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Cable Operators Initiate Tariff Hikes Amid Increasing Costs From Broadcasters

Multi-Service Operators (MSOs) in the cable television industry have implemented tariff increases ranging from 5% to 10% effective October 1. This decision comes as a direct response to the broadcaster tariff hikes that began in August. The aim is to absorb most of the broadcaster-driven cost hike while passing only a small portion on to consumers .

| Published on October 3, 2024

Cable Operators Initiate Tariff Hikes Amid Increasing Costs From Broadcasters

Multi-Service Operators (MSOs) in the cable television industry have introduced tariff hikes of 5-10% starting October 1, in response to the broadcaster tariff increase that began in August. 

According to media reports, Siti Cable has already implemented the price hike, effective October 1. Meanwhile, other MSOs are either preparing to introduce the increase in the coming month or actively discussing strategies to minimise its impact on subscribers. 

The aim is to absorb most of the broadcaster-driven cost hike while passing only a small portion on to consumers. 

As per media reports, Meghbela Broadband Co-founder, Tapabrata Mukherjee, said, “We have not yet raised our tariffs, but it has become inevitable. We’ve been absorbing increased costs for the past two months, but we can no longer sustain it. On average, we will raise tariffs by 5-6%, though other broadcasters have hiked rates by more than 10%, and in some cases, by as much as 20%.”  

He stated that his firm, in collaboration with local cable operators, will cover approximately 10% of the cost increase on their side. 

Suresh Sethia, Director of Indian Cablenet, shared a similar perspective, explaining that Siti Cable kept its tariff increase minimal to stay competitive, especially against mobile users, with younger audiences gravitating towards short-form content on platforms such as YouTube, Facebook, and OTT services. 

“Our price hike ranges between 5-10 per cent across different packages,” he stated.  

Mukherjee confirmed that other operators are likely to adjust to the increased costs within the next month. 

In discussing the broader landscape, Mukherjee noted that out of the 1.5 crore set-top boxes originally installed following the government’s rollout of the new system, only approximately half are currently active. 

Sethia noted that the total number of cable connections in Bengal has dropped to approximately 68 lakh, a decrease from one crore four years ago.  

In light of evolving consumer behavior, the cable TV industry is implementing innovative strategies to maintain its subscriber base. 

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