Trai Tariff Regime Will Open New Markets for DPOs, Says GTPL Hathway Business Head

Published by
Arpit Sharma

Like we have mentioned before, the new national tariff order (NTO) by the Telecom Regulatory Authority of India (Trai) has had negative and positive effects. For the cable TV service providers and broadband service provider GTPL, the impact of the mandate has mostly been bumpy and troubling. The operators hasn’t seen a good quarter after the implementation of the new tariff regime. But, even then, GTPL Hathway sees a good prospect in consolidation. The service provider is likely to use this opportunity to pave the way for an expanded footprint across the country.

GTPL Sees Good Avenue in Consolidation

GTPL Hathway promoter and managing director Anirudhsinhji Jadeja announced in the earnings call after the Q4 results, “We are also expanding into other markets. Now because of NTO, there is no area demarcation and we can enter all India. So we are planning to consolidate small players also as they are facing a lot of issues because of the new NTO. It is a good opportunity for us.”

It is worth noting that although GPTL Hathway seeded 800,000 STBs in FY19 and the total seeded STBs stood at 9.5 million, the company witnessed a decline of 200,000 subscribers due to the implementation of the new regulatory framework as the entire LCO mode was transformed to auto-dunning mode. GTPL Hathway Piyush Pankaj said in a statement, “Going forward you will see an increase in subscription revenue and in the pay channel cost. By quarter 1, you will see the full implementation and the full effect.” He also said that the full effect of the NTO was not visible in the Q4 as the implementation and migration was still ongoing. He also expects the company EBITDA to rise due to it in the coming times.

GTPL Hathway Eyes Better EBITDA After New NTO

Talking about the benefits of the new order, Jadeja said that it has opened up new avenues for the DPOs as now they will not be restricted to one location. He added that owing to this, markets with significant potential for penetration like Andhra Pradesh, Telangana, Assam, Bihar, Jharkhand etc. will be the focus for further expansion.

Pankaj said that previously they used to bill the LCO based on what was prevailing in the market, but the ways have changed now as the LCO is being charged based on what the consumer is opting. Since now the customers are opting for higher priced channels and subscriptions, LCO outflow and their billing to the LCO has also increased. On the same lines, Jadeja said that in the FY20, they are looking to seed another one million set-top boxes in existing markets along with some new markets. He also said that the company would keep the capex same, but there would be debt reduction of Rs 40 crore to Rs 50 crore in FY20.

Arpit Sharma

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

Share
Published by
Arpit Sharma

Recent Posts

Google Chrome Extensions You Must Check Out Right Now

When it comes to browsers, Google Chrome definitely has plenty of features that users can…

iPhone 14 Pro and iPhone 14 Pro Max May Feature Hole Punch Screen Design

In a recent report related to the next iPhone by Apple coming out next year,…

Oppo Find N Foldable Phone Slated to Launch on December 15

Oppo has finally confirmed the arrival of its first foldable phone, Oppo Find N. Slated,…

Vodafone Idea Chairman Says Banks Will Soon Need to Rethink Strategy

The world is shifting towards a digital ecosystem of banking and payments. The online transaction…

DoT Will Reverify SIM Connections for Select People

It is common to have multiple SIM cards for people in today’s age. Almost every…

Airtel India Startup Innovation Challenge Launched to Fast-Track 5G Development

Bharti Airtel has just announced the launch of ‘India Startup Innovation Challenge’. The telco has…

Broadband Plans Under Rs 800 from Airtel, BSNL, JioFiber, ACT, Excitel, Tata Sky

With prepaid data tariffs turning expensive and the increasing demand for home broadband, many customers…

Govt Favouring Jio, BSNL Not Able to Start 4G Services: DMK MP

Bharat Sanchar Nigam Limited (BSNL) is struggling to stay on its feet due to not…

5G Network Equipment Only Coming from Trusted Sources

Network security is of prime importance for any nation today. Mobile networks carry a ton…