Indian Express
SCV Licence Killed, 1.5L Clients in Fix
CHENNAI: The Union government’s order on Wednesday cancelling the licence of Kal Cables, the parent company of Sumangali Cable Vision (SCV), which once enjoyed monopoly status in the cable TV sector here, would mean that the investment of nearly 1.5 lakh customers in purchasing the company’s set-top boxes would go down the drain.
According to industry sources, Kal Cables is still the market leader and controls more than 50 per cent of business in Chennai, followed by TCCL, Akshaya, Aadhar, Crystal and state-owned Arasu cable.
Cable operators said each of the company’s customers had bought the set-top box, which is mandatory to access digital cable signals, at a cost of Rs 1,500. “Currently, SCV has 1.5 lakh subscribers and the cost would be huge which the consumer has to pay,” a cable operator said.
The Information and Broadcasting Ministry, which cancelled the registration following the denial of security clearance by the Ministry of Home Affairs, has ordered a 15-day notice from the date of the cancellation order to wind up the company’s operations and switch off signals, in a communication dated August 20, 2014.
Cable operators welcomed the Union government’s order.
“They had total monopoly for over a decade. An end to this will boost the prospects of independent cable operators. Sun Group, through political interference, controlled the media. We now hope things will improve,” said P Shakilan, founder of Tamilaga Cable TV Operators General Welfare Association.
Ind Exp