Scatmag.com

November 2018


BUSINESS NEWS


AMBANI V/S AMBANI: 10,000 CR

NDTV has been sued for ₹ 10,000 crore by Anil Ambani's Reliance Group in an Ahmedabad court for its reportage on the Rafale fighter jet deal. The lawsuit is filed against NDTV's weekly show, Truth vs Hype, which aired on 29 September.

NDTV Group CEO Suparna Singh tweeted on 18 October, "We will fight this brazen attempt to harassment and intimidation." According to NDTV, "As the Rafale deal has become a larger news story in India, the Reliance group has been on a notice-serving spree; to sue a news company for ₹ 10,000 crore in a court in Gujarat on false and frivolous charges, ignoring facts that are widely reported everywhere and not just by NDTV, can only be interpreted as an unsophisticated warning to the media to stop doing its job."

NDTV also mentioned that the top executives of Reliance ignored repeated, multiple and written requests to appear on the show or comment on what is being widely discussed not just in India but in France as well - whether Anil Ambani's Reliance was transparently chosen as the partner for Dassault in a deal that saw India buying 36 fighter jets.

It has been reported in the press that Mukesh Ambani friendly firms HAVE acquired majority control in NDTV, since October 2017.


TRAI TO REVIEW SUBMARINE CABLE CHARGES

TRAI has floated a consultation paper to determine charges for accessing submarine cable bandwidth vital for internet connectivity & international telephony into India.

In 2012, TRAI fixed ₹ 36,000 per annum for low capacity STM-1 cable bandwidth and ₹ 6.25 lakh for high capacity STM-64 per unit capacity at the cable landing station.

These charges were challenged by Airtel & Tata Teleservices, in court, which has asked for a review.

"Consultation paper is released to re-work the figures of 'Utilisation factor' and 'Conversion factor' used to estimate the access facilitation charges and co-location charges in compliance to the Hon'ble Supreme Court order," the consultation paper said.

October 29 is the last date for comments & November 3 for counter comments.

The open house discussion will be held on November 5. There are presently 16 submarine cable systems, which connect India to the rest of the world, and exorbitant levies make bandwidth in India amongst the costliest in the world.


ACT FIBERNET FIGURES

ACT Fibernet broadband has submitted its financial details in its prospectus to SEBI, as plans to raise funds for an All-India expansion. Some highlights are indicated in Table-1.

ACT Fibernet had approximately 1.28 million wired broadband internet customers and 0.71 million cable TV customers as on December 31, 2017. It has the highest broadband ARPUs in the country, since it focuses on high speed wired broadband delivery, and was the first Indian ISP to offer 1 GBps to its customers @ ₹ 5,000 per month. It deploys Metro Ethernet Active FTTX & GPON technology.

It is the third largest wired broadband ISP, with over 5.4 million residential homes. (September 30, 2017).






TRAI TO DISCUSS NDCP

TRAI plans to hold consultations with several stakeholders in order to prepare a roadmap for the implementation of the new telecom policy, now called the 'National Digital Communications Policy 2018.'

"We are readying ourselves and will consult stakeholders on the policy aspects that require attention, "Chairman RS Sharma said. On 26 September the Cabinet approved the National Digital Communications Policy that aims to attract $100 billion of investment and create as many as 40 lakh new jobs by 2022 in the sector.

The policy also seeks to ensure broadband coverage in currently uncovered regions with every citizen to be provided with connectivity of up to 50 Mbps.

Gram panchayats or village blocks, according to the government, would be provided with up to 1GBPS connectivity by 2020 and 10 GBPS by 2022.


TV DRIVES ABP GROWTH

The ABP (earlier Anand Bazar Patrika) Group's TV broadcast business 'ABP News Network (ANN)' has contributed significantly to the group's FY18 net profit growth. ANN owns 4 news channels in India. The company's net profit has jumped to ₹ 99.87 crore for the fiscal ended 31 March 2018 compared to ₹ 53.83 crore in the previous fiscal.

In H1FY18, ANN had earned a net profit of ₹ 22.76 crore compared to ₹ 19.48 crore in H1 FY17 on a total operating income of ₹ 219.6 crore

The ABP Group's print media business is concentrated in Eastern India & has posted satisfactory financial performance in FY18 & Q1FY19. This is despite increasing newsprint prices & declining advertising revenue in the print media.



ZEEL PROFIT DOWN 38%

Zee Entertainment Enterprises Ltd (ZEEL) has reported a 38.23% decline in its consolidated net profit at ₹ 386.10 crore for the second quarter ended September 30, 2018.

This was despite a 13.98% increase in consolidated income to ₹ 2,034.79 crore.

Total expenses rose 20.8% to ₹ 1,386.45 crore.

Ad revenues were up 22.7% to ₹ 1,210.6 crore. Of this, domestic ad revenues rose 23.3% Y-o-Y to 1,152.6 crore. International advertising revenue for the quarter was ₹ 58 crore.

Q-2 subscription revenue was ₹ 608.2 crore, a growth of 21.3%. Domestic subscription revenue grew by 26% YoY to ₹ 509.3 crore. International subscription revenue was ₹ 98.9 crore.



NETFLIX ADDS 7 MILLION SUBS

Netflix added 7 million new subscribers worldwide, during Q-3 2018, bringing its total memberships up to more than 137 million.

Netflix's revenues grew 34% to $4 billion in Q-3. It earned 89 cents per share, more than the 68 cents per share anticipated. The company's stock rose 13%.

The Q-3 results marked a comeback after a weak second quarter in which it added only 5.15 million new subs.

Q-3 growth was driven by 5.87 new international subs & 1.09 million US subs.

Netflix has long reported 2 subscriber figures: Paid Memberships, and total memberships, which also includes people using free trials or other promotions. Netflix plans to phase out the total memberships figure by 2020, when it will stop reporting on end-of-quarter free trials. As of the third quarter, Netflix has 130.4 million paid memberships. n