Wednesday, June 17, 2015
Hathway bets big on broadband business
Betting big on the recent launch of its ultra high-speed internet network in six metros, Mumbai-based cable and broadband services provider Hathway is planning to shore up revenues from the broadband services segment from 20% to 50% in the future, said Hathway managing director and chief executive officer Jagdish Kumar on Tuesday.
The company had clocked revenues of Rs 1,831.60 crore in FY15 and has planned a capex of Rs 500 crore this FY, of which Rs 280 crore is earmarked for the broadband segment and will be primarily invested in setting up infrastructure.
"Internationally, the trend is that broadband subscribers are exceeding cable TV subscribers. In our case, the cable segment accounts for 80% of revenues while broadband accounts for the rest. Eventually we will also become a broadband company that 'also' provides cable services," Kumar said, adding that growth will be mainly driven by internet usage shifting to homes in India. Hathway broadband services president Rajan Gupta pointed out that the company will be consolidating its base in the six metros where it has recently launched its ultra high-speed internet network and focus on acquiring new customers and growing in these cities this fiscal. During the next fiscal, it will work towards getting ultra high-speed internet network connections in other centres like Vizag as well, he added.
"Nearly 99% of the users who access internet at homes experience speeds of less than 5 mbps and are paying anything between Rs 500 to 650 per month. We are providing ultra high-speed internet connection with 50 mbps speed for Rs 699 as we have the requisite technology," he said. According to Gupta, this new service will help the company treble its user base in Hyderabad market from 50,000 to 1.5 lakh this fiscal.
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