Hathway Cable said that its board would meet on October 15th to consider demerging its broadband business, the company informed in a BSE notification. The company had been mulling hiving off the business since October last year. But at the time, the definitive terms and conditions of the demerger were still being evaluated.
The notification added that the demerger of the ISP Business from Hathway Cable could happen after payment of Rs 98.05 crore by Hathway Broadband to the parent company.
Interestingly, Hatway Broadband said that it would also provide other value added services such as ecommerce, games, data transmission, teleshopping and video conferencing in its memorandum of articles and association. However there was no mention about public WiFi. Its peer Ortel Communications recently said that it has 30,000 people accessing internet from its public WiFi hotspots.
Hathway has been looking to increase its share in the broadband market for a while now, with initiatives like Broadband Movies with Eros Now. The company has also been offering a 50 Mbps default minimum speed in the cities of Bangalore, Hyderabad, Mumbai and Pune, although with abysmally low data caps. Hopefully with this demerger, the company’s Internet business will be able to offer better and more competitive services, especially when competitors offer double the data caps with twice the speed for similar prices.
Hathway Cable is a multi-system operator (MSO) which distributes television channels. Hathway Broadband is a wholly owned subsidiary of Hathway Cable.
Number of broadband customers
Hathway’s standalone broadband subscriber base stood at 490,000 while at the consolidated level it has 720,000 subscribers. You Broadband, recently acquired by Vodafone, has 560,000 wired broadband subscribers, as indicated by this Television Post report. However, BSNL continues to reign with over 9.88 million wireline broadband subscribers followed by Airtel with 1.82 million. ACT Fibernet however is closing in on the competition 1.02 million connections.