Situations are not much different in other sectors also. Atleast they hv the capability to repay bank emi unlike many companies like Rcom, Sahara, kingfisher etc
MUMBAI: After the merger pact between Dish TV and Videocon d2h, it is the turn of Tata Sky and Airtel Digital TV to explore the possibility of a deal.
The two direct-to-home (DTH) companies are in exploratory talks for a merger. This is part of a broader discussion between the Tata Group and Bharti Enterprises to evaluate an alliance that would also involve their telecom, overseas cable and enterprise services.
While there is a need for the Indian telecom market to consolidate in the wake of an aggressive pricing strategy rolled out by Reliance Jio, the DTH sector also needs to narrow down the number of players to offer better scope for profitability.
Dish TV and Videocon d2h are merging their assets to create the largest DTH company in India and the second-largest in the world by subscribers. While Dish TV ended FY17 with 15.3 million net subscribers, the DTH arm of Videocon Group had a base of 12.91 million. The combined strength of the merged entity would thus be a whopping size of over 28.31 million subscribers.
If Tata Sky and Airtel Digital TV decide to merge, it will further narrow down the private DTH operators from six to four. Sun Direct and Reliance Digital TV also could combine, thus reducing the DTH players to three.
A merger will give satellite boost to the merged co as one needs to have just one licence for a particular channel compared to two before.. more channels, more free TPs. damn!
looks like the companies now believe in
United we stand
divided we fall!
it will further narrow down the private DTH operators from six to four. Sun Direct and Reliance Digital TV also could combine, thus reducing the DTH players to three.
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