HITS provides win-win situation

MUMBAI: According to the JP Morgan, the HITS model is the only option which provides a win-win situation in a scenario as the reach of the MSO gets extended and the LCO need not invest heavily as well.

Will the HITS Model Be Adopted?

The unaligned local cable operator will have to install multiple encoders on his site to service his subscribers with the CAS signal. Small cable operators will likely find it uneconomical to do so. However, in the HITS model, the MSO can reach out to the local cable operator (LCO) who is currently not provided service by him.

The local operator can now downlink the encrypted MSO signal with minor capital expenditure to his existing equipment.

Thus, it is a win-win situation for both the MSO and the LCO, as the reach of the MSO gets extended and the LCO need not invest heavily as well. As such, it is natural for the MSOs to adopt the HITS model.

However, the change-over may not take place in a hurry. MSOs can provide signals in metros without HITS. It must be noted that the total number of headends in the country is over 7,000 of which only around 50 are in the metros. Thus, the MSO might not use HITS to distribute signals to the 50 headends in the metros, but may look into the HITS model when it is implementing HITS across the country.

Currently, Siticable looks to be the only MSO going the HITS way, though others such as Hathway have sought permission for the same.

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