The multi-system operator has demerged its broadband business into its wholly-owned subsidiary, Hathway Broadband
BestMediaInfo Bureau | Mumbai | October 16, 2015
The Board of Directors of Hathway Cable & Datacom has in principal given its approval to demerge, transfer and vest the company’s entire broadband business into its wholly-owned subsidiary, Hathway Broadband, subject to requisite approvals from the shareholders, creditors, High Court(s), Department of Telecommunications, Stock Exchanges, Securities and Exchange Board of India and other applicable regulatory/ governmental authorities.
This move is aimed at accelerating value creation for Hathway shareholders. The separation will allow Hathway to aggressively focus on the significant growth potential for high speed data and related services in India.
Globally, fixed broadband has emerged as a key driver of technology adoption and overall GDP growth. India lags behind most countries, including countries in Asia, in wireline broadband penetration, reaching only about 8 per cent of the potential universe. Hathway Broadband intends to take the lead in driving wireline broadband penetration in India. The company believes that its hybrid fibre coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.
Jagdish Kumar, MD & CEO, Hathway Cable & Datacom, said, “We are uniquely placed to leverage our leading position in the cable television industry to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique compared to our parent cable television business. The separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to our subscribers.”