Hathway Cable needs Rs 7 bn funding for digitisation

MUMBAI: Hathway Cable & Datacom will require an investment of Rs 6-7 billion to digitise its existing subscriber base if the government mandates the phasing out of analogue cable, a top official said.

In the first phase involving the four metros, India‘s leading multi-system operator (MSO) will need Rs one billion. Hathway has cable TV operations in Mumbai and Delhi. In Kolkata, Hathway has a presence through its joint venture company, Gujarat Telelinks Pvt Ltd (GTPL), which acquired a 51 per cent stake in Kolkata Cable and Broadband Pariseva.

“Our requirement in the first phase will be about one million set-top boxes. This would mean a funding need of around Rs 1 billion,” said Hathway Cable & Datacom managing director and CEO K Jayaraman.

Overseeing Hathway‘s subscriber universe is eight million. “We have digitised around two million homes. We will need to digitise the remaining six million homes. Our funding requirement will be Rs 6-7 billion as we need to subsidise the set-top box cost,” Jayaraman said.

Hathway will not pursue acquisitions and will prefer to conserve capital for digitisation. “We will not do any more analogue consolidation. It is bad to add analogue weight in the current circumstances. Our focus will be on digitisation,” said Jayaraman.