Hathway set to surpass MTNL as fourth largest broadband player

MUMBAI: Broadband service provider Hathway Cable and Datacom is all set to surpass MTNL to become the fourth largest broadband player in the market.

According to Telecom Regulatory Authority of India’s (TRAI) telecom subscription data report for December, MTNL and Hathway have tied with 0.78 million wired broadband customers each.

Even as MTNL is losing susbcribers at regular interval, the private broadband players have been increasing their subscriber base through aggressive expansion strategy.

Hathway had entered the top 5 wired broadband players list in September 2017 by displacing Vodafone-owned You Broadband. The company is now on course to pip MTNL to become the fourth largest wired broadband player.

As on 31st December, 2018, the top five Wired Broadband Service providers were BSNL (9.17 million), Bharti Airtel (2.27 million), Atria Convergence Technologies (1.39 million), MTNL (0.78 million) and Hathway Cable & Datacom (0.78 million).

It is pertinent to note that MTNL has reported the same number of broadband customers for December as November.

Hathway Cable and Datacom’s standalone results, which comprises of the broadband business, has returned to the black with a net profit of Rs 6.5 crore as against a net loss of Rs 5.9 crore in the trailing quarter. Operating EBITDA declined 5% QoQ to Rs 51.3 crore compared to Rs 53.8 crore.

Broadband subscription income increased 3% to Rs 134.9 crore from Rs 130.6 crore. Total expenditure was up 9% at Rs 83.6 crore from Rs 76.8 crore.

The company added 15,000 Home Passes during the quarter taking the total Home Pass to 5.54 million. It added 15,000 subscribers QoQ basis taking the total subscriber base to 780,000. ARPU declined to Rs 662 from Rs 672 a quarter ago. The new customer ARPU is slightly higher at Rs 700 excluding taxes.

The bandwidth consumption per consumer increased to 0.75 Mbps in December 2018 from 0.72 Mbps in November. The bandwidth increase per customer is healthy from long term wireline industry relevance perspective.

As per the reports received from 308 operators in the month of December 2018 as compared to 306 operators in previous month, the number of broadband subscribers increased from 511.90 million at the end of Nov-18 to 518.55 million at the end of Dec-18 with a monthly growth rate of 1.30%.

Top five service providers constituted 98.57% market share of the total broadband subscribers at the end of Dec18. These service providers were Reliance Jio Infocomm Ltd (280.12 million), Vodafone Idea (107.92 million), Bharti Airtel (100.26 million), BSNL (20.55 million) and Tata Tele. Group (2.26 million).

As on 31st December, 2018, the top five Wireless Broadband Service providers were Reliance Jio Infocomm Ltd (280.12 million), Vodafone Idea (107.90 million), Bharti Airtel (97.99 million), BSNL (11.38 million) and Tata Teleservices (1.79 million).

You may be interested