DEN Networks Total digital subscribers are 5mn. The company added 2mn subscribers in Phase 1 and 3mn in Phase 2. DEN added 1.07mn subscribers in Q4FY13. Phase 3 seeding in a major way will start from Q3FY14. Management expects good traction in view of Phase 3 and 4. Also, adjoining cities of Phase 3 and 4 are being targeted even now.
TRAI’s regulation to rent out STB will help increase consumer base in Phase 3 and 4. This will also increase affordability at the bottom of the pyramid. However, it still needs to be seen how the process is implemented. Also, cash flow for cable players will become better in this.
DEN is planning to enter the broadband market by investing USD50mn from fund raising proceeds. It will be targeting Tier I and II cities initially, and based on the success in these markets, it is planning further expansion.
DEN is looking to digitise 6mn subscribers. Hence, till end of Phase 3, investment requirement will be INR6bn. Also, in FY14, investment in broadband will be INR1.5bn and other capex requirement will be INR500mn.
Monday, June 03, 2013
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