GTPL Hathway will only expand its broadband services wherever it has a presence in cable with the strategy aimed at providing both services on the same infrastructure which will benefit it on the CAPEX side, the company said last month in the Q2 FY 21 conference call.
GTPL will keep the LCO model through which GTPL is getting last mile and line infrastructure support through LCO with the LCO continue being a key partner in the business.
GTPL’s Rajan Gupta added, “LCOs have played a very critical role in ensuring the last mile infrastructure, in ensuring whatever relationship they have with the customers. Using that relationship, GTPL specifically have increased our broadband penetration. Because of our very high market share in geographies, GTPL enjoys excellent trade relationships and over the years they have helped increase LCOs revenue, so they are also very loyal to them.”
GTPL further stated that whenever it entered into a new market in broadband it didn’t share any revenue with the LCO right now with some places having LCOs getting 5-10% tariffs and commissions. The same is a one-time commission at the sales point or recurring if you are a retention part.
Anirudhsinh Jadeja further added that GTPL had not seen anything being implemented on the ground w.r.t Airtel’s tie-up with local cable operators to enter into the broadband market.
GTPL’s Anirudhsinh Jadeja said, “I think about 4 years ago, they had come up with this formula. Tata’s bought metro Ethernet with LCO tie-up. Airtel also came up with the LCO formula in 2016-2017, but yes, we do not find any kind of rollouts in the market for now. Airtel has certainly announced their clear plans to the market. Many other telcos and ISPs including Tata and Airtel have come up with this formula but we have not seen anything being implemented on the ground.”
The company has also stated that it was a privilege to have Reliance Jio as its partner. “There are a lot of synergies coming especially on the content side, infrastructure, knowledge sharing, etc,” Jadeja added.