jpja
Member
- Joined
- 18 Mar 2015
- Messages
- 536
- Reaction score
- 235
MUMBAI: Hathway Cable & Datacom is demerging its broadband business in a wholly owned subsidiary, Hathway Broadband Pvt Ltd, in order to aggressively focus on the growth potential for high speed data and related services in India.
The board of directors of Hathway has given its in-principle approval to demerge, transfer and vest the company’s entire broadband business into Hathway Broadband.
The company said that carve out of the broadband business is aimed at accelerating value creation for Hathway shareholders.
Hathway Cable & Datacom MD & CEO Jagdish Kumar said, “We are uniquely placed to leverage our leading position in the cable television industry and our brand to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business.”
He added that the separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to subscribers.
Globally, wireline or fixed broadband has emerged as a key driver of technology adoption and overall, GDP growth. India lags most countries including countries in Asia in wireline broadband penetration reaching only about 8 per cent of the potential universe.
Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Narendra Modi’s ‘Digital India Initiative’.
The Company believes that its hybrid fiber coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.
The demerger is subject to regulatory and other requisite approvals.
The board of directors of Hathway has given its in-principle approval to demerge, transfer and vest the company’s entire broadband business into Hathway Broadband.
The company said that carve out of the broadband business is aimed at accelerating value creation for Hathway shareholders.
Hathway Cable & Datacom MD & CEO Jagdish Kumar said, “We are uniquely placed to leverage our leading position in the cable television industry and our brand to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business.”
He added that the separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to subscribers.
Globally, wireline or fixed broadband has emerged as a key driver of technology adoption and overall, GDP growth. India lags most countries including countries in Asia in wireline broadband penetration reaching only about 8 per cent of the potential universe.
Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Narendra Modi’s ‘Digital India Initiative’.
The Company believes that its hybrid fiber coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.
The demerger is subject to regulatory and other requisite approvals.
