opportunity for the television distribution players. This low level of penetration holds a great potential for players to increase their subscribers and revenues. Drivers such as rising incomes, decreasing household size, multi TV phenomenon and rising urbanisation would only provide a further fillip.”

Noting that the government’s digitisation mandate is “slowly but steadily progressing towards its target,” the report says the television distribution space is abuzz with prospects, albeit it would call for investments and improvements, especially from the digital cable players. All metros except Chennai have been largely digitised and the phase II of digitisation, which covers 38 cities, is also nearing completion. Phase III and IV of digitisation targets December 2014 for their completion. This would mean digitisation of additional 40 to 50 million households in the balance towns.”

The report also says that phase III aims to focus on digitisation of all urban areas (municipal areas). Given the extensive coverage of MSOs and LCOs in such areas, digital cable is expected to make the most in the relatively densely populated areas, notwithstanding the churn of subscribers to DTH. In the first phase of digitisation, DTH operators were able to grab 20 per cent of subscribers converting them from analog to digital.

Phase IV aims to focus on digitisation for the rest of India, which predominantly aims at rural areas and tier II cities. DTH is expected to gain the most in areas with sparse population and inadequate cable infrastructure.

Digitisation phases, scope and affected subscribers

Digitisation phase               Scope                                        Subscribers affected (million)

Phase I                            Delhi, Mumbai, Kolkata, Chennai        8-10

Phase II                           All cities with population > 1 million   12-14

Phase III                          All urban areas (Municipal areas)        30-35

Phase IV                         Rest of India                                               22-25

Source: Industry discussions

DTH, as a sector, had started off by concentrating on rural areas, which were deprived of cable infrastructure and gradually also entered the urban markets. However, they are still strong in rural markets.

Given the complexity of the exercise across the country and the rate at which television penetration is growing (MPA expects India to have 183 million pay-TV homes by 2020); the scale of undertaking of digitisation will be a big challenge.  

But it says analysts and sector professionals agree the future looks promising with the lessons learnt from phases I and II.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/17/Navjot%20Singh%20Sidhu-800x800.jpg?itok=YP6R6Z6-
Sidhu's cable, DTH tax plan gets Punjab cabinet nod

MUMBAI: Entertainment lately seems to be affected the most with one tax after another -- the GST and tax on watching television programmes. Now, in a ‘blow’ to local cable network companies, entertainment tax will be levied on DTH and cable connections in Punjab. DTH operators however will now...

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/09/damani_0.jpg?itok=Wwiy4T08
Digital cable federation AIDCF secy-gen Saharsh Damani quits

Saharsh Damani has decided to move on and put in his papers as the founder secretary-general of the All-India Digital Cable Welfare Federation. However, his resignation will be effective by October-end.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/05/Tact-TV-Story%20%282%29.jpg?itok=G5xAhXGF
Arasu digital STB costs Rs 200, govt alerts subs

MUMBAI: Government authorities in Tamil Nadu are announcing the basic rate of installing a new STB following complaints by subscribers of the state-owned Arasu Cable TV Corporation that cable operators are charging them around four times the cost. Tirupur operators are reportedly threatening to...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/04/sameer.jpg?itok=XPlIjouw
Hathway Bhawani MD and CEO Sameer Joseph quits

Hathway Bhawani Cabletel and Datacom’s managing director and CEO Sameer Joseph has resigned with immediate effect, that is, 4 October, 2017.

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/04/Arasu-TV.jpg?itok=GqF-esJ5
Post-DAS, tardy MSO registrations in six months, 14 new additions

NEW DELHI: Despite the fact that it is more than six months since the country adopted digital addressable system (DAS) for cable television, the number of multi-system operators (MSOs) has risen by meagre 14 over the last two months to reach 1469 as on 30 September 2017.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/10/02/Arasu-TV.jpg?itok=-XFAPOo_
TN advisory: LCO licences may be cancelled if they bully Arasu subs into buying STBs

MUMBAI: A Tamil Nadu state advisory has informed subscribers of Arasu Cable not to pay money to the local cable operators (LCOs) for set-top boxes (STBs) which are actually being provided to all for free.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/28/shaji.jpg?itok=VYoKLi8D
Shaji Mathews appointed as Kerala MSO KCCL CEO

MUMBAI: From Gujarat, where he helped steer MSO GTPL towards its IPO, he is now headed back to his home city of Kochi in Kerala. Shaji Mathews has been appointed as the CEO of Kerala Communicators Cable Ltd (KCCL), a leading cable TV and broadband network in Kerala which is a consortium of...

Cable TV People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/26/Tact-TV-Story.jpg?itok=fKW9Xc6J
MIB asks Arasu: Give proof of analogue switch-off

NEW DELHI: The Tamil Nadu Arasu Cable TV Corporation (TACTV), which had early this month claimed to have gone digital, has been asked to “confirm that you have already switched off analogue signals and are carrying only digital encrypted signals on your cable TV network.” In a letter to TACTV...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/09/22/Mihir_Shah.jpg?itok=l_0InXUO
Indian pay-TV expanding by 10.6 pc, 77 pc to be digitised, ARPUs to rise by '22: MPA

MUMBAI: Pay-TV players in Asia-Pacific region are girding up their loins to integrate online video into their service bouquets and recalibrate owing to broadband growth while concentrating and scaling up their investment on premium content as they stare at competition

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories