Hathway Broadband business saw highest quarterly net addition and continues to show promise despite high competitive intensity. Cable monetization is likely to improve on the back of vacated court cases and rollout of Hathway Connect. This is despite the launch of Reliance Jio 4G LTE Mobile Broadband.
Hathway on a consolidated basis added 100k net subs in F2Q17 (vs. 93k additions in Q1), of which 50k were on DOCSIS 3.0/GPON. Total broadband subs now stand at 820k, of which 360k are on DOCSIS 3.0/GPON. Standalone broadband ARPU increased to Rs740 in
2Q (+10% YoY, 2% QoQ). Consol ARPU was, however, lower at Rs643 due to lower paying sub additions by GTPL.
Management highlighted that GTPL is still on the old Docsis 2.0 technology, and its ARPUs will eventually increase once its infrastructure is upgraded to Docsis 3.0/GPON technology. We expect this strong momentum to continue and expect that broadband revenues will
increase at a 35% CAGR in FY17-19.
