TDSAT directs Skyline Cable Network to pay DEN Rs 15.92 lakh

MUMBAI: The cable has finally been cut but the bill has not. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has ruled in favour of DEN Networks in its dispute with Kerala-based local cable operator (LCO) Skyline Cable Network, directing the operator to pay Rs 15.92 lakh for outstanding subscription dues and the depreciated value of 1,025 set-top boxes (STBs).

In its 13 August 2026 order, the tribunal directed Skyline to pay Rs 54,679 in outstanding subscription dues as of 30 April 2020, along with Rs 15.38 lakh for the 1,025 STBs. The total of Rs 15,92,179 will also carry simple interest of 9 per cent per annum on both components from 30 April 2020 until the date of payment.

DEN had approached TDSAT under Sections 14 and 14A of the Telecom Regulatory Authority of India Act, 1997, originally seeking the outstanding Rs 54,679 and the return of 1,025 STBs or Rs 20.49 lakh in lieu of the equipment, calculated at Rs 1,999 per STB.

The case dates back to an interconnect agreement signed between DEN and Skyline in January 2016, under which Skyline received DEN’s cable television signals for retransmission to subscribers.

DEN said it had supplied 1,025 STBs for deployment at subscriber premises, while retaining ownership of the equipment. The dispute surfaced after Skyline migrated to another multi-system operator, Kerala Communicators Cable Ltd (KCCL).

According to DEN, Skyline made the switch without clearing its outstanding dues, returning the STBs or observing the required notice period.

Skyline disputed the allegations, arguing that the STBs had been sold to subscribers and were no longer in its possession. It also cited protests by LCOs in Kerala and alleged that DEN had failed to meet certain regulatory and contractual obligations, prompting several LCOs to migrate to other MSOs.

KCCL, which was also named as a respondent, maintained that it had no contractual relationship with DEN and therefore could not be held responsible for Skyline’s obligations.

The tribunal agreed with KCCL on the contractual issue, finding no privity of contract between DEN and KCCL. It consequently rejected the claim against the competing MSO.

Skyline, however, did not get the same escape route.

TDSAT noted that both the interconnect agreement and the issuance of the 1,025 STBs were undisputed. Under the agreement and applicable interconnect regulations, ownership of the equipment remained with DEN and the boxes were required to be returned when the contractual relationship ended.

The tribunal also found that Skyline had not established that it had cleared the outstanding subscription dues or complied with the stipulated three-week notice period before migrating to another MSO.

While DEN had sought Rs 20.49 lakh for the 1,025 STBs, TDSAT did not award the full amount.

Taking into account that the equipment had been issued in 2016 and the petition was filed in 2020, the tribunal applied a depreciated value of Rs 1,500 per STB. That put the equipment claim at Rs 15.38 lakh.

TDSAT also imposed 9 per cent simple annual interest, citing the financial circumstances of the cable television network business and its approach in similar matters.

Skyline has been given two months from the judgment to deposit the total amount. If it fails to do so, DEN can seek recovery through execution proceedings.