Cable TV
LCOs fire back at TRAI for ‘conduits’ remark before Bombay HC
KOLKATA: Local Cable Operators (LCOs) appear to be agitated with industry regulator Telecom Regulatory Authority of India (TRAI) for portraying them as ‘conduits’ between the multi-system operators (MSOs) and subscribers. According to sources, TRAI has overlooked the role played by LCOs as last mile owners in a reply to ongoing litigation against NTO 2.0 in the Bombay high court.
The Maharashtra Cable Operators Federation (MCOF) is of the view that it might lead to subscriber ownership transferred to the MSO. While the TRAI may indicate it is not concerned about LCO’s revenue, it also portrays LCOs as mere recharge operators in the mobile business.
“TRAI has worsened our situation by making assertive statements going against our interests,” the MCOF said in a memo.
In another statement, TRAI has conferred the credit for creating infrastructure to the MSOs. Despite putting lakhs of kilometres of a network together, the LCOs may stand to lose over Rs 1,00,000 crore worth of infrastructure due to the incorrect statement, the MCOF asserted.
According to the federation, TRAI has overlooked the imbalance where benefits flow to broadcasters and MSOs at the cost of LCOs regardless of whether the subscriber pays more or less than pre-NTO days under compulsion to justify its judgemental errors. The unsubstantiated justification for reducing NCF on additional STB completely discounts the fact that most of the STBs are serviced by the LCO who incurs per visit costs that are not billed for.
The federation has urged the operators to raise their voices and protest the statement to make TRAI file a revised affidavit before the high court.
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.
