MCOF ties up with Microscan to drive broadband biz for LCOs

The Maharashtra Cable Operators Foundation (MCOF) has signed a memorandum of understanding (MoU) with Microscan Computers, a Mumbai-based internet service provider (ISP), to launch broadband services in Maharashtra. 

The two entities will float a special purpose vehicle (SPV) by the name of SCOPE to launch the broadband services. Both MCOF and Microscan will have stake in SCOPE. However, the exact shareholding is still being worked out. 

The broadband service will be launched under the brand name BOLT (Broadband over Local Trunk) that was unveiled by MCOF on 15 August this year. 

“We have entered into a strategic alliance with MCOF which has around 1500 members. A special purpose vehicle has been floated to launch the broadband services,” said Microscan Computers MD Sandeep Donde. 

Microscan, which has ISP licence for Maharashtra and Goa, already offers broadband services in Mumbai and Pune. It has 12,000 subscribers in these two cities and through MCOF it is hoping to increase its subscriber base to more than one lakh. 

The company will utilise the extensive fibre optic network of LCOs to provide broadband services. “We also have an optic fibre backbone of 450 km in Mumbai and Pune. We will provide broadband services to subscribers using the infrastructure of LCOs through our underground optic fibre backbone,” Donde added. 

Donde revealed that Microscan has an internet headend in Andheri through which it can provide broadband services across Maharashtra. It also provides its fibre infrastructure to telcos. 

According to Donde, MCOF will deal with Microscan on behalf of LCOs attached to it. The LCOs, he said, will get a share of revenues earned through the subsidiary. 

“The margins for cable operators from broadband are around 12-15 per cent which is not adequate. Therefore, we will share 25-30 per cent of revenue with the LCOs which will be an additional revenue stream for them, particularly at a time when the revenue from cable TV service is expected to get squeezed,” Donde averred. 

Donde is expecting to earn ARPU of Rs. 700-800 from this initiative. The broadband industry ARPU currently stands at Rs. 300. 

While Microscan provides broadband services anywhere from 2 mbps to 50 mbps, it will look at the requirements of each LCO and will provide broadband services accordingly. “We will study the costumer pattern before deciding which service to offer,” he stated. 

The broadband subscriber base in India is abysmally low at 14.91 million.

Source: http://cablequest.org/news/cable-news/item/3854-mcof-ties-up-with-microscan-to-drive-broadband-biz-for-lcos.htmlSource: http://cablequest.org/news/cable-news/item/3854-mcof-ties-up-with-microscan-to-drive-broadband-biz-for-lcos.html