Cable TV
TRAI awaits call from Madras High Court for Arasu hearing
MUMBAI: More than four weeks have passed since the Madras High Court gave the interim order restraining the Telecom Regulatory Authority of India (TRAI) from taking any coercive steps against the Tamil Nadu state government-owned MSO Arasu Cable TV Corp for giving analogue signals in Chennai.
However, there has been no follow up by the Madras HC on what it intends to do following the stay.
Anticipating a date soon, TRAI lawyers are already up on their toes and are compiling their response so that it can be submitted to the court. “We are still waiting for a date of the hearing. We haven’t heard anything from the court,” says a senior TRAI official.
The case filed against two parties – the Ministry of Information and Broadcasting (MIB) and the TRAI will hopefully be heard soon where the respondents from both the parties will get a chance to present their individual viewpoints.
The entire issue cropped up because Arasu has not been granted a digital addressable system (DAS) licence to run its business in the state even after continuous efforts to secure it. The MSO is still giving out analogue signals, thus keeping Chennai as the only city from Phase I to not go the whole hog on digitisation.
In its order which it passed late December 2013, the court states that the Inter-ministerial Committee (IMC) formed to decide the fate of Arasu has to move quickly on it. The order also mentions that Arasu abided by the rules and applied for a licence even after the Cable TV Networks (Regulation) Act, 1995 was amended in 2012.
“It is not known to this Court as to why the first respondent (MIB) has not taken any decision so far on the application of the petitioner,” states the order.
The TRAI view on this is quite clear. Says a senior official at the regulator: “The decision on granting the licence lies with the MIB. In our recommendation we said that state governments should not be given the licence. The IMC is working on it but we haven’t yet got any response from them.”
The HC also states that since Arasu had followed the rules for applying for a licence, the MIB is not justified in keeping the matter pending and not arriving at a conclusion. It has also directed the Ministry to come out with a decision at the earliest.
If MIB follows the TRAI’s cue and bars Arasu from securing a licence, the regulator can take action against the MSO, according to the official. “If the MIB disqualifies Arasu from getting a licence, it cannot operate and if they do, they will be in violation of the law,” he says.
As of now, nothing can be done against Arasu due to the interim order given by the Madras HC. But which direction this case moves is extremely crucial as the country is soon entering phase III and IV of digitisation. And it will decide whether the city of Chennai remains an analogue island in a sea of digitised India.
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.
