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Shares of broadcasting companies and cable service providers jumped by up to 14 per cent on the BSE today after the Government approved an ordinance on digitisation of cable networks, a move that was welcomed by the broadcast industry.
Extending the previous session’s rally, shares of Hathway Cable & Datacom rose 13.51 per cent to a high of Rs 115.50 on the BSE. Similarly, Wire and Wireless (India) jumped 11.77 per cent to a high of Rs 9.49.
Others like Dish TV India and Den Networks gained 1.86 per cent and 6.41 per cent, respectively.
In the previous session, all these stocks had gained up to 20 per cent on the BSE.
Wire & Wireless (India) Ltd CEO, Mr Sudhir Agarwal, said: “This will reduce under-reporting and bring in transparency, resulting into a boost in subscription revenue.”
Digitisation of existing cable infrastructure will augment the channel carrying capacity, offer better quality and provide further scope for delivering value-added services like movie-on-demand and broadband for consumers, he added.
The Cabinet had yesterday approved the Digitalisation of Analogue Cable Systems Ordinance, which will empower consumers to high quality viewing and also a higher number of TV channels.
The target date for completely digitising the cable sector in cities with a population of more than 10 lakh is September 2014. Country-wide digitisation is expected to be achieved by December 2014.
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