MUMBAI: Indusind Media & Communications Ltd (IMCL), the Hinduja Ventures Ltd (HVL) subsidiary, is highly optimistic about the impact of the new tariff order on its business. The MSO asserts that the new regime ensures a more equitable distribution of economic benefits in the value chain. After overcoming major legal battles the new tariff order by Telecom Regulatory Authority of India (TRAI) has finally come to effect from 1 February.

While earlier the deals between broadcasters and distribution platform operators (DPOs) were not transparent and consumers did not have the option to select channels as per their choice, with the new regime the industry is moving towards an MRP based model. IMCL in its third quarter earnings release said that through proper packaging and pricing and giving the consumers the channels of their choice, the company will now be able to move very fast on the path to profitability. The MSO also added that the change will also enable the company to have a better return on capital employed.

HVL reported a total income of Rs.10.16 crore for the third quarter on 7 February while the media and communication segment contributed 10 crore. HVL operates across three segments including media and communication, real estate and investment, and treasury and IMCL comes under the first category.

"IMCL being a progressive player in the MSO industry has looked at the developments in the industry both with respect to the new tariff order and the consolidation very positively and is today in the forefront of providing excellent consumer service through seamless implementation of the new tariff order while ensuring excellent viewership through world class technology. This along with efficient packaging and pricing adopted by it will result in the company move on the path to profitability," IMCL CEO Vynsley Fernandes said.

Last year another major development took place in the distribution industry with the entry of Jio FTTH. To reach last mile consumers easily, JIO announced majority stake in two large MSOs, Hathway Cable and Datacom and Den Networks.

“IMCL believes that such consolidation is good for the industry as it creates an environment for technology driven organisations who will now focus on better consumer experience leading to better pricing rather than pure volume growth in a frittered industry,” the release read.