Cable companies await signal on digitisation deadline

This week, stocks of companies that are in the cable distribution businesses such as Hathway Cable and DEN Networks will remain in focus, as the Government will decide on the deadline for digitalisation. The passage of the Cable Television Networks (Amendment) Bill has made it mandatory for every cable connection in the four metros to have a set-top box or a direct-to-home system by June 30. So far, the Government has indicated that it is firm on the deadline. However, with not many households opting for the new system, particularly in Chennai and Kolkata, there is hope that the Government might extend the deadline for switchover. Recently, a PTI report quoted the Zee group Chairman, Mr Subhash Chandra, as saying that he has urged the Government to stick to the proposed deadline of digitisation. According to him any extension of the deadline would be detrimental to the sector as it would send a wrong signal to the stakeholders as well as investors so far as the policy implementation is concerned, the report added.