Tata Sky Broadband can leverage existing customer base of Tata Sky: CRISIL

[OnlyTech]

Rating agency CRISIL Limited in April revised the outlook on the long term bank facilities of Tata Sky Broadband Private Limited (TSBB) to ‘Stable’ from ‘Negative’. It noted that the revision was underscored by the strategic importance...

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[Basil]

This thread is open for discussion.

 

[vishalrao]

How can TS broadband "leverage" existing user base of TS DTH??? They anyways have to deploy fiber to the area which is like a new and separate company so I don't see any leverage here.

CRISIL is wrong and we have another company with bad debts to banks in this country.

 

[Basil]

How can TS broadband "leverage" existing user base of TS DTH??? They anyways have to deploy fiber to the area which is like a new and separate company so I don't see any leverage here.

* Broadband business has interlinkages with the flagship DTH business of the parent

TSBB's broadband offering is interlinked to the DTH offering of the parent. TSBB can leverage the existing customer base of Tata Sky for its broadband offering. Furthermore, the broadband offering will help Tata Sky counter competition in the DTH and broadband segments. Both businesses have strong interlinkages, thereby increasing the criticality of TSBB to the parent.

They feel can get new and old customers to switch to TSBB. But then TSBB reach is very limited currently. Mainly in Mumbai, and select cities only. Airtel Xstream Fiber is far ahead in reach with also 500 cities marked for probable expansion. Airtel will have the advantage in bundling BB+DTH over TS incase if it at any time does it.

Rating Rationale

CRISIL is wrong and we have another company with bad debts to banks in this country.

Rs 98 crore loss in FY 19 and Rs 52 crore loss in FY 18 to be exact. FY 20 result should come later next month courtesy CRISIL.