Ortel plans to transfer broadband biz to a wholly owned subsidiary
MUMBAI: Multi system operator (MSO) Ortel Communications plans to transfer its broadband business to a wholly owned subsidiary Ortel Broadband. The Board of Directors of Ortel at its meeting held on 26 December approved to incorporate a wholly owned subsidiary with name Ortel Broadband. The company intends to transfer its broadband business to this entity at a future date subject to final approval of the Board of Directors and after receiving other requisite approvals.
The Board has also formed an internal committee to examine this matter in detail and recommend to the Board for approval. The idea behind the move is to put a greater emphasis on the broadband business with a separate management team. Since Ortel Broadband is a wholly owned subsidiary, the value of the broadband business will also be captured in the parent company.
“Our Board has approved the formation of a wholly owned subsidiary where we intend to transfer the Broadband Business. The objective behind such Transfer is to have a special focus on Broadband Business with a dedicated management team to drive growth,” Ortel Communications president and CEO Bibhu Prasad Rath told TelevisionPost.com. “Recently, we had launched a wide range of broadband plans with varying options of pricing, speed and download limits which will attract all segments of customers.
Our Two-way Network with Last mile ownership puts us in a unique position to deliver superior broadband services. We continue to work in this direction,” he added. The move comes close on the heels of the company launching unlimited data plans starting at Rs 99 per month.
The Rs 99 plan has 500 MB data limit per day @ 2Mbps, although the customer can continue browsing even after reaching the daily limit, at post FUP speed. The New Unlimited FUP Broadband Plans also have options of 1 GB daily data limit at Rs 129/- per month and a multi-month package at Rs 349/- wherein subscribers can enjoy 1 GB data per day at 2 Mbps speed for 3 months. The ‘Below 100’ plan was launched to increase the penetration of internet-ready home passes which are already available in most of the markets where it operates.
Ortel had already withdrawn the plans below 1 Mbps in the month of April 2017. With the launch of new plans, it had withdrawn all the plans below 2 Mbps. It has introduced Unlimited FUP plans in the speed range of 5 Mbps, 10 Mbps, 20 Mbps, 50 Mbps and 100 Mbps with monthly data limits ranging from 40 GB to 1 Terabyte at very affordable price points.
For the quarter ended 30 September, Ortel’s broadband revenue had fallen 17.1% to Rs 5.1 crore as against Rs 6.1 crore in the trailing quarter.
Subscription fee was down 18% to Rs 4.7 crore.
Broadband bandwidth cost remained flat at Rs 2.5 crore.