Cable TV
Trai proposes 74% FDI in cable TV
NEW DELHI: The Telecom Regulatory Authority of India (Trai) wants 74 per cent foreign direct investment (FDI) to be allowed in cable TV which would bring the sector in parity with telecom companies.
The current regulation allows only 49 per cent FDI in cable TV while telecos can attract 74 per cent foreign investment.
In a consultation paper released on onvergence and competition in various broadcasting and telecom services, Trai says, “Cable TV network is a carriage for delivering voice, data and TV just like the copper or fibre wires that are being used by the telecom industry for providing these services.”
The paper adds, “In view of convergence and future broadband and telephony business, it is suggested that the cable industry should also be allowed parity with telecom.”
Pointing out that convergence is already a reality, the regulator said the present paper is based on previous work done by it in individual recommendations on various industry-related issues.
Another key proposal made in the paper is on unification of customs duty. “A number of items pertaining to the cable TV industry, which have similar functions as that of items in telecom, must have similar customs duty rates,” it says.
The paper also includes issues for consultation based on the report of a committee that had been set up by Trai to examine issues relating to broadband and telephony over cable TV networks.
In 2004, the broadcast and cable TV services were re-designated as telecom services by the then government to bring them under the purview of Trai.
The consultation paper begins with an introduction to the issues of convergence and competition and goes on to introduce the idea of convergence and alternative definitions of convergence as well as various ways to approach it.
Then the paper, the full text of which is available on trai.gov.in, looks at the impact that convergence has on markets, regulations and consumers and highlights the developments taking place elsewhere in the world.
The issues for consultation are essentially the following:
# Need for a comprehensive legal framework for promoting convergence.
# Approach to unified licensing.
# Technology and service neutral spectrum licensing.
# Issues on which suggestions have been made by the committee on broadband and telephony over cable TV networks such as rationalisation of differential customs duty regime, restriction on use of protocols, license fees and right of way.
“A well-designed scheme of regulation that helps convergence can vastly increase the competitiveness and efficiency of the Indian economy. This is all the more important in an era of growing importance of information and communications,” Trai has summed up.
Written comments on the issues raised are to be sent to the regulator by 30 January, 2006.
Also read:
Trai moots 2010 as deadline for digitalisation of cable TV
Government announces broadband policy
Trai releases recommendations for broadcast sector
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.
