Scatmag.com

September 2019

1 MILLION ARASU STBS DISCONNECTED



BACKGROUND

Arasu Cable TV commenced business, after the AIADMK came to power in May 2011. Arasu offered 100 FTA + pay TV channels at a subsidised rate of ₹ 70 per month.

On April 17, 2017, Arasu received its DAS MSO license & commenced Digital CATV on September 1, 2017.

Arasu has so far procured 36 lakh digital STBs, of which 35.12 lakh Set Top Boxes have been distributed to consumers free of cost.


NEW TARIFF ORDER

TRAI's New Tariff Order (NTO) implemented a short while ago, establishes a minimum price for Pay TV channels, via a-la-carte or bouquets. In additional, consumers can be charged a Network Capacity Fee (NCF) of not more than ₹ 130 + 18% GST for the first 100 channels.

The new prices dictated by the NTO, effectively disallows Arasu from subsidising the price of Pay TV Channels. At best the MSO can waive off the NCF, but will then have to compensate its LCOs separately.

Arasu offered 3 packages

  • Basic package @ ₹ 120 plus GST (All FTA Channels)
  • A package @ ₹ 200 plus GST
  • 191 channels @ ₹ 220 plus GST.

Arasu Has Slashed Prices From ₹ 260 to ₹ 154 Per Month For All Channels







10 LAKH HOMES DISCONNECT

As a direct consequence, 10 lakh homes have decided not to renew Arasu's Digital cable TV Service.

Tamil Nadu's Chief minister Mr. Palaniswami admitted that Arasu had distributed 35.12 lakh STBs but in recent months, only 24 lakh were active.

Almost 10 lakh subscribers had preferred not to continue their Arasu subscription.


NEW PRICE DROP

To bring back its subscribers, Arasu has decided slash its subscription rates. Arasu will now offer 2 packages:

  • 142 FTA channels @ ₹ 141.60
  • 190+ Channels @ ₹ 154.

In effect the ₹ 220 + Tax package has been reduced to ₹ 154 including tax. n