Hathway Cable & Datacom, a largest Multi-System Operator (MSO) in India has allocated Rs 700 crore as capital expenditure for the Financial Year 2016. The MSO will invest Rs 420 crore in cable TV and Rs 280 crore in broadband, said a senior executive.
The investment of Rs 420 crore for cable TV in FY16 will be mainly for deployment of set-top boxes (STBs) in Phase III towns of (DAS).
The payout to television channels is expected to increase by 15 per cent in financial year 2016. In FY15, the Pay channel cost grew 22 per cent to Rs 813.1 crore from Rs 666.4 crore. While the Content cost at the net level is expected to go up from Rs 22 per STB to around Rs 30 per STB.
The MSO will invest Rs 280 crore in broadband. It has cast tennis star Sania Mirza as its brand ambassador. Hathway has 0.45 million broadband subscribers and is planning to take this up to one million subscribers in the next two financial years. The MSO intends to invest Rs 500 crore (Rs 5 billion) in the broadband business over next two years.
For broadband, the target has been set to add 600,000 homes. “We are looking to add 200,000 net subscribers in FY16,” the executive said.
Hathway is expecting to take its ARPU for Phase II DAS markets (excluding Hyderabad) to Rs 100 by the third quarter of this financial year. It is also planning to launch a web-based app for customers by the third quarter of this financial year.