Reliance Jio Media, a subsidiary of Reliance Jio Infocomm has applied for Pan India multi-system operator (MSO) license that will enable the company to broadcast TV channels to local cable TV operators as well as households. We view RJio's entry in to TV distribution business as incrementally negative for Hathway and Dish TV as it increases competition. RJio’s entry may also limit the ability of MSOs to increase ARPU meaningfully in the near to medium term. RJio owns Network 18 which gives it access to some content such as news.
We believe RJio is likely to use all three mediums – Fiber, Cable TV, and wireless – to offer high speed broadband and pay TV services to households. Also, the company may look to acquire small MSOs and LCOs to increase its foothold in the cable TV distribution business especially in the phase 3 and phase 4 areas where 90-100m households are likely to be digitized over the next 3years. In the phase 1 and phase 2
cities, the company may put emphasis on fiber to home network as affordability is high in the cities of Phase 1 and Phase 2.
Monday, January 19, 2015
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