News Broadcasting
TRAI notification: advantage cable ops for present?
NEW DELHI / MUMBAI: The Telecom Regulatory Authority of India (TRAI) today came out with its first order through a notification — freezing the rates at which the charges for a cable service is given as on 26 December — adding a new twist to the chaotic situation prevailing in the broadcast and cable industry.
It has also not tried to put any speed-breakers on the way of CAS rollout, contrary to the fears of the cable fraternity, and has said that it would wait for Delhi high court to take a final view on the issue of addressability
“To bring some certainty in the rates prevailing for these (cable) services, it was considered necessary by the Telecom Regulatory Authority of India to intervene in the matter. The TRAI has, therefore, deemed it appropriate to specify as ceiling the rates at which the charges will be paid by the cable subscribers to cable operators, by the cable operators to multi service operators and by multi service operators to broadcasters, as those prevailing on 26 December 2003 with respect to both free-to-air channels and pay channels, and for both CAS and non-CAS areas,” a TRAI notification states.
It further adds that this intervention will continue until a final determination by the regulator on the various issues involved.
The confusion stems from the fact that as freezing of rates of cable services is open to interpretation. It raises the question whether a demand in increase in connectivity (as done by Star India) would also be frozen as of 26 December. Certain channels have claimed that they have not increased their rates, but have slashed them. However, the reduced price is available only those cable ops and MSOs who increased their declared subscription base, which, in effect, is tantamount to a rate hike as the outflow of the cable industry to broadcasters would increase under this formula.
This was evident in how Star India COO Sameer Nair saw the development. “We have to study the TRAI order, but on the face of it, I don’t think the order would effect us. Rather, we have reduced the prices of Star channels (from Rs 30 to Rs 27),” he told indiantelevision.com.
Zee Telefilms vice-chairman and head of Siti Cable, Jawahar Goel, offers a counter view. According to him, if TRAI is speaking about freezing of rates, then it makes no sense as an MSO’s outflow would increase because of the demand of increased declaration in subscriber base. If TRAI is talking about a freeze in the charges, which would include an upped subscriber base, then it would indicate that the “regulator has managed to rein in the pay broadcasters.” He added: ” Still, clarifications would be needed on what actually TRAI is trying to say.”
One industry player however, saw no confusion in the TRAI ruling. HTMT group director and CTO KV Seshasayee under whose charge InCableNet also falls, expressed “relief that the regulator has acted very quickly.”
Queried as to what was the satus of deals that had been reached with the different broadcasters for 2004, Seshasayee said they stodd invalidated. Payment terms would have to be based on agreements that were in existence as on 26 December 2003, Seshasayee said.
SET India CEO Kunal Dasgupta had this to say: “I still need to study the implications of the order. But I do hope that the freezing of rates is not an indefinite one. However, I am sure there is a logic to what the TRAI is doing. We’ll just have to wait and watch.”
And what does TRAI chairman Pradip Baijal has to say on this issue?
Steering clear of this new debate that has been sparked off, maybe unwittingly by TRAI, Baijal said, “We have started a consultation process on various issues. I did not want a change in the status, including rates (of cable service) till I have taken a final view on the matter.”
He also said that TRAI cannot put a stop to CAS rollout or take any decision as a case relating to addressability is pending in the Delhi HC. So, can the cable ops and MSOs push ahead with CAS in South Delhi after a lull. “I suppose so,” the TRAI chief replied.
Further, what could have caused immediate confusion in the industry is the fact that TRAI has issued two sets of communications, apart from a press release sent to the media. One is the notification and the other is the more than 10 pages of consultation paper.
CAUTION & CONFUSION PREVAILS
Surprising though, the fact that TRAI’s first initiative for the broadcast and cable industry hasn’t elicited the type of enthusiasm one had expected, considering a sizeable section of the industry wanted a regulator to be in place.
So much so that many broadcasters either did not want to comment immediately or did not want to be quoted.
Even the cable fraternity is confused. And it is not only Zee’s Goel. National Cable and Telecom Association (NCTA) president Vikki Chowdhry said, “The official language is totally confusing. But I read it as we don’t have to pay the extra amount of money being demanded by the broadcasters.”
Cable Operators’ Federation of India (COFI) chief Roop Sharma said from Cochin, where she has gone to rally cable operators for CAS, that she too is “slightly confused.”
“Does the TRAI order mean that rates have been frozen all over the country or for CAS zones? Who’ll monitor whether the order is being followed or not? Does TRAI have enough manpower to do an effective monitoring of the situation?” Sharma came out with a deluge of questions.
Valid questions, though. For example, for CAS zones, Star India may have ‘dropped’ rates, but for non-CAS zones, according to the cable industry, the network is charging Rs. 55 for the bouquet now, up from Rs 50. Of course, it includes the newly-launched The History Channel too.
Another broadcaster that can get effected significantly, ESPN-Star Sports, was not available for comment.
A senior executive of Hathway Datacom, without wanting to get into nitty-gritties, said, “It’s good that TRAI has come out with something. We’ll study the material and revert to the regulator.”
What is the moral of the story? Even a regulator, probably, would need some time to understand the complexities of the broadcast and cable industry. Now, that gives rise to a very fundamental question: is TRAI adequately equipped to do so?
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
