Thakur
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Ortel Communications’ average buyout price for local cable operators (LCOs) is Rs 2,100 per subscriber and could inch up to Rs 2,500 as digitisation takes root in Phases III and IV, multiple sources familiar with the development said.
The acquisition translates to 15-18 months of the LCO’s revenue. Outside its home turf in Odisha, Ortel has presence in Andhra Pradesh, Chhattisgarh and West Bengal.
National multi-system operators (MSOs) like Hathway Cable & Datacom and DEN Networks are not taking the acquisition route.
Essel-controlled Siti Cable Network, in contrast, initiated acquisition of direct points from the LCOs in the second quarter of FY15, initially in the national capital region (NCR). By the end of the third quarter, its direct point subscriber base was approximately 40,000.
For Ortel Communications, the acquisition of LCOs is a key strategic step as it seeks to have one million subscribers by March 2017, up from 530,000 in FY15.
In the first quarter of this fiscal, the MSO added 12,217 subscribers, mostly through the acquisition route.
Ortel pays part of the acquisition price upfront while the remaining is rolled over in a revenue-share arrangement over five years.
In the acquisition route, a capital expenditure (capex) of Rs 5,000–5,500 per subscriber is what Odisha’s dominant MSO will incur.
This will include the acquisition price paid to the LCO per subscriber and fully loading the services by way of network development and investments in set-top box (STB) and cable modem.
Read more at:
http://www.televisionpost.com/cable/ortels-buyout-price-for-lcos-and-capex-plans/
The acquisition translates to 15-18 months of the LCO’s revenue. Outside its home turf in Odisha, Ortel has presence in Andhra Pradesh, Chhattisgarh and West Bengal.
National multi-system operators (MSOs) like Hathway Cable & Datacom and DEN Networks are not taking the acquisition route.
Essel-controlled Siti Cable Network, in contrast, initiated acquisition of direct points from the LCOs in the second quarter of FY15, initially in the national capital region (NCR). By the end of the third quarter, its direct point subscriber base was approximately 40,000.
For Ortel Communications, the acquisition of LCOs is a key strategic step as it seeks to have one million subscribers by March 2017, up from 530,000 in FY15.
In the first quarter of this fiscal, the MSO added 12,217 subscribers, mostly through the acquisition route.
Ortel pays part of the acquisition price upfront while the remaining is rolled over in a revenue-share arrangement over five years.
In the acquisition route, a capital expenditure (capex) of Rs 5,000–5,500 per subscriber is what Odisha’s dominant MSO will incur.
This will include the acquisition price paid to the LCO per subscriber and fully loading the services by way of network development and investments in set-top box (STB) and cable modem.
Read more at:
http://www.televisionpost.com/cable/ortels-buyout-price-for-lcos-and-capex-plans/
