Reliance Jio Media puts cable TV launch on slow track

Thakur

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Reliance Jio Media has put its cable TV launch in Phase III towns of digital addressable system (DAS) on the back burner, implying that the entire focus of India’s richest man Mukesh Ambani will initially be on the fourth-generation (4G) telecom play and broadband rollout.

Changing the original plan of aggressively entering the MSO (multi-system operator) business in DAS Phase III towns ahead of the 31 December 2015 deadline, Reliance Jio in its first outing is looking at tying up with local cable operators (LCOs) for broadband only.

Talks have already started with the LCOs for partnering on broadband services and a commission fee structure is being worked out. “Cable TV will not be the first horse out of the Reliance Jio stable. The priority is on launching 4G services while simultaneously working on the wired-access fibre-to-the-home [FTH] project. LCOs are being approached for broadband and not for digital cable TV services, ” a source familiar with the development said. Digital cable TV is turning into a black eye for several networks.

With the MSO–LCO tussle on revenue share continuing and packaging of channels for consumer selection largely absent, the business model for digital cable needs to evolve.

Reliance Jio Media could be waiting for the business norms to correct before it steps into the MSO business.

“Reliance Jio Media officials have been talking to us on partnering for broadband.

They have not been talking on tying up with us for cable TV services.

There is no mention of digital headend or set-top boxes. . Knowing Reliance, the plan could, however, change if an opportunity arises,” several LCOs across cities told TelevisionPost.com.

Incidentally, Reliance Jio Media, a subsidiary of Reliance Jio Infocomm, has procured a pan-India MSO licence from the Ministry of Information & Broadcasting (MIB).

Read more at: 

http://www.televisionpost.com/cable/reliance-jio-media-puts-cable-tv-launch-on-slow-track/
 
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