Mukesh Ambani’s Reliance Industries (RIL) has started negotiations to buy the country’s largest multi-system-operator (MSO) Hathway Cable and Datacom. This deal will help the company to launch its GigaFiiber High-Speed Home Broadband service soon.
It is believed that Hathway can cost Rs 2,500 crore. The cable TV company is called the SMO in the industry. Such companies sign content and carriage deal with broadcasters and provide services to local cable operators (LCOs). This is not the first time that RIL’s eyes are on the TV industry.
Before this, in September last year, RIL was also talking to Sameer Manchanda for the acquisition of DEN Network. Although there was no communication between the two and Reliance’s management swiftly attempted to introduce the Gigabfiber service on its own.
Hathway had a debt of Rs 1,617 crores till March 31, 2018 and it wants to reduce the debt of 500 crores by March 2020. Industry experts say that buying Hathaway will speed GERO broadband speed. Hathway has 1.1 million cable TV subscribers and 8 million broadband users. 90% of these users have taken high speed plans. Hathway’s broadband business is 710 rupees monthly on average revenue.