Hathway Cable & Datacom Ltd Management Discussions.

GLOBAL ECONOMY OVERVIEW:

Economy in many countries rebounded in 2021 after a sharp decline in 2020. Advanced economies and many middle-income countries reached substantial vaccination rates. International trade picked up, and high commodity prices are benefiting many developing countries. Global growth is expected to moderate from 6.1 in 2021 to 3.6% in 2022 and 2023.

Source: https://www.imf.org/en/Publications/WEO/Issues/2022/04/19/ world-economic-outlook-april-2022

Although, rising energy prices and supply interruptions have resulted in higher and more widespread inflation than expected. Elevated inflation is projected to last longer than prediction, although assuming inflation expectations remain well-anchored, inflation should steadily decline in 2022 as supply-demand imbalances fade and major economies respond with monetary policy.

The emergence of new COVID-19 variants could prolong the pandemic and induce renewed economic disruptions. Moreover, supply chain disruptions, energy price volatility, and localized wage pressures mean uncertainty around inflation. As advanced economies lift policy rates, risks to financial stability in emerging market capital flows, currencies and fiscal positions may arise.

Source: are yet https://www.imf.org/external/error.htm?URL=https://www.imf. org/en/Publications/WEO/Issues/2022/01/25/world-economic-outlook-updatejanuary2022#:~:text=Global%20growth%20is%20 expected%20to,in%20the%20two%20largest%20economies

INDIAN ECONOMY OVERVIEW:

India has emerged as the worlds fastest-growing major economy, and it is predicted to be one of the top economic powers in the next decade, owing to its robust democracy and strong partnerships. According to Advance estimates, the Indian economy would expand by 9.2 percent in 2021-22 after declining in 2020-21. This indicates that overall economic activity has surpassed pre-pandemic levels.

With economic momentum resuming, and the long-term advantages of supply-side reforms in the works, the Indian economy is poised to grow at considerable pace. According to IMFs World Economic Outlook (October 2021 edition), Indias nominal GDP, measured in nominal USD market exchange rate is estimated at USD 3,515 Bn in 2023 (FY 2023-24), accounting for 3.3% of global GDP and making it the sixth largest economy in the world When measured in purchasing power parity (PPP) terms, India is estimated to be the third largest economy at PPP USD 12,387 Bn in 2023.

FY 2022-23 is expected to be the first normal year after the onslaught of COVID-19 which virtually eliminated meaningful increase in economic output during the two-year period up to FY21. Indias per capita nominal GDP is estimated to grow by 16% in FY 2021-22 to INR 16,95,743 (USD 2,282.34) after suffering a contraction of 2.4% in FY21.

Source https://www.indiabudget.gov.in/economicsurvey/ doc/echapter.pdf

INDIAN M&E SECTOR OVERVIEW:

The M&E sector rebounded with a 16% growth in 2021 to reach

INR 1.6 trillion, just 11% short of its 2019 pre-pandemic numbers.

Except for cinema advertising, all segments of the M&E sector grew in 2021, though experiential segments – like events and get back to normal levels. Whats more, the films sector should reach and exceed its pre-pandemic levels in 2022 itself. Beginning in 2021-22, India is predicted to reclaim its status as a global growth leader.

While television remained the largest segment, digital media cemented its position as a strong 2nd largest segment followed by a resurgent print. M&E sector is expected to grow 17% in 2022 to reach INR 1.89 trillion (USD 25.2 Bn) and recover its 2019 levels, then grow at a CAGR of 11% to reach INR 2.32 trillion (USD 30.9 Bn) by 2024. Higher growth envisaged in Indias per capita income in nominal terms is expected to support consumption growth including that in the media and entertainment sector.

INDIAN M&E SECTOR GREW 16.4% IN 2021 TO REACH INR 1.61 TRILLION

2019 2020 2021 2022E 2024E CAGR 2021-24
Television 787 685 720 759 826 5%
Digital media 221 235 303 385 537 21%
Print 296 190 227 241 251 3%
Online gaming 65 79 101 120 153 15%
Filmed entertainment 191 72 93 150 212 32%
Animation and VFX 95 53 83 120 180 29%
Live events 83 27 32 49 74 32%
Out of Home media 39 16 20 26 38 25%
Music 15 15 19 21 28 15%
Radio 31 14 16 18 21 9%
Total 1,822 1,386 1,614 1,889 2,320 13%

The M&E sector is projected to grow 17% in 2022 to USD 25.2

Bn, recover to pre-pandemic levels in 2019, and then grow at an 11 percent CAGR to USD 30.9 Bn by 2024. The development of digital infrastructure is likewise accelerating. According to the statistics, India has 795 million internet connections, over 500 million smartphones, and 10 million linked TVs, in addition to 170 million active TV connections.

The Media Sector is evolving and is becoming more Consumer Centric with consumers having immense power it what they chose and businesses are adapting to such change by re-thinking their business models to be more viable in the current scenario.

Television:

Television advertising grew 25% in 2021, recovering from a

21.5% drop in 2020, just 2% short of 2019 levels. Ad recovery was volume-driven for most of the year, with an average of 3% rate growth. Subscription revenue continued to fall for the second year in a row; it experienced de-growth of 6.2% mainly due to a reduction of six million pay TV homes and a fall in consumer-end ARPUs.

Connected TV sets, however, increased to 10 million. Time spent on TV fell 8% from 2020 levels and was slightly lower than 2019 levels for Hindi speaking markets. While television households will continue to grow at 1% till 2025, we expect growth to be driven by connected TVs which could cross 40 million by 2025 and free television which could cross 50 million, thereby stressing the core pay television market

Subject to implementation of ad caps and regulatory restrictions on pricing, television revenues to grow to INR 826 Bn by 2024 and the LCO business model may shift more towards hybrid model to hybrid i.e. a linear TV wire + a broadband connection for providing efficient content services, broadband connectivity, smart home services and locality/ community services

The Number of television channels reduced marginally to 906. Pay channels increased by 21, while free-to-air (FTA) channels reduced by 26, which reflects a move by broadcasters to build stronger subscription revenue products through bouquets. 62% of channels were free-to-air as compared to 64% in 2020.

While, the number of distribution platforms remained stable. MSO registrations increased by 3% during 2021 to reach 1,745. As of 2021, the Indian market was served by four paid DTH providers and one free DTH provider which are Dish + VideoconD2H+, TataPlay, Airtel, Sun Direct and FreeDish.

Active paid subcriptions reduced by 6 million in 2020

2020 2021
Cable 72 67
DTH* 56 55
HITS 2 3
Free TV 40 43
Total 171 168

Television subscriptions (in million) : Industry discussions, billing reports, TRAI data, EY analysis.

*Net of temporarily suspended subscribers

Subscription income fell for the second year in a row, with a 6.2 percent decline owing to the loss of six million pay TV homes and a drop in consumer-end ARPUs there is an expectation of improvement as Connected TV continues to grow and increased to about 10 million sets due to its synergies growing incomes and increasing affordability of these CTVs. As the

Covid situation continues to improve the amount of time spent on Television has begun to normalize hence there has been 8% decline in time spent on consuming Media on TV.

Cable witnessed a 5 million household loss 7% decline compared to 2020. The decline in paid subscriptions is ascribed to rural subscribers churning out and migrating to free

TV platforms, as well as some urban subscribers shifting usage to linked TVs. In 2021, broadcasters earned revenues from an average of 125 million paid subscriptions, as compared to 131 million reported in 2020.

End-customer prices declined 1% on an average to reach INR 223 net of taxes as compared to INR 226 in 2020. The primary reason for the decrease would be DTH users modifying their packages and culling excess channels which they did not consume content from. Secondly According to industry talks, cable ARPUs did not fall considerably since most consumers opted packs created by MSOs and LCOs with minimum modification.

Future Outlook: Television

Television revenues are expected to grow to INR 826 Bn by 2024.

Television advertising to grow at a CAGR of 8% to reach INR

394 Bn by 2024, Major reasons would be returning advertiser confidence and that advertisers still believe that TV is the most effective way of Advertising and building brand awareness.

Secondly upward correction in regional ad rates a constant slew of fresh sporting events and content which still remains the ultimate content when it comes to television.

Free TV continues to grow showing that there is a strong affinity towards TV as a source of Media consumptions among viewers and even though there has been a change in viewing habits of Consumers they will like to consume TV content as well with other Digital content. From a CPM perspective TV reigns supreme compared to other sources of Media consumption.

Television will go mass, and premium

Electrification of rural areas will increase reach of TV households.

As work resumes post the COVID-19 pandemic, and people get back to the cities where they work, deactivated connections will come alive. Entry level television sets will increase the demand for second screens in middle class homes, some of which may extend to television. Relative pricing of television to broadband remains — currently — much in favor of television.

