STAR is keen on Hathway Cable & Datacom to reach a truce with rival multi system operator (MSO) INCablenet in a bid to increase revenue collection from cable operators.
Rajan Raheja-promoted Hathway and the Hinduja-owned INCablenet had met at Star office in Mumbai late last week to discuss how the MSOs can end their fight and come to an agreement on respecting each other’s territories and last mile cable operators.
INCablenet and Hathway subsequently had a meeting with their respective distributors, pursuing them to increase declarations of their subscriber base of paid connectivity by around 25 per cent. Alarmed by the arm twisting, distributors of the two MSOs are planning to have a meeting to press forward their demands.
Distributors of INCablenet have already formed a seven member committee to put up an proposal to the management before making a commitment on increasing their collections for last mile cable operators. They are meeting on Monday and are expected to demand a prime band allocation to run their own cable channels. They also want to be permitted to run a few channels as compensation to the 25 per cent increase in connectivity they have to declare at Rs 50 per subscribers. Hathway also had a similar meeting with their distributors.
According to industry sources both INCablenet and Hathway have already agreed to exchange movies from their libraries to run their cable movie channels, CVO and CCC.