DEN Networks Ltd is a low risk high returns investment idea for theIndian markets and one of the biggest beneficiaries of theDigitization policy. With the Government of India (GoI) determinedly implementing the digitization policy, we believe that the turning point for the struggling cable industry has been reached. The cable industry which was characterized by drastic “under reporting” of subscribers by the LCO (last mile operators) had led to substantial revenue losses not only to the broadcasters & MSO’s (multi system operators) but also the GoI (in the form of lost taxation). With Digitization gradually replacing the analog distribution system, the entire universe of subscribers will now be uniquely recognized leading to a multifold jump in the paying subscribers for MSOs. India’s largest MSO – DEN Networks Ltd is expected to benefit the most.
Incorporated in July 2007, Den Networks is promoted by Sameer Manchanda, a veteran in the television industry. It is one of the largest national cable television companies in India, distributing analog and digital cable television services as per the MPA Report 2009. The company has analog cable presence in 76 cities across India and digital services in 37 cities across India. Den Networks currently provides cable television services in the National Capital Region of Delhi and Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. The company has obtained an all-India Internet services provider (ISP) license and recently commenced a limited roll-out of broadband internet services in select areas, which it intends to expand in all of the other cities in which it operates.
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