Peace after war

31 May 2000

The cable TV business in Chennai is nearly 15 years old. Before the Rajan Raheja group''s entry with Hathway Cable & Datacom Private Ltd, the market was dotted with multiple small operators. Hathway Cable was the first corporate player to enter the Chennai market sometime back. It started to buy out operators and in those areas where it was not able to do so, the company promoted competition actively.

Complaints about Hathway Cable using strong-arm tactics, offering fancy incentives to its employees for buying out operators, undercutting rates to bag more subscribers were voiced and were stoutly denied by Hathway Cable. Soon, consolidation of cable operators started happening, with small players coming together to form a consortium.

It was at this juncture, Sumangali Cable Vision (SCV), sensing big business potential, stepped into the market. At the time of its entry, an official remarked that SCV entered the market mainly on the plea of some operators who wanted to stop the Raheja juggernaut from rolling over them.

Immediately, peace prevailed in the market place. But mud slinging, charges and counter charges flew thick and fast. This time, SCV was blamed for using government machinery to coerce independent cable operators to toe its line. SCV also denied such charges as baseless.

Slowly SCV got entrenched in south and central Chennai and also began nibbling into other Raheja areas. At this interesting stage, the treaty of peace between the two warring parties was signed recently.

Even as they were fighting, SCV and Hathway Cable were busy putting up poles for laying overhead trunk cables throughout Chennai.