The Subhash Chandra-led Essel Group, the first Headend-in-the-Sky (HITS) operator in the country has suspended its operations.
Owing to high entry fees, absence of a favourable tariff plan and restrictions on the use of DTH infrastructure, the company may soon surrender its bandwidth and transponder capacity to the government.
HITS is a new satellite-based cable distribution platform approved recently by the Cabinet to encourage digitalisation of 80 million analogue cable homes using the satellite.Several large cable firms, betting big on HITS, are hoping to attract foreign investors.
Exit of Essel Group from HITS may come as a big blow to I&B ministry, which has promoted HITS as a solution and a possible alternate to the controversial Conditional Access System for bringing in transparency and digitalisation in the Rs 30,000-crore cable industry.