Cable TV
Arasu has a provisional MSO licence to operate: Manish Tewari
NEW DELHI: The Tamil Nadu Arasu Cable TV Corporation, a multi-system operator (MSO) run by the TN government – has been claiming that the government has not given it an operational licence, thereby restricting it from transmitting digital signals to its subscribers. The MSO even filed a case in the Madras High Court in December, 2013 and got a stay over Telecom Regulatory Authority of India’s (TRAI) earlier order which stated that MSOs transmitting analogue signals in Chennai would be prosecuted.
While the case is yet to get its second date of hearing, the Information and Broadcasting (I&B) minister Manish Tewari, in a response to a question in the Parliament, said that on 26 November, 2007 Arasu had applied for grant of MSO registration in conditional access system (CAS) notified area of Chennai. The Ministry had granted provisional permission on 2 April, 2008. It was on the condition that after TRAI recommendations are considered, the Ministry will decide whether state governments/PSUs and other entities can enter into broadcasting activities including MSO/Cable operations.
Along with Arasu, four other MSOs in Chennai were also given CAS licences in 2006 including IMCL, Hathway Cable and Datacom, Kal Cable and JAK communications.
In response to a question about licences given to private players in other southern states, Tewari said that CAS was implemented in the notified areas of Delhi, Mumbai and Kolkata on 31.12.2006; while in Chennai, it was implemented since 2003 under notifications of 14 January, 2003 and 31 July, 2006. Since CAS was implemented only in Chennai, no CAS permission was granted to MSOs in other southern states.
The entire episode has in a way turned everything around. The case is pending in court till the time TRAI submits its response. So while TRAI – which is completely against the idea of govt. owned MSOs and awaits Ministry’s response to its recommendations – awaits the responses, it could mean that Arasu is free to operate. Moreover, it can even give digital signals or seed STBs as TRAI can’t take any action against it, given that the MSO has a temporary licence.
The picture will be clear only after the Ministry brings out its regulation and the case in the Madras High Court proceeds.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
