Cable TV
Trai issues new consultation paper to regulate monopoly in Cable TV services
New Delhi: The Telecom Regulatory Authority of India (Trai) has released a new consultation paper to regulate the market structure/ competition in Cable TV services across the country.
The issue was initially raised by the ministry of information and broadcasting (MIB) in December 2012, when it sought the recommendation of the regulatory body. In its letter to Trai, the ministry highlighted how Cable TV distribution is virtually monopolised by a single entity in some states like Tamil Nadu, Punjab, Orissa, Kerala, Uttar Pradesh, and Andhra Pradesh.
According to MIB, it has become necessary to examine whether there is a need to bring in certain reasonable restrictions on Multi-System Operators (MSOs) and Local Cable operators (LCOs), including restricting their area of operation or restricting the subscriber base to prevent monopoly. The Cable TV Act and the Cable TV Rules also do not restrict the number of MSOs/LCOs operating in any specific area.
After following a due consultation process, Trai issued its recommendations on 26 November 2013. However, Trai has now received a backreference from MIB mentioning therein that a considerable time has passed since the recommendations were made and that the media and entertainment (M&E) landscape has changed drastically, particularly with the advent of new digital technologies in this sector. Technological developments especially IP technology and the increasing use of packet-switched digital communications have made converged services possible.
Therefore, some of the issues need further consideration by the authority and it may provide a fresh set of recommendations in the matter looking at the subsequent developments/expansion in the M&E sector, stated MIB.
The regulatory body has now invited comments from the stakeholders by 22 November. Counter comments, if any, may be submitted by 6 December.
As of September 2021, there are 1733 registered MSOs in the country and approximately 1. 55 lakh cable operators as of March 2021.
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.
