TDSAT directs Hathway to pay Rs 14.56 crore to MSM Media Distribution

MUMBAI: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed multi system operator (MSO) Hathway Cable and Datacom to pay Rs 14.56 crore towards subscription dues to MSM Media Distribution (MSMMD) till the expiry of the agreement i.e. 31 October, 2015 in three installments.

It can be noted that both Hathway and MSM have two separate deals for phase I and phase II cities. While the agreement for the phase I cities is valid till 31 October 2015, the agreement for phase II ended on 31 March, 2015. 

“Hathway hasn’t paid us for the past six-seven months in phase I areas and has not renewed the deals in phase II cities. So while we have stopped signals to the platform in phase II cities, we approached the Tribunal to recover the money for phase I, where the MSO had signed a fixed fee contract with us and is now trying to come out of it,” said MSMMD executive vice president sales and marketing Makarand Palekar.

The TDSAT, in its order, has said that Hathway has to honour the commitment under the memorandum of understanding (MOU) for the entire term for DAS phase I areas till its expiry i.e. up to 31 October, 2015. Accordingly, Hathway has to pay the subscription fees in accordance with the MOU. 

“We will have to keep the service on in the phase I cities, considering the agreement is till 31 October, but we could not have been more patient in terms of recovering the money, which the MSO hasn’t paid for the past six-seven months,” added Palekar. 

According to Palekar, close to five million homes across the country will not be able to watch MSM channels with the network being pulled off from Hathway. “There are close to 3000 MSOs and we have a cordial relation with all. The subscribers will suffer because of the MSO not signing the agreement,” concluded Palekar. 

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