One of BSNL’s IPTV partners, MyWay is shutting down its operations in India following poor subscriber uptake, according to The Hindu.

The report mentions that the company representatives have now started collecting back all the Set Top Boxes issued to customers in Chennai, although an official communication about the discontinuation hasn’t been conveyed to MyWay’s subscribers yet. A MyWay spokesman informed the publication that the group’s Indian operations were being discontinued since they had turned highly unviable. Although BSNL had claimed 3,000 subscribers in the state, MyWay had put it at 500, as per the report.

MyWay, a digital entertainment enterprise owned by Smart TV Group, had launched its IPTV operations in October 2009. It had entered into long-term contracts with MTNL and BSNL to provide co-branded interactive video services in India and claims to offer its services in 54 cities, accounting for 50% of the urban population.

This announcement comes hardly as a surprise since the IPTV scene seems to be in a pretty bad shape in the country. Aksh Optifibre, a BSNL and MTNL IPTV franchise, had earlier reported a decline in its revenue and was eyeing Dubai. MTNL had around 5910 IPTV connections as of February 2011, and Airtel had informed that it is going considerably slower on its IPTV service as compared to its DTH service. We wonder if we’ll see more vendors shutting down their IPTV operations in the coming year.