Cable TV
NTO 2.0: MSOs asks Trai to reject new RIOs published by broadcasters
Mumbai: The Tamil Nadu Digital Cable TV Operators Association has sent a legal notice to the Telecom Regulatory Authority of India (Trai) asking it to reject the new reference interconnection offers (RIO) published by broadcasters. The Association has also sought Trai’s intervention in asking broadcasters to reduce channel prices as it “will cause irreparable loss to the entire industry”.
Major broadcasters including Disney Star India, Zee Entertainment Enterprises Ltd, Sony Pictures Networks India, and TV18 Broadcast Ltd, had published their new RIOs over the weekend starting from 15 October (Dussehra) with the new a-la-carte pay channel and bouquet pricing that adheres to Trai’s new tariff order (NTO) 2.0.
The broadcasters had hiked the prices of their driver channels and pulled them from all their bouquets as Trai’s NTO 2.0 provisions mandated an MRP cap of Rs 12 for any pay channel to be included in a bouquet. The broadcasters are currently battling the Trai order in the Supreme Court stating that some of its provisions are arbitrary and outside the purview of the regulator. The final hearing is on 30 November.
In its notice to Trai, the Association has stated that “major broadcasters have issued their RIOs where it can be calculated that majorly subscribed channels by the consumers will be inflated by 100 per cent to 200 per cent.”
It added, “It is pertinent to mention here that during the situation when over-the-top service providers are trying to make their services more affordable to increase their subscriber base, the service providers of this industry will have to increase their rates substantially which will certainly cause loss of subscriber base of the local cable operators (LCOs) and multi-system operators (MSO).”
These “excessive prices” will undoubtedly hurt the subscriber base of cable operators whose subscribers come from the rural areas of the country where income levels are comparatively lower. The MSO mentioned that any regulation/direction/order implemented by Trai should lead to the growth and development of service providers and consumers.
“It is the contention of the Tamil Nadu Digital Cable TV Operators Association that the RIO published by Disney Star India has an illegal clause that requires MSOs to “continue the channels on the old LCNs and they cannot change it”. If new RIO is being asked to be implemented, then all its terms are liable to be renegotiated and the broadcaster cannot favourably keep the clauses of the old RIOs,” it said.
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.