Although on the negative side, Continued movement of the pay TV base to free TV (at the lower end) and OTT platforms at the upper end (for the 2nd TV in the home) could have a dampening effect on the pay TV base. Regulatory aspects around pricing and bundling could continue to impact ARPUs as subscribers learn to rationalize their channels and packages.

Pay TV is expected to continue to grow as states like UP, Bihar,

Rajasthan and West Bengal get access to affordableand easily available electricity. Despite the decision of large broadcasters to remove their content from the platform in February 2022, more new consumers will enter the Free TV market as the number of Free Dish channels climbs to roughly 200 by

2022 (from 164 in 2021), offering advertisers with a low-cost advertising opportunity.

The growth of unidirectional TV will be far outpaced by the growth of connected TVs, which could reach over 40 million connected sets by 2025, owing to 46 Indian cities with populations of over a million each and a total population of 122 million that can be wired up more easily for broadband, as well as telcos partnering with LCOs to drive broadband services. This means that overall TV connections will keep growing at a healthy pace of over 5% per year to cross 71% of Indian households by 2025

The future will be hybrid

As wired broadband becomes more widely accepted as a service and reaches more Indian households, the hybrid set-top box will become increasingly important. Users will be able to access more premium OTT video – and catchup TV content — via their broadband connections while receiving their television content in real time linear mode via the television connection. This will be network efficient, as live content will be seen utilising television infrastructure, lowering the burden on broadband networks.

Packaging will become more important as linear + OTT packs become the norm; and this transformation will be spearheaded not only by telcos and DPOs, but also by ISPs, LCOs, and independent start-ups. Top-end households are expected to remain on the same path as the rest, with at least one TV and one broadband + OTT bundle for the big screen.

With the hybrid model, LCOs will transition to a 2x4 business model, which entails two parallel cables linking a household for TV and broadband, respectively, and will provide four main services to consumers. The services would include – Linear TV content, OTT content, Broadband Connectivity, Home services like security, smart home (heating/cooling/ lighting etc.) management, etc.

Indian Broadband Industry:

Internet Broadband penetration increased 5% to reach 834 million, of which 795 million had broadband access Only 24 million Indian households had a wired broadband connection.

Wired Broadband reach to 24 Mn has increase by 26% compare to the 18 Mn in Dec-19

Online consumption increased

Indians spent 4.7 hours a day on their phones in 2021, aggregating 700 billion hours of consumption (second highest in the world). Indians spent 52% more time streaming entertainment content in 2021 as compared to 2019

Time spent by Indians on entertainment apps grew 52% since the onset of the pandemic, Importance of regional audiences increased - in 2021, 47% of OTT originals and 69% of films released on streaming platforms were in regional languages and over 100 films released directly on streaming platforms without a prior theatrical release.

Only 71% of telecom subscriptions accessed the internet, up from 68% in December 2020 secondly 95% of those accessing the internet used broadband. Broadband subscribers climbed 6% between December 2020 and September 2021, while narrow band subscriptions declined 19%. And there is a huge untapped opportunity in terms of a rural market. In 2021, urban internet subscriptions, which currently account for 60% of all internet subscribers, increased by 3%, while rural internet subscriptions increased to 8%. About 45% of Indias population over 15 years of age had access to a smartphone by December 2020.

As the WFH requirement starts to normalize the broadband subscription growth rates was expected to normalize and has seen a growth of ~ 6.5% in 2021 compared to 2020 but there is still a huge untapped opportunity in the rural, broadband is a great growth outlet going forward and wired broadband stood at 24 Mn which roughly 3% of the base. There has been a ~19% decline in narrow band subscriptions while Rural continues its growth growing at 8%

Growth Drivers for M&E Industry:

Easing FDI Policy

To attract investment for adequate infrastructure development, the government has concentrated on liberalizing the FDI policy for both the telecom and media and entertainment sectors. FDI limits in the telecommunications industry were reduced in 2013, while those in the media and entertainment sector were reduced in 2015 and 2016.

FDI constraints in teleports, DTH, cable networks, mobile TV,

Head End in the Sky broadcasting service dark fiber, electronic mail and voice mail, and cable networks were totally repealed in June 2016, allowing 100 percent FDI via the automatic method. Furthermore, before 2019, there were no clear provisions in the FDI policy relating to digital media. However, in December 2019, FDI of up to 26 percent was approved through the government clearance method for news and information uploading/streaming.

Investments in National Infrastructure pipeline:

Telecom is one of the top five sectors (by estimated value of INR 351 Bn) accounting for about 5.9% of the total NMP target. The potential asset base considered are telecom tower assets under Bharat Sanchar Nigam Ltd (BSNL), Mahanagar

Telephone Nigam Ltd (MTNL) and Bharatnet optical fiber assets under the Bharat Broadband Network Limited (BBNL), and Bharat Sanchar Nigam Ltd (BSNL) Approximately 286k route-km of Bharatnet fiber assets are proposed to be bid out through PPP model by the Department of Telecommunications through nine packages comprising 16 states

Production-linked incentive schemes:

In November 2020, the Government of India announced the second edition of production-linked incentives (PLI) schemes across 10 key sectors. The PLI schemes were launched with the intention of scaling up domestic manufacturing facilities, accompanied by higher import substitution and employment generation. These schemes offer turnover linked incentives ranging from 4% to 6% of incremental sales for five years to approved investors (which include the telecom and electronic goods sectors), upon meeting the specified investment, capacity, and turnover criteria. n the Budget 2022 speech, the finance minister announced that a scheme for design-led manufacturing will be launched to build a strong ecosystem for 5G as part of the PLI scheme. Investors have shown confidence in the PLI scheme introduced by the Government of India. India has recently turned from being an importer to an exporter of mobile phones. This trend is likely to spill over to the other sectors.

Government initiatives in the telecom and media and entertainment space:

The government has taken an active interest in aiding the media and entertainment industries, particularly through different measures aimed at promoting digitisation, such as development of digital communication infrastructure. With the goal of providing rural residents with equal access to e-services, communication facilities, and digital resources as their urban counterparts, the government announced in the Union Budget 2022 the installation of optical fibre in all villages under the Bharatnet project via PPP mode in 2022-23. The project is scheduled to be finished in 2025. The government wants to organize 5G spectrum auctions in 2022-23 with the goal of bringing in next generation technology, which is likely to aid in the achievement of the "Digital India" agenda.

COMPANY OVERVIEW

Part of the Reliance Group business conglomerate, Hathway Cable and Datacom Limited (HCDL) is a dynamic

Organisation engaged in providing high-quality fixed line ISP and CATV services to millions of subscribers across length and breadth of India. Leading fixed line internet service provider in the country, HCDL provides uninterrupted and high-speed connectivity through its fast-growing ISP business along with OTT offering, having 5.7 Mn Home passes and

1.11 Mn subscribers base.

It is India first MSO to launch GPON FTTH service in India

The Company also provides CATV services through its wholly owned subsidiary, Hathway Digital Limited (HDL), which is one of Indias largest Multi System Operators (MSOs), with 8+ main head ends and a network of approximately 57,000 Kms of optical fiber and coaxial cable, providing cable services to 5.4

Mn viewers (including through its fellow subsidiaries & JVs) pan India and reach to 700+ towns and adjoining areas.

It also delivers both CATV and Broadband services in certain parts of the country through its associate company, GTPL Hathway Limited.

Broadband Business :

Broadband Customers (1.11 Mn wireline broadband subscribers as of March 31, 2022) increasingly prefer wireline broadband as it allows online media consumption and seamless accessibility of data to multiple devices while at home. Due to the increasing trend of COVID-led work from home "WFH", the broadband tier 2 and industry saw a significant

3 towns as many professionals shifted base to their home towns. Online education also became a key growth driver for broadband in smaller cities.

The Companys focus on FTTH-led technology edge and improving consumer experience through enhanced digitisation and automation helped in increasing the FTTH consumer base by more than 20%. Through enabling consumers to handle multiple digital engagements from office video calls to online school and OTT consumption needs, FTTH consumers enjoying unlimited data, national average consumption has increase to 234 GB/month/consumer data usage. This shows the level of engagement of consumers with the Company network. With high-speed unlimited plans, while Company focused to provide uninterrupted service , it also started giving consumers double band routers which allowed them to get consistent speed on multiple devices.

The average data usage per costumer per month reached 234 GB in March 2022 exit which showed customers preference for watching online media.

Company focused on re-engineering its customer front-end to make it technology-enabled, so as to drive operational efficiencies and strategic thrust on continuous innovation, which lies a strong ambition to empower customers.. The key innovation Initiatives taken during the year were as below :

First ISP Company to provide VoiceBOT, an Artificial

Intelligence (AI) and Machine Learning (ML) applications & tools, for handling interactive Voice Services

• Chatbot, enabling quick and hasslefree First Time Resolution (FTR) to customer queries through Web/ App/ WhatsApp interface

• Smart IVR system at out call centers, which further strengthened FTR

• DIY (Do It Yourself) videos to improve awareness and helping them in speedy resolution of their complaints.

During the year under review, the Broadband business revenue stood at Rs 621.94 crores and the subscribers stood at 1.11 Mn (Previous Years Broadband business revenue stood at Rs 615.6 crores and subscribers stood at 1.07 Mn).

Cable Television Business:

Hathway Digital Limited "Hathway Digital", a wholly owned subsidiary of the Company, provides Cable Television Services on Pan India basis. Implementation of New Tariff Order (NTO) in

March 2019, helped customers the freedom to watch channels of their choice with best-in-class technology.

To strengthen the systems and technical capabilities to ensure uninterrupted service to esteemed customers , several new initiatives were undertaken during the year:

• Next generation HEVC HD box and OTT hybrid box were launched during the year to give Cable Television Customers enhanced viewing experience

Introduced digital prepaid offering for transactional convenience of Customers

• Online renewal facility to empower customers by giving them the freedom to renew their packages at the click of a button through MyJio App, at their own convenient time and place

• Instant customer activation to enrich customer experience with no time lag

• Leveraging platforms like whatsapp for continuous customer engagement

• New digital eCAF process including IVR-based authentication in addition to OTP process

• Piloted initiative of providing OTT apps through already seeded new generation HD boxes ,designed to give OTT access to millions of our Cable Television customers without the need to buy an additional OTT device.

• Rolled out a new product/GTM strategy to make Hathway infrastructure-ready to seize the benefit of the more conducive prevailing market. We are in the process of rolling out new plans.

Efforts to create an extensive incremental infrastructure, with focus on southern and eastern states, enabling us to expand our market share. The Company connected more than 140 new locations with IP links and added 3,000 kms of fiber network.

• Piloted TV Plug ,a revolutionary new product to provide highly reliable last-mile Cable Television connectivity from a mobile tower network.

Financials Review:

Standalone Revenue stood at INR 672.75 crores compare to Previous year 749.86 Cr. Total Comprehensive Income stands at 47.07 Cr Previous year INR 111.38 Cr Consolidated Revenue stand at INR 1870.44 compare to Previous year Rs 1,874.22 and Total Comprehensive profit stand at 128.9 Cr. (P.Y. Rs 253.9 Cr)

INR in Crs FY 22 FY 21 Growth %
Standalone
Operating Revenue 621.9 615.6 1%
Operating EBITDA 195.4 200.5 -3%
EBITDA Margin 31% 33% -1%
Total other comprehensive income for the Year 47.1 111.4 -58%
Consolidated
Operating Revenue 1,793.0 1,731.8 4%
Operating EBITDA 393.5 475.1 -17%
EBITDA Margin 22% 27% -5%
Total other comprehensive income for the Year 128.9 253.9 -49%
Ratio Analysis
Sr. Particulars Year Ended Year Ended Variance Remarks
No. March 31, 2022 March 31, 2021
1 Current Ratio 2.33 3.13 -26% Movement from Cash & Cash Equivalents and Current Investments to Non-Current Investments
2 Debt-Equity Ratio 0.00 0.00 -
3 Debt Service Coverage Ratio NA 18.48 NA The Company is Debt-free through the current F.Y.
4 Inventory Turnover Ratio NA NA NA
5 Trade Receivables Turnover Ratio 61.89 99.36 -38% Trade Receivables Turnover Ratio decreased due to Increase in Average Trade Receivables
6 Operating Profit Margin 22% 27% -20%
7 Net Profit Ratio 0.07 0.15 -50% Reduction in Net Profit on account of increase Operations Cost & decrease in Interest Income
8 Return on Capital Employed (Excluding Working Capital Financing) 0.00 0.03 -100% Increase in Average Capital Employed & reduction in Profit After Tax

Company has 361 on roll employees in HCDL and 297 on roll employees in HDL as at March 31, 2022.

Disclosure of Internal Financial controls:

Hathways internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use, executing transactions with proper authorisation and ensuring compliance of corporate policies.

Hathway has a well-defined delegation of power with authority limits for approving revenue as well as expenditure. Hathway uses a state-of-the-art enterprise resource planning (ERP) system to record data for accounting and management information purposes and connects to different locations for efficient exchange of information. Entity Level Control framework document has been documented. The documentation of process maps and key controls has been completed during previous financial year for all material operating processes.

