Siti to encourage LCOs to adopt prepaid mode of payment

Multi system operator (MSO) Siti Networks is pushing for prepaid as the preferred mode of payment with local cable operator (LCO) partners. In FY18, the company had brought 1.26 million subscribers under the prepaid portfolio.

“We are moving steadily to adopt prepaid as the preferred mode of payment with our business associates. I am confident this will emerge as a major facilitator towards the realisation of our ambition to become a profitable entity,” Siti Networks chief business transformation officer Rajesh Sethi said in the company’s annual report.

He also stated that the MSO has moved proactively to strengthen operational engagement with business partners and joint ventures (JVs).

Sethi also noted that the improved ground connect was a major strategic driver of the growth in subscription collection levels. “We will continue to monitor collection efficiencies as a key metric going forward. It will also be our effort to further boost ARPUs and bring parity in this aspect across phases, now that digitisation is largely behind us,” he added.

Siti aims to become a technologically agile organisation with the adoption of artificial intelligence (AI) and machine learning into our workflows.

“Our efforts to become a customer first company rely heavily on data and technology. We will invest disproportionately to ensure innovation, utility, and convenience. We are automating various customer touch-points and building interfaces which are intuitive and scalable. We are working with technology and hardware partners to incorporate AI and machine learning into our workflows,” he elaborated.

Sethi also said that the company is experimenting with connected boxes to give shape to the digital future and harness the OTT wave.

“We intend to create incubators to develop disruptive systems that enable anytime discoverable content for the end consumer as we move to an era of symbiosis between television and digital viewing,” he stated.

Looking back at FY18, Sethi pointed out that the fiscal proved to be a turnaround year for Siti on the back of a robust operational and financial performance driven by the tenacious and disciplined execution of Siti employees.

“Our single-minded focus in making Siti a profitable entity has enabled us to significantly grow operating EBITDA and expand margins manifold,” he said.

Siti, Sethi said, will build further on cost synergies and pursue innovation with a focus on profitable growth.

Talking about the expansion in FY18, Sethi said that the company had strategically optimised its geographical footprint and infrastructure investments towards a more concentrated market positioning. On the content deals, he added that the renewal with key broadcasters at moderate rate increases allowed the company to provide continuity in our varied content portfolio.

Sethi believes that the content cost item will get further aligned with subscription revenue and customer choice with the implementation of the new TRAI Tariff Order from January 2019.

“This will lead to changes in the media delivery value chain, ensure monetisation gains flow through to the bottom line and provide to the end customers the right to choose bespoke content,” he averred.

Siti has identified high definition (HD) penetration as another area of growth. As part of its aggressive HD drive, Siti will push for HD STBs when the old STBs are due for replacement in DAS Phase 1 and 2.

“HD is an experiential offering, with which we are reaching out to our existing customers through door-to-door promotions. The response has been quite positive and we added 36,000 HD subscribers to take our HD base to 3.15 lakhs during the year,” he said.