Technology

Top 3 MSOs need Rs 5.5 bn to fund first phase of digitisation

MUMBAI: The top three listed multi-system operators (MSOs) will require a funding of Rs 5.5 billion in the first phase of digitisation but expect their business models to strengthen due to a massive jump in subscription revenues.


Hinduja-controlled IndusInd Media & Communications Ltd (IMCL) is looking at investing Rs 2.5 billion while Den Networks will require Rs 2 billion. Hathway Cable & Datacom, which has already seeded two million set-top boxes (STBs), will need Rs 1 billion to digitise one million homes.


IMCL will borrow Rs 2 billion even as it plans to seed two million STBs in Delhi and Mumbai. "We have already seeded 0.5 million boxes. We have an investment plan of Rs 2.5 billion in the first phase of digitisation, out of which we will take Rs 2 billion as debt. We will need 1.3 million STBs in Mumbai and 700,000 in Delhi. We also plan to expand in Kolkata where we have a licence to operate but have no presence yet. We could look at making an acquisition in that market," said IMCL MD and CEO Ravi Mansukhani.
 
The Cabinet today cleared the proposal for an ordinance to commence work on digitisation of cable television to meet the 31 March 2012 deadline in the four metros.


Den Networks president, strategy and business development MG Azhar feels that execution rather than funding will be a challenge for the MSOs. "We are sitting on a cash of Rs 2 billion and have lined up debt of Rs 2 billion," he said.


Den has ordered for two million STBs, in addition to 500,000 that is already lying with it. "Our backend infrastructure is in place as we knew that the government is going to mandate digitisation. We will require to seed 1.5 million STBs in Delhi and 700,000 in Mumbai. We have recently acquired a small network in Kolkata and will need to service that market too," said Azhar.


Hathway will need one million STBs for the Mumbai and Delhi markets in the first phase. In Kolkata, it has a presence through its joint venture company, Gujarat Telelinks Pvt Ltd (GTPL), which acquired a 51 per cent stake in Kolkata Cable and Broadband Pariseva. 
 
Hathway expects its revenues to jump 2.5 times in the fully digitised markets. "Our subscription revenues would go up much higher but there would be a drop in carriage income. We feel the carriage revenue will shrink by 70 per cent in these markets. Along with a revenue share with the cable operators, our Ebitda should be at 20 per cent. Dovetailed with broadband Ebitda, we should have an Ebitda of 25 per cent in the first two years of digitisation," said Hathway Cable & Datacom managing director and CEO K Jayaraman.


Den expects its revenues to grow by four times. "We expect our subscription revenues to jump by 8-10 times after full digitisation. We do not expect any drastic fall in carriage revenue if we are able to hold our ground. Our Ebitda should be at around 35 per cent," said Azhar.


Mansukhani warns that cable TV companies could be at a disadvantage if certain issues are not addressed. "Digitisation can‘t work without the entire Trai recommendations, including fiscal incentives, being passed. Pricing of channels for digital cable and revenue share should be defined. Unlike DTH, the cable TV chain has intermediaries like distributors and the local cable operators," he said.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/16/divesh.jpg?itok=WN0NPBYn
Livestreaming App SWOO sees momentum in India; Launches Trivia Format in India

SWOO, a leading global livestreaming platform established in Middle East, today announced the launch of its SWOO TRIVIA SHOW – a celebrity hosted live video streaming game show for Indians. SWOO is a user friendly, engaging and feature-rich live broadcasting app available across Android/ iOS/ Web...

Technology Software Applications
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/14/TiVo-800.jpg?itok=XNFEcfVQ
TiVo exits STB business

MUMBAI: TiVo is exiting the manufacturing, sales and distribution of set-top boxes to a yet-undisclosed third party, the company has said.

Technology Hardware Set-top Boxes
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/09/iot.jpg?itok=aq6Nc5eG
IET India IoT Panel joins hands with exhibitions india group for the 3rd edition of IoT india congress

IoT India Congress is India’s Platform of Platforms for the Internet of Things conceptualized by IET India IoT Panel, a think tank constituted by the Institution of Engineering and Technology (IET) India. The 3rd edition of IoT India Congress will be hosted in collaboration with India’s leading...

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/05/08/lexi.jpg?itok=_UKBq1kZ
Tata Elxsi's Automation suite adopted by pan-European Media and Telecommunications Company

Tata Elxsi, a global design and technology services company, announced the licensing of its integrated test automation and monitoring suite ‘FalconEye’ to a pan-European media and telecommunications company for OTT automation and improving streaming performance.

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/13/nabshow.jpg?itok=F8KKyrXQ
Verimatrix recognized for contributions to latin american Pay-TV market with PRODU award win at NAB Show

LAS VEGAS: Verimatrix, a specialist in securing and enhancing revenue for network-connected devices and services, has received the PRODU Award for Best Pay-TV Technology Contribution on behalf of its MultiRights™ OTT solution. MultiRights helps service providers effectively navigate the modern OTT...

Technology Software Firmware
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/04/09/magai.jpg?itok=hC6uaBo3
Amagi debuts machine-learning powered content-preparation suite

Amagi, a cloud-based technology provider for media processing, has launched Tornado, a machine learning-based content preparation service that enables TV networks and content owners to scale their operations and accelerate broadcast workflows.

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/03/08/tivo.jpg?itok=vqdqRSNf
Sharp and TiVo extend interactive program guide deal to power content Discovery across entertainment devices

MUMBAI: TiVo Corporation (NASDAQ: TIVO), a global leader in entertainment technology and audience insights, today announced that Sharp Corporation will further utilize TiVo’s G-Guide HTML across Sharp 4K smart TVs and Ultra HD Blu-ray recorders in Japan, TiVo’s G-Guide xD app and remote schedule...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/25/priyanka.jpg?itok=C0lEuPHt
HARMAN announces Priyanka Chopra as global brand ambassador

HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. focused on connected technologies for automotive, consumer and enterprise markets, today announced that actress, singer, producer and philanthropist Priyanka Chopra has been named a global brand ambassador for the...

Technology Hardware Components
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/24/etere_0.jpg?itok=XgPAaBYr
Etere HSM expands interoperability with Grass Valley

Etere HSM features an integration with Grass Valley that improves interoperability, streamlines connectivity, enables faster content processing and includes deep archive capabilities. Etere introduces a new integration layer between Etere Hierarchical Storage Management (HSM) and Grass Valley...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories