Cable multi-system operator (MSO) DEN Networks is implementing a two-pronged strategy — to expand its broadband services in smaller towns and strengthen its high-definition (HD) subscriber base to boost its revenues. In addition, the company is working on launching its 4K set-top boxes (STBs).

SN Sharma, CEO, DEN Networks, told BusinessLine : “For the broadband business, we realised that the metro towns have become cluttered with multiple players vying for a share of the market. However, there is a strong demand for quality broadband services even in smaller cities, where we have already invested in setting up our infrastructure due to the digitisation drive. As a strategy, we have decided to expand to smaller towns to grow our broadband business further.”

The company is rolling out its broadband services in phases in 20 smaller towns in States such as Uttar Pradesh, Bihar and Rajasthan. “We believe there is potential to gain about one lakh broadband subscribers from these 20 cities in the next 18-24 months by leveraging on our existing infrastructure,” Sharma added.

Talking about the strategy to grow the HD subscriber base, he said: “We are also sharply focusing on growing our HD STB subscriber base in collaboration with our LCO (local cable operator) partners. We are seeing encouraging demand from both big and small towns for HD STBs.”

DTH challenge

The company is offering consumers HD STB with attachable wi-fi dongle to enable transformation of any non-smart TV to smart TV. Sharma admitted that DTH companies have been ahead of the cable TV industry in promoting HD boxes. HD STB connections are expected to play a key role as MSOs and the cable industry look at earning higher revenues and monetisation, after investing heavily in digitising cable TV services, Sharma further said.

“We aim to have about one million HD subscribers in one-two years,” he added.

DEN Networks currently has about 11 million digital subscribers and is one of the leading national cable TV players in the country. “We have been focused on increasing cable subscription revenues and ARPUs (average revenue per user) and accelerate our subscription collections across markets and we are making good progress with this strategy,” he added.

The company is also working on launching its 4K Android STB which will support ultra-HD video quality. It is going to be a hybrid STB supporting cable TV and interactive content using broadband network with many additional features.

“We want to ensure that we keep pace with the evolving technologies and global trends and be prepared for future disruptions,” said Sharma.

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