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The stocks of Hathway Cable & Datacom and Den Networks saw a sharp uptick on reports that Reliance Jio was planning to acquire a company in the cable television space to improve its broadband reach. In fact, in the past few months, stocks of cable companies, or listed multi-system operators (MSOs), have been in demand (see chart). However, the road ahead may not be smooth, even as there is scope for consolidation and potential for growth.MSOs provide fixed-line paid cable services mainly to local cable operators (LCOs), which in turn carry the feed to end consumers. They also provide broadband services, which are yet to contribute significantly to revenues for most of them. While fixed broadband is expected to grow at a rapid pace given the penetration of under 7 per cent compared to 20-50 per cent in key developing economies, higher competition from mobile players could limit the gains for MSOs. Further, the entry of Reliance Jio, which already has an MSO licence, could aggravate