Cable operators plan to offer internet, intercom facilities to start with and also package channels apart from offering satellite channels. As these require heavy investments, especially in fibre optic cables, the operators have decided to come together. This consolidation has also helped in corporatising this otherwise unorganised industry.

In early 1990s, there were close to 1,000 cable TV operators in the city. Over a period of time small players either closed shop or merged resulting in their number declining by half. With the advent of more and more channels going pay, the investment required per operator for buying decoders and other equipment has shot up.

Competition from big corporate operators has made itimperative that they offer almost all the channels. Left with little option, they have decided to reorganise themselves by centralising control rooms. In this arrangement, individual operators will have control over his area and at the same time share the control room, which will be equipped with the latest equipment. With this, they have been able to considerably bring down capital costs. Each operator contributes a certain amount per connection towards the operating cost of the control room. As a result, the number of control rooms in Chennai has declined drastically, from over 500 to only 30.

The investment required in switching over to optic fibre cables, a pre-requisite for having the adequate bandwith for offering internet and intercom facilities, is driving operators to consolidate further. Optic fibre cables cost Rs 1 lakh for every 1,000 metre as against Rs 40,000 for an ordinary cable. On top of it, investment has to made for offering internet facilities through cable. Some players are in talkswith internet service providers such as Dishnet, Satyam Infoway. They are also toying with the idea of offering intercom facilities among the subscribers by putting up a mother EPABX system in the control room.

Packaging of channels is also another area which would become inevitable in the next few years. In developed countries, the subscriber can choose the channels he wants and is charged on the basis of it. This is not possible here as investments to the tune of Rs 30-40 lakh have to made on addressible systems.

Some corporate operators are trying to rope in other operators by offering them shares in their companies. Individual operators will continue to be responsible for their respective areas. Once this is completed, there will be only four or five large cable operators in Chennai. They will be in a position to leverage on their scale of operation and corporate status to raise necessary resources for keeping abreast with technology.