Local Cable Operators: Unsung Heroes in India’s Wired Broadband Expansion
Local cable operators (LCOs) in India are emerging as a vital link between internet service providers (ISPs) and end-users, with a crucial role to play in expanding wired broadband services across the country.
A Declining Pay-TV Subscribers: A New Revenue Stream
- Local cable operators are partnering with major telecom firms like Reliance Jio and Bharti Airtel to offer broadband services.
- ISPs like Excitel, independent multi-system operators (MSOs), and telecom firms are also embracing the LCO model to strengthen their broadband businesses.
- Collaborations between LCOs and ISPs offer a much-needed opportunity for LCOs to diversify revenue streams, as their primary income from cable TV faces pressure due to declining pay-TV subscriptions.
Key Players in the LCO Model
| LCO | ISPs Partnered With | Broadband Offerings |
|---|---|---|
| Reliance Jio | Hathway Cable and Datacom, DEN Networks, and GTPL Hathway | IPTV services |
| Bharti Airtel | LCOs for expanding its wired broadband reach | Home-pass rollout and customer additions |
| Excitel Broadband | 2,300 LCOs | Fibre broadband to customers |
Success Stories and Challenges
““We have partnered with 2,300 LCOs to provide fibre broadband to customers. It’s a win-win partnership since we share 40% of revenue with them. It helps us to acquire customers and it opens up a new revenue stream for the LCOs,”
said Excitel Broadband CEO Vivek Raina.
LCOs like UCN Cable and Excitel Broadband are leveraging the LCO model to diversify their revenue streams and expand their broadband offerings. However, the success of this model depends on the quality of service, which remains a key determinant of their success.
Government Support and Regulations
- The Telecom Regulatory Authority of India (TRAI) recommended that the government take steps to facilitate the sharing of LCO cable infrastructure with telecom service providers (TSPs) to support last-mile broadband delivery.
- TRAI also proposed amending existing rules and guidelines to enable TSPs to utilise the infrastructure created by LCOs, thereby accelerating broadband expansion.
Conclusion
Local cable operators are emerging as a vital link in India’s wired broadband expansion, leveraging their existing infrastructure to connect ISPs and end-users.
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