Cable TV
Kolkata MSOs to increase channel package rates
KOLKATA: A revision in channel package rates is on the cards following the Telecom Regulatory Authority of India’s (TRAI) directions to multi system operators (MSOs) last week to ensure delivery of bills to subscribers by hand, post or email as opted for by them, and provide within 45 days an online payment option in their subscriber management system (SMS) for subscribers to pay their bills in the first phase of the digital addressable system (DAS).
However, the percentage by which channel package rates will go up is not exactly known.
Kolkata has nearly 30 lakh cable homes and till mid-January, MSOs were issuing ad-hoc bills to subscribers. According to several LCOs, despite having implemented gross (consumer) billing in the Kolkata Municipal Area (KMA) since January, end consumers are not willing to pay billed amounts to LCOs.
When contacted, Siticable Kolkata director Suresh Sethia said, “Package rates will soon be revised. There are instances where consumers are not getting bills from LCOs. The law of the land is the same for everyone. So, we have to courier bills to end users and this involves costs.”
“We are happy that TRAI is trying to make the system more transparent,” Sethia added.
An MSO on condition of anonymity said, “We will have to depute collection agents and provide them with a salary or collection commission, whatever they think is better as LCOs are not able to collect money from end consumers. But we can’t use this as an excuse and will ensure we adhere to the TRAI rules, however cash-strapped we are.”
A cable expert expressed the view that package rates will have to be increased as post implementation of DAS broadcasters have started bargaining a lot and have proposed to charge a much higher rate than before.
“MSOs are bound to increase the price as they have to show the bill and pay the tax on that. Also, to follow the new bill delivery system of the TRAI, additional costs will be incurred in terms of software development and manpower. To justify that, they may increase the price,” said Incubators Group chairman Kaushlendra Singh Sengar.
Sengar informed that the Regulator had also asked MSOs to ensure that an electronic acknowledgement is sent to subscribers on their registered mobile numbers or email addresses within 30 days of making the payment to the service provider.
A cable analyst, Mrinal Chatterjee, begged to differ, “Cable TV operation is not telecom operation. Here, LCOs also work. MSOs have no network of their own but depend on last mile connectors. Customers are the clients of the LMO, so how can MSOs send bills to them?”
Other industry sources argued that some MSOs didn’t even have an SMS in place so how could they start an online payment option in the SMS.
Still other sources opined that MSOs and LCOs need to address the issues together. “Now it seems the authorities want to remove the LCOs from this trade altogether, but it is not that easy to do so,” said an LCO on condition of anonymity.
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.
