Cable service providers rally post TRAI order, Hathway soars 17%
TRAI issued an order to allow Multi-System Operators to charge a carriage fee from broadcasters
Shares of cable service providers are in limelight after the Telecom Regulatory Authority of India (TRAI) had issued an order to allow Multi-System Operators (MSOs) to charge a carriage fee from broadcasters.
According to TRAI's new norm, MSOs will have to offer a minimum of 100 free to air channels for Rs 100 as part of the basic service tier. Though the revenue share is based on mutual negotiations but in case of disagreements MSOs will get 65% of the revenues while the balance will be shared by local cable operators, the report suggests.
Among the individual stocks, Hathway Cable and Datacom has surged 17% to Rs 179 with over ten-fold jump in a combined trading volumes. Den Networks has rallied 8% to Rs 117, followed by Wire and Wireless India (WWIL) by 5% at Rs 10.20 on the Bombay Stock Exchange.