Turning Indian Broadband Into A Family Business

As part of its red herring prospectus, SUN TV has mentioned that it has plans to enter the mobile telephone and broadband space. Long before Dayanidhi Maran took over as the IT & Telecom Minister, SUN TV had grand plans to foray into cable broadband as it was already operating in the Cable TV distribution space through Sumangali Cable Vision (SCV).

Sun TV is open to entering the mobile telephone and broadband space. The company, in its offer document submitted to the Securities Exchange Board of India (SEBI), disclosed that, "as part of our growth strategy, we may broaden our media presence through other platforms, including broadband, mobile and DTH''.

I hope somebody raises an issue about the potential conflict of interest (Kalanidhi Maran runs SUN TV and his younger brother Dayanidhi Maran, by virtue of his ministerial post, has the right to interfere in BSNL decisions). Don’t be surprised if BSNL increases broadband prices or decides to provide below par service in order or make a SUN TV Broadband offer look more attractive. Further, SUN TV might also get access to sensitive information like cost structures, subscriber information through its networks in BSNL.

Update: SUN TV denies report on mobile service.