MSOs reeling under losses due to the delay in Digitization, plan to start with voluntary digitisation

By November 8th, 2014 AT 11:43 AM

Digitisation has hit a roadblock when the I&B minister announced recently that it will be postponing phase 3 and phase 4. MSOs and broadcasters were found criticising the move as they had already invested huge sum for the digitization process and are yet to realise their investments.

dth india

Siti Cable CEO quoted “It is the MSOs who have invested in the Digitisation”. In such a case Mr. Wadhwa suggested that MSOs can opt for voluntary digitisation in the delayed phases. MSOs are fearing that they will lose their money as cable operators will not pay them incremental money due to the delay in digitisation.

MSOs are also reeling under losses as they have invested a huge sum of money and they have to keep on paying interest for the next 15 months. This has also affected the broadcasters who had pinned their hopes on increasing the subscription after digitisation. Mr. Wadhwa also suggested further that the LCOs need to increase their subscription to Rs.200-250 so as to recover the money invested for digitization. He further added that “With this, till digitization is complete, while ARPU for the MSO increases, the LSO can also get 50% more margin that what they are currently getting”

Mahit Huilgol is a Mechanical Engineering graduate and is a Technology and Automobile aficionado. He ditched the Corporate boardroom wars in the favor for technology battle ground. He is also a foodie by heart and loves both the edible chips and non-edible silicon chips.

guest
1 Comment
newest
oldest
Inline Feedbacks
View all comments

Recent Posts

Vi (Vodafone Idea) Unique Prepaid Plans that You Can Get Today

After rebranding Vodafone Idea to Vi, the telco has made some changes to its prepaid offerings as well. Not only...

HFCL Building Reliance Jio FTTH Network Across 300 Cities, Seeks More Clarity on BSNL 4G

HFCL, a company engaged in the telecommunications infrastructure sector on Saturday said that it is currently implementing Fibre-to-the-Home (FTTH) network...

Samsung Galaxy F41 India Launch Set for October 8

Samsung is all set to launch a new smartphone series in the Indian market. The South Korean company will be...