Jaipur LCOs may brings their own headend

The fight between the multi-system operators (MSOs) and local cable operators (LCOs) has reached to the Jaipur. Pressures from MSOs to pay more from what they collect from their subscribers, forcing LCOs to break away from the MSOs fold and set up their own headend.

One of the LCOs from Jaipur on the condition of anonymity told to Cablequest that the LCOs are contemplating the move. 

The LCOs in Jaipur have been paying Rs 67 per set-top box (STB) including service tax. The MSOs, however, started demanding more subscription fee. First, the subscription fee was increased from Rs 67 to Rs 75 and subsequently Rs 85.

“It is becoming unviable for us because we collect Rs 130 per month from good areas and Rs 100 from slum areas. If we pay Rs 85 to the MSOs, then we are not left with anything as we have overheads of Rs 50,” the operator said, on condition of anonymity. 

Jaipur has 300 LCOs serving 425,000 cable TV subscribers. The city has a reactivated cable operator federation called Jaipur Cable Welfare Association. 

“We have not taken a final decision yet. We don’t want to do all this but the MSOs are forcing us to take such a step. If they stop harassing us, we will not consider setting up our own headend,” the operator said. 

The decision of the MSOs to switch off 200,000 STBs earlier this month over non-payment of dues had only strengthened the determination of the LCOs to leave the MSO fold. 

“We will be out of the business if things continue this way. Therefore, it’s better to be the master of your own destiny rather than being at the mercy of MSOs,” the operator rued. 

However, the LCOs are aware of the challenges of going solo. Not only do they have to invest in infrastructure but also in raising resources to buy STBs. 

“We will form a private limited company and ask all members to pitch in with resources. We will approach banks for buying STBs,” the operator revealed.

Source: http://cablequest.org/news/digitization-news/item/4447-jaipur-lcos-may-brings-their-own-headend.html