Scatmag.com

July 2018


BUSINESS NEWS


INTEL CEO OUT

Intel CEO Brian Krzanich has resigned following an internal investigation into a past relationship with an employee. The relationship was characterized as consensual but was in violation of the company's nonfraternization policies for management staff.

Krzanich is being replaced by Intel CFO Robert Swan, who will serve as interim CEO while the company is looking for a new permanent CEO.


DISHTV-VIDEOCON RESULTS

Dish TV-Videocon d2h has published results following its merger with Videocon d2h.

The combined entity now has a subscriber base of 23 million, and a market-share of 37%. The combined entity claims its ARPU has skyrocketed to ₹ 201. Note that prior to the merger, Dish TV's standalone ARPU was ₹ 144.

Subscription revenues for the combine were ₹ 1377.1 crores for the quarter, compared to Dish TV's ₹ 691.8 crore.

Presuming that the financials for fiscal 2018 had represented 12 months each of Dish TV India Limited and Videocon d2h Limited, operating revenues of the company would have been ₹ 6237.7 Crores.


GTPL HATHWAY ENTERS MUMBAI

GTPL Hathway has commenced operations in Mumbai & may also acquire small cable TV networks to grow its business.

It plans to spend ₹ 150 crore in FY19, all India, to grow its cable TV and broadband businesses.

GTPL Hathway MD Aniruddhasinh Jadeja said that the company has launched a special scheme offering STBs + 1 year's subscription in new markets in Mumbai & DAS Phase II areas. Its growth in DAS Phase 2 markets has been only 7 to 8%.

Jadeja also revealed that GTPL Hathway has done 2-year deals with broadcasters, stretching upto 2019-20. These will see content cost jump 12% to 15% each year. The MSO could be a major looser in content costs if the TRAI's new tariff order is implemented.

For its broadband operations, GTPL Hathway plans to add almost 500,000 homes passed, and hopes to 150,000 new customers, but its churn rate is very high at 20-25%. As on 31 March, the company had 2.8 lakh broadband customers.




HATHWAY: 50K NEW B'BAND SUBS

Hathway Cable & Broadband added around 50,000 new subscribers from Jan to March 2018, increasing its broadband subscribers by 6.7% to 800,000. This was achieved from 5.2 million homes passed. Hathway claims 52% of the total MSO cable broadband market.

Average data consumption per subscriber stood at 103 GB for the month of March 2018, up from 100 GB in December 2017 and 98 GB in October 2017. The company said that 54% of its consumers have monthly data limits of 1,000 GB, and average speed in the quarter stood at 60 Mbps.

Annual broadband revenue grew 10% to ₹ 544.5 crores. However, ARPU (excluding tax) declined 4% year-on-year from ₹ 740 to ₹ 710.


FDI CLEARANCE EXPEDITED

Having decided to turn down frivolous concerns raised by investigative agencies, the government has put in place a detailed protocol for clearing all foreign direct investment (FDI) proposals as part of an exercise to speed up approvals and bring about greater transparency. Several FDI proposals had been delayed despite the 60-day deadline put in place at the time of FIPB abolition.

After the Foreign Investment Promotion Board (FIPB) was wound up last year, over 95% of FDI proposals cleared automatically. However, those related to I&B, telecom, defence & aviation need clearance from their respective ministries.

On May 3, the home ministry had been asked to ensure that lowranking personnel do not hold up investment proposals by flagging unsubstantiated concerns.



GTPL HATHWAY: NEW CFO

GTPL Hathway has appointed Viren Thakkar as Chief Financial Officer w.e.f. 2nd July. He takes over from Jayanta Pani who resigned after a year and half with the company.



LOGO CONTEST FOR PUBLIC WI-FI

TRAI has announced a name and logo design contest to enable citizen participation into its ambitious vision for affordable broadband proliferation through public Wi-Fi networks. A cash award of ₹ 50,000 each will be given to the selected winners of the "Name" & "Logo".

This is yet another instance of direct engagement with the public for designing of logos of key or flagship initiatives. The government has earlier chosen new sign of the rupee and the Swachh Bharat logo from public contests.

TRAI has recommended easing of licenses for public WiFi deployment, to popularise public WiFi along the lines of PCO telephone's years ago.

Telcos have opposed the move as it dilutes their exclusive rights.



AT&T: REAL-TIME AD EXCHANGE

AT&T CEO Randall Stephenson said now that the Time Warner deal is done, AT&T is on track to launch a real-time ad exchange platform within 24 months.

AT&T's targeted ad exchange platform will differentiate from digital platforms like Facebook and Google by offering marketers the chance to place their brands next to premium content.

Though it will take some time before AT&T's exchange is ready, Stephenson said right away they will commence selling Turner's inventory paired with AT&T's consumer data.

Stephenson said that AT&T's ad business, currently worth around $1.8 billion, is clocking double-digit growth annually.



YOUTUBE MEMBERSHIPS & MERCHANDISE

YouTube is introducing new tools to generate revenue from their videos outside of traditional advertising.

YouTube will soon roll out channel memberships, merchandising, marketing partnerships via FameBit and the launch of 'Premieres,' which offers a middle ground between prerecorded video and live streaming.

Memberships will be priced at $ 4.99 per person per month, which also gives access to exclusive digital goods, like a custom badge and emoji. n