RE: Does Arasu really wants to serve Chennai??
aravindan said:
I think bright future ahead for Arasu..
That's why govt investing in it...
Exactly, lets have official figures.
Arasu 2013 - 14 finance details (Source: Business Standard, TheHindu etc).
Total Subscribers: 70.52 Lakh* (as on July 2014).
Revenue: Rs 185 crore*.
Expense: Rs 172.98 crore*.
Net Profit: Rs 12.02 core*.
The above figures are without Chennai on the map and the net profit is after deducting the payment to all the pay channels and LCO (Rs 50 per connection as LCO share along with other rental and all other expenses taken into account).
So the total expense of Rs 173 crore* would stay more or less the same for the current financial year of 2014 - 15 as Arasu has access almost every single pay channel in the nation and this channel count would suffice even under DAS usage.
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If Chennai comes into the picture.
Total Subscribers: 32* lakh households with around 40* lakh connections.
Analogue Profit from Chennai (Arasu's share of Rs 20* per connection for approx 20* lakh connection (assuming just 50% of total connections) for 12 months): 48 crore*.
Analogue Profit from rest of TN*: 12 crore*.
Total TN Analogue Profit*: 60 crore*.
If CAS comes into the picture (Assuming Rs 125* as a CAS price with all pay channels, and expense at Rs 75* (LCO share etc) Arasu will easily make Rs 50* per connection due to pay channel subscription).
Assuming 50% STB usage for Chennai and 30% STB usage for rest of TN:
Chennai Analogue: 24 crore* (Profit at Min 15 crore*).
TN Analogue: 8.4 crore* (Just 70% share from 12 crore*).
Chennai STB: 60 crore*. (Profit at Min 45 crore*)
TN STB: 126 crore*. (Profit at Min 94.5 crore*)
Total Min Profit per yr: 162 crore*.
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Assuming out of 1 crore subscribers (Chennai + rest of TN) 25% goes (25 lakh*) for broadband then per month Arasu would get a minimum profit of Rs 100* (MTNL minimum plan is Rs 250*) per connection then 25 crore* per month and 300 crore* per year additional profit.
If the planned broadband Internet and the other private cable channels across the state are taken into account with real full values then the given values might even cross a thousand.
[Regarding broadband connectivity In Tamil Nadu, RailTel the telecommunications arm of Indian Railways has 2,500 km of optic fiber cable and about 400 points of presence (PoPs) in Tamilnadu alone.
RailTel is in a revenue sharing partnership which will allow multi-system operators (MSOs) and local cable operators (LCOs) to draw from its optic fibre cable (OFC) points of presence (PoP) which have been established along with the railway lines across the state to provide internet connectivity to the rural households.
RailWire currently delivers Internet speeds ranging from 256 kbps to 10 mbps. Source: Railnews]
* Please note that all the given values are purely assumtional/approximation and actual figures may vary by large values based on various factors.
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Trust me, Arasu's potential is way higher than what we all assume of even if it stays with CAS.
(Please keep that "athai meesai (someone gave this example recently)" story away and discuss official figures whoever is interested).