It has continued its efforts to align all its processes and controls with global best practices.

The Management Audit Team (MAT) had conducted a review and evaluated the design, adequacy and operating effectiveness of the Internal Financial Controls of the Company.

Management testing has been conducted on a sample basis for Revenue, Expenses & payables, Fixed Assets, Inventory, Compliance, Related Party, Borrowings, Consolidation, Contingent Liability, Loans and Advances, Cash management, Current investment, Forex exposure and hedging, Finalisation,

Retirement benefits and remedial action has been taken or agreed upon with a finite closure date where control weaknesses were identified.

Based on the above, the Management believes that adequate Internal Financial Controls exist in relation to its Financial Statements.

SWOT ANALYSIS
Strengths Challenges
Broadband: Broadband:
• First MSO to Launch GPON with 300 Mbps speed • To retain Lower GB usage customers as they can manage their usage from mobility at lower price
• Highly engaged customer base with Average data consumption 234 Gb per subscriber per month Strong support from JIO fibre back bone and NOC • Aggresive pricing plan from competition impeding ARPU Growth
First ISP Company to provide VoiceBOT, an Artificial Intelligence (AI) and Machine Learning (ML) applications & tools, for handling interactive Voice Services • Revese migration of subscribers to home towns
• Smart IVR system at call centers, which further strengthened First Time Response (FTR)
Cable: Cable:
5.4 million digital subscribers Offersits cable television base; services across 700+ towns, operating in pan India regions • Lower paying capacity of consumers and poor infrastructure in Phase 3 and 4 markets
• JIO branded next generation best in industry HD Set top box Revenue sharing with LCOs making it difficult to compete with DTH
• First MSO to integrate with TRAI Channel Selector App and Portal for convenience of subscribers. • Continued movement of the pay TV base to free TV (at the lower end) and OTT platforms at the upper end
Enhanced system and technical capabilities based on JIO fibre backend support to meet customer expectations for best in class TV viewing experience • Economic slow down during covid impacting renuewal of multiple TV subscription
• Encouraging LCOs to empower their customers with online renewal facility.
• Instant customer activation to enrich customer experience with no time lag
• Provision of Mobile Apps and Portals to our customers and LCOs
• Rolled out a new product/GTM strategy to make Hathway infrastructure-ready to seize the benefit of the more conducive prevailing market. We are in the process of rolling out new plans.
Opportunities Threats
Broadband: Broadband:
• Rapid growth of the Tier II cities, increasing trend for demand for high speed fixed broadband • Low end users may move to wireless service providers due to competitive pricing and improvement in wirelss technology
• Government initiatives for Smart City • Technology Changes can lead to need for network
• Increase in Media content through OTT platform main driver for online content consumption. upgradation resulting in increased capex
• Covid lead sampling of online education and other use cases of online working will help in continuous increase in demand for fixed line broadband
Cable: Cable:
• Launch of Value Add Services Free Dish offering stiff 3 and 4 Markets
• Geographical expansion • High end consumers / Nuclear families / Bachelors can move to TV viewing through OTT apps
• Increase ARPU through HD packs at right price
• Increase customer engagement through better regional content
• Launch of Hybrid Box
RISKS AND CONCERNS
Product / Technology Risk Competition
Consequence: The traditional cable customer preferences are very slowly changing and in long term some of them may move towards getting content in a non-linear manner. Inability to meet the customers demand might lead to loss in business. Also Rapid advancements in technology leading to obsolescence of existing assets Consequence: Broadband and Cable business verticals where Hathway is present, has low entry barriers and multiple players across geographies
Risk Mitigation Strategy: To take early lead over competition, Hathway has offered cutting edge products & solutions at value for money pricing to enhance customers delight Hathway is well poised to to grow in this new segment of the market
Risk Mitigation Strategy: Your company is well placed to serve the arising needs of the customers by offering OTT & broadband services Rsto existing cable customers The shift to MPEG-4/HEVC STBs in cable and provision of providing broadband through DOCSIS 3.1 /GPON network is testament to the fact that we are sensitive to the rapidly changing technology trends
Awareness Risk
Consequence: LCOs function as primary facilitators of our business expansion. Therefore, delay in updating/on boarding them on latest initiatives undertaken by the company would negate the first mover advantage. Risk Mitigation Strategy: Your company has launched Hathway Connect portal for LCOs by imparting real-time training to help them manage their customers.