Thursday, October 10, 2013

Cable Operators Want Last Mile Owners Tag

We met with the Maharashtra Cable Operator’s Federation to discuss various issues impacting the progress of Digital Addressable System (DAS). Key issues were as follows:  Local cable operators (LCOs) emphasised they have made significant investments in in the last mile and they own the last mile and the subscribers. We understand that delay in resolution of the above mentioned issues could see LCOs evaluating possibilities of becoming MSOs by themselves (but could face funding challenges). On similar lines possible that LCOs evaluate providing broadband by themselves (hurt MSO ARPU).

Local cable operators (LCOs) seem unhappy with the revenue share formulae for the basic tier package and recommended that their share should be between 60-80% , else they could consider providing similar services by putting their own head-end for FTA (Free to Air ) channels.

LCOs fear losing control over their subscribers if Multi System operators (MSOs) bill directly. As such subscriber billing should not be done by MSO, instead MSOs should allow LCOs access to subscriber management system (similar to what is done in case of airline ticketing).

On similar lines LCOs proposed that subscriber package activation and de-activation should be controlled by them and not MSOs. LCOs recommended that regional channels must be mandatorily made part of the basic tier package; this will allow LCOs to retain subscribers. They fear regional channels may be kept out to improve ARPU

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