New Delhi : Cable services provider Hathway Cable and Datacom today said it would transfer its broadband-based Internet service business to its subsidiary Hathway Broadband.
As part of restructuring the business, company’s board today gave its ‘in-principal’ approval to “demerge, transfer and vest” its entire broadband business to the subsidiary, Hathway said in a statement.
Hathway Broadband intends to take the lead in driving wireline broadband penetration in India. The company believes that its hybrid fibre coax infrastructure on DOCSIS 3.0 platforms is the most effective and sustainable technology in a price sensitive market like India.
However, the same would be subject to mandatory approval from its shareholders, creditors and regulatory bodies, it added.
Commenting on the development, Hathway Cable and Datacom Ltd MD & CEO Jagadish Kumar said: “The restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business.”
“The separation is a step towards increasing the broadband business’ customer focus and market competitiveness as well as in delivering a superior value proposition,” he added.