AIADMK likely to nationalise cable TV business

CHENNAI: The AIADMK, which won a massive victory in last month’s elections in Tamil Nadu, is expected to nationalise cable TV distribution business in the state. The Maran brothers, who run SUN TV network and belong to the rival DMK camp, operate a large cable TV distribution business in the state called Sumangali Cable Vision. “Cable television will be taken over by government," the AIADMK election manifesto, released in March, said. “No monopoly. Government cable TV connection will be provided at subsidised rates to every home in the state. Those in the business of providing last mile connectivity of television cables will not lose their jobs.

Their interests will be protected,” the manifesto added. On Friday, just hours after her victory, Jayalalithaa said the government will move quickly to implement all promises in the manifesto. “We have released a comprehensive election manifesto in which we have made numerous promises to the people.

Our main priority is to fulfill all the promises that we have made in our election manifesto within a time frame of one-and-a-half years,” she said. The manifesto also promises to provide cable TV connections at subsidised rates to every home in the state. SUN TV dominates the cable distribution business in Tamil Nadu through Sumangali, which has an 80% share. During her previous reign as chief minister from 2001-2006, she had wanted the state to take over cable TV distribution. Arasu Cable, formed by the government, will run the business in the state. But the plan could not go through and was forgotten after the DMK captured power in 2006.

It was briefly revived when chief minister M Karunanidhi’s family had a spat with the Maran brothers in 2008/09 but was buried again after they patched up their differences. Since Sumangali is run as a separate entity, its takeover will not affect the business of Sun, the listed entity. A senior official in Sun told ET that their cable business will not be affected in a major way. “Cable is a non entity in our business. Even without any government’s support, we are the sole leader in Karnataka and Andhra Pradesh. So whichever government comes to power we would not lose anything,“ he added. “Our content is very strong and no one can break that monopoly. Today no house will take a cable package without Sun TV that is the impact that we have created.”