button googleplaybutton appstorebutton blackberry

 

facebooktwitter2linkedinyoutube

 

General news

Fitch outlines attractive future for India’s MSOs

The government mandate to digitise India's vast cable TV network will improve the business profile of the country's multi system operators (MSOs) over the medium to long term, according to Fitch Ratings.

Investors will, says the agency, have more trust in the accuracy of subscriber numbers through the introduction of digital addressable systems, and ultimately provide the sector with more capital. Broadcasters are also set to benefit from digitisation if, as Fitch predicts, they negotiate for a better carriage fee from the cable networks.

The drive to digitise India's network by the end of 2014 will, says Fitch, require significant capital expenditure, with investments in digital set top boxes to convert the estimated analogue subscriber base of between 67-68 million.

Fitch expects that MSOs such as Hathway Cable & Datacom and DEN Networks who have already embarked upon the digitisation process will better manage the overall execution and financial risks than others, especially during the initial phase of digitisation.

In the short term, any financial gamble taken by the MSOs will be outweighed by the predicted improved business profile of the MSOs, says Fitch, which also expects consolidation in India's cable TV industry with the advent of digitisation.

Mandatory digitisation will also, thinks Fitch, help the cable TV distribution industry to better compete with the direct to home (DTH) satellite TV platforms. Given the MSOs ability to offer broadband connection and additional services, their operational leverage will improve and generate additional cash flows.

Post your comments

    Most read news

    • Last 7 days
    • Last 30 days
    • Always
    Subhash Chandra, the chairman of Dish TV's parent company Essel Group, is looking to work with UAE authorities to stop residents...
    India's Information and Broadcasting ministry has asked the Telecom Regulatory Authority of India (TRAI) to come up with measures to...
    Indian direct to home (DTH) satellite TV operator Videocon d2h is adding Zee TV's high definition (HD) entertainment channel to its...
    A device to inject new life into the tablet industry in India has been launched by the Indian government at a subsidised price of just...
    Pay-TV channels are to be added to Arasu Cable TV’s free to air package, which was re-launched by Tamil Nadu Government earlier this...
    India's 9X Media is to launch a new 24 hour Marathi music channel called 9X Jhakaas on 31 October, in what is set to be the first of...

    etg120x60fbtv120x60fbt120x60pp120x60pp120x60