Shares of broadcasting companies and cable service providers rose over 5 per cent on the bourses today after a Bill aimed at digitisation of cable TV was passed by the Lok Sabha yesterday.

Cheering the news, companies like Wire and Wireless India, Hathway Cable, Den Networks and Dish TV opened on a higher note on the bourses.

Shares of Dish TV surged 5.44 per cent to an early high of Rs 63.90, while Hathway Cable rose 3.44 per cent to an early peak of Rs 117.20. Similarly, Wire and Wireless India shares gained 1.85 per cent and Den Networks climbed 1.4 per cent.

The Information and Broadcasting Minister, Ms Ambika Soni, said the measure was a major step toward reform in the sector, which would enable digitisation of analog TV networks and bring India on par with other countries like the US, UK, Korea and Taiwan.

Experts said digitisation will help the cable network industry in the long-term, which is why industry stocks gave a positive response to the move.

Country wide digitisation is expected to be achieved by December 31, 2014. The measure would benefit customers by providing a la carte selection of channels and video-on-demand, among other things, while broadcasters and cable operators would benefit from transparency, reduced dependence on TRPs and ad revenues and increased subscription revenue.

It will also benefit consumers in terms of high quality viewing and more TV channels.

Related Topics