Arasu Cable tv to launch the Digital Cable in Chennai on Today

Arasu Cable tv to launch the Digital Cable in Chennai on Today

Arasu Cable to start operations in Chennai from November.

Corporation will soon start distributing set-top boxes to the customers in Chennai market.

Honr'ble Chief Minister inaugurated the service through video conferencing in chennai. The Multi-System Operator (MSO), which was originally launched in September last year, currently has around 58 lakh subscribers in various parts of the State. For Chennai, 100 free channels would be offered for Rs. 70, and additional pay channels can be chosen on payment

Arasu Cable to start operations in Chennai from November

Corporation will soon start distributing set-top boxes to the customers in Chennai marke

Tamil Nadu government owned multiple system operator (MSO) Arasu Cable Corporation to start its operations in Chennai, one of the biggest markets in the country. Tamil Nadu Chief Minister J Jayalalithaa is expected to launch the control room for the Corporation in Chennai on Saturday.

Industry and Government sources have confirmed the development. According to industry estimates there are around 40 lakh connections in the Chennai market, which controlled by six licensed MSOs and around 1500 cable operators.

Sources added that the Corporation will soon start distributing set-top boxes to the customers in Chennai market, ahead of Government's cable digitisation deadline for four metros – Delhi, Mumbai, Chennai and Kolkata – which is on October 31, 2012.

Government sources said that the Corporation got the approval from the Centre government to start operations in Chennai after the infrastructures were set up for cable digitisation, which can offer upto 500 channels to the viewers against 80 now. Service of Arasu is expected to start from November in Chennai.

According to experts, the key challenge to digitisation of Cable TV services is sourcing enough set-top boxes at a rate affordable to the end users is, perhaps the biggest issue facing the industry today. There is limited visibility in the industry at this point whether it would meet the deadline again, which was earlier extended from June to October.

It may be noted, the Corporation was relaunched by the AIADMK Government on September 2, 2011 to take over cable operation in the state. The Corporation commenced operations across the State except Chennai since it under conditional access market.

Tamil Nadu is one of the biggest television market in the country and estimated at Rs 12,220 crore is expected to touch Rs 22,540 crore by 2016, according to Deloitte-FICCI report and when it comes to subscription Tami Nadu is the largest market in South India. In 2012 revenue collection was expected at Rs 2,940 crore and expected to increase to Rs 5,400 crore by 2016.

The entry of state-run Arasu in TV distribution space has resulted in a significant change in the dyanmics of Tamil Nadu TV distribution scene. Subscripers in Tamil Nadu are now being offered cable services at considerable lower price points at a monthly charge of Rs 70. As a result, the subscription revenues in the state have witnessed growth rates lower than other markets in South, said in the Report.

However in the back drop of digitisation directives, it remains to be seen on how market participants across distribution platforms react to retain as well as increase their respective consumer bases. Going forward, as platforms, products and price points stabilise, Tamil Nadu is expected to reach growth levels at par with the other regional markets, further added in the report.

Source : business-standard

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