Cable TV
Retransmission law contravened: Sidhu, Fastway refutes ‘monopoly’ charge
MUMBAI Punjab minister Navjot Singh Sidhu intends to bring an ordinance for auditing the tax the previous government collected from cable operators. Putting the chief minister Capt Amarinder Singh in a fix, Sidhu has asked him to decide on recovering the ‘tax evaded’ by the MSO — Fastway Cable Network.
The Punjab Government, he said, was committed to break the monopoly situation and to have a level playing field in cable TV industry.
In the Indian states where there is competition among MSOs, Sidhu said, rates being charged from LCOs (local cable operators) are Rs 75 in Rajasthan, Rs 60 in UP, and a whopping Rs 130 in Punjab. It was being done without any legal agreement and without raising any invoices, whereby LCOs had no option but deposit the same — which is in contravention of the law of retransmission of cable TV signals. By creating the monopoly, Sidhu said, MSOs have an unequal bargaining power with the broadcasters but extracting huge carriage/placement revenue from the broadcasters.
Sidhu said that he would procure a GPR (ground penetrating radar) to assess where cabled had been laid and whether the operator had paid due taxes. Since the subject related to excise and taxation is under the CM, he said, the matter would have to be taken to Singh and the cabinet.
In 1995, Sidhu said, the entertainment tax in Punjab was Rs 50 per television set. But, the Badal government amended the provisions to keep Fastway out of tax net and imposed a tiny tax of Rs 15,000 per annum. A Fastway release later stated that the Supreme Court lawyer Vineet Bhagat (Sidhu’s advisor) was defeated by Fastway in several cases, and hence he had twisted the facts and presented figures to show the MSO in a poor light.
Calculating the impact of the loss to the state exchequer by taking into account a conservative figure of 40 lakh Fastway connections (as stated in 2012 Competition Commission of India report, it would come to (40 lakh x 50 x 12 x 6) Rs 14.4 billion, the minister alleged. Sidhu said the actual figure could go up to Rs 200 billion. Despite having over 80 lakh connections today, Sidhu said, Fastway had grossly under-declared its connections at around 24 lakh to TRAI, continuing to short-change the regulator and the government.
Refuting, Fastway CEO Peeush Mahajan said his company had no monopoly as Godfather Cable, Hinduja and MC Transmissions were operating in the state. Punjab had six DTH companies as well, he said. Fastway, he said, had a tamper-proof system and it has been audited by broadcasters and the central government agency BECL (Broadcasting Engineering Corporation of India Limited).
ALSO READ :
Probe Punjab ‘cable mafia,’ demands minister, Fastway refutes charges
Punjab Govt falters in first leg of breaking cable monopoly
Punjab govt. vows to break cable monopoly, rules out blocking MSO Fastway
Hinduja’s NXT Digital enters Fastway-dominated Punjab
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.
