Broadband services by Hathway and SCV

Venkatachari Jagannathan
31 May 2000

The cable TV business can no longer be considered a low value business. On the other hand, thanks to the convergence of technologies, the valuations of such businesses are set to reach dizzy heights.

According to a report, Siti Cable, the cable distribution arm of Zee TV network, is valued at $ 3.5 billion. And naturally, the fight to control cable TV distribution is intense.

The strategic business agreement signed between Sumangali Cable Vision (SCV), Chennai, and Hathway Cable & Datacom Private Ltd, Mumbai, also takes into account their proposed net-over-cable venture in Chennai.

As per the agreement, each one will offer the broadband services only via their cable operators. As a result, the area of operations have been strictly demarcated.

While Hathaway Cable is all set to launch its services from June as its infrastructure is in place, SCV has signed an MOU with Mahanagar Telephone Nigam Ltd (MTNL) for the purpose.

According to Mr. E.V.S. Chakravarthy, vice president, Hathaway Cable, the company is investing around Rs 25 crore to develop the needed infrastructure in Chennai. Already, the Rajan Raheja group company has rolled out its broadband service in Mumbai and Bangalore. On the anvil are similar services in cities like Hyderabad, Vizag, Pune, Delhi.