Report on Shemaroo

Why last mile monopoly is a roadblock in broadband growth

The monopoly stifles the competition and infrastructure sharing.


KOLKATA: Demand for broadband connectivity has existed in India for a while, but recently, calls for better quality of service are growing increasingly strident. While the existing cable TV infrastructure could play a potential role in delivering broadband, last mile monopoly is one of the major factors that prevent the growth of the sector through infrastructure sharing.

In response to the Telecom Regulatory Authority of India’s consultation paper, one of the largest broadcasters - Star India stated that there is still a problem of last mile monopoly in the cable TV industry arising from exclusive deals between cable TV operators and Resident Welfare Associations (RWA).

“Following TRAI recommendation on ‘In-Building Access by Telecom Service Providers’ in January, the DoT in November 2019 issued an advisory to all telecom service licensees to share in-building infrastructure to share infrastructure in airports, railway stations, bus terminals, metro lines and hospitals etc. The MIB, as the licensor of all MSOs, must issue a similar advisory for sharing of cable TV operators’ in-building infrastructure and infrastructures within a particular RWA,” Star India said.

The broadcaster mentioned that 1,600 MSOs and 60,000 LCOs have laid a vast network of copper coaxial and fibre network connecting 8.3 crore households. It suggested that since these are private networks and do not utilise scarce spectrum, the government should exempt cable operators with Internet Service Provider (ISP) license from paying AGR for a minimum period of five years, provided that they operationalise them within six months of obtaining ISP license. According to the broadcaster, this will incentivise cable TV operators to provide broadband services and instantaneously increase wired broadband connectivity from 1.9 crores to around 10 crores.

Leading ISP Atria Convergence Technologies Ltd also pointed out that there is a huge monopoly in providing cable TV services as the dominant LCO takes over a particular area by tying up with a single MSO and completely stifles the competition by preventing entry of other LCOs and MSOs in the given area.

“Wired ISPs are seen as a threat by the LCOs and the same usually results in sabotage of network assets of the wired ISPs. If wired ISPs need to actively collaborate with LCOs, then these prevalent practices in cable TV industry should be curtailed and arrangements between ISPs and LCO should be left to market forces,” it added.

Latest Reads

discovery+ unveils special content line-up for sports fans

With the sporting action on a pause, fans are scrambling for ways to enjoy their favourite sports. Streaming platform discovery+ on Wednesday, unveiled its new content line-up with a host of gripping documentaries to keep the fans engaged, as they wait for the real action. 

iWorld Over The Top Services
SonyLIV appoints Sreedhar Reddy Komalla as Telugu Content head

Kolkata: SonyLIV has appointed Sreedhar Reddy Komalla as Telugu Content head, Digital Business. In his new role, Reddy will primarily focus on leading the expansion plans of the Telugu vertical of SonyLIV for users across markets.

iWorld Over The Top Services
Twitter appoints interim chief compliance officer in India

Microblogging site Twitter has appointed an interim chief compliance officer in line with the new IT rules which came into effect on 26 May. The company will share the details with the IT ministry soon, it said on Tuesday.

iWorld Over The Top Services
HiPi ties up with Zee Bangla’s Dance Bangla Dance

Short-video platform HiPi has tied up with Zee Bengal’s dance reality show -Dance Bangla Dance to provide viewers with a steady dose of interactive content, to engage on the HiPi app.

iWorld Over The Top Services
MX Player deploys H.266, slashes video streaming data usage by half

Online video consumption in India has grown exponentially, accounting for 80 per cent of consumer internet traffic. However, the user experience remains highly dependent on data usage and network speed.

iWorld Over The Top Services
We are working towards a diverse content offering: Zee5's Nimisha Pandey

Zee5 has announced a partnership with TVF (The Viral Fever) as the platform looks at diversifying its library. In the last few months, ZEE’s digital arm has stepped up its content game by acquiring blockbuster Radhe and buying rights for Friends: The Reunion to stream in India.

iWorld Over The Top Services
Short-video app Changa ropes in Abhay Ojha as CEO

New Delhi : Tech firm BITCS has roped in Abhay Ojha as the CEO of its short video app, Changa. According to the company, Ojha's main role will be to scale up the platform and bolster its content offerings. Ojha has worked with Star India and ZEEL in the past, after which he set up a company called...

iWorld Over The Top Services
Cricketer Rishabh Pant signs up with Moj

New Delhi: Cricket buffs can now look forward to connecting with cricketing sensation Rishabh Pant on short video app Moj. Ace wicket-keeper and batsman, Pant is the first Indian cricketer to join the app. "He will be sharing exclusive content from his cricket tours, thrilling action moments from...

iWorld Over The Top Services
Aaron Herps appointed GM for AVIA's Coalition Against Piracy

KOLKATA: The Asia Video Industry Association (AVIA) has appointed Aaron Herps as the general manager of its Coalition Against Piracy (CAP), following the departure of Neil Gane who moved on to take up a position with the Alliance for Creativity and Entertainment (ACE). Herps joined AVIA in 2019 as...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required