Sun's cable arm inks pact with TVS Electronics

Sun Network's cable arm Sumangali Cable Vision (SCV) has entered into an outsourcing agreement with TVS Electronics (TVSE) to manufacture, stock, sell and support their set-top-box (STB) business.

Sources close to the development said that the deal was struck a month back, following which TVSE has taken up all STB related activities.

This move, it seems, would allow SCV to escape the burden of procuring, stocking, selling and offering support for its STBs. When contacted, an SCV spokesperson refused to comment on the development. Service of STBs purchased before March 31, 2005, will be done by Novatron Broadband.

Sales of STBs have leapfrogged by more than threefold from 2,000 units to between 6,000 and 7,000 per month after prices were slashed by a little more than Rs 1,000 a month back.

SCV slashed prices from around Rs 5,000 (including smart card charges of Rs 400) to Rs 3,932 (including smart card charges).

TVSE's broadband solutions group will be in charge of the STB related business. At present, TVSE is selling the Taiwan-manufactured STBs, Coship that SCV has been marketing so far. Starting July, however, it will start marketing a SCV-TVSE co-branded STB that will be manufactured in-house by TVSE.

TVSE has tied up with a Korean company, Handan, for the technology and invested Rs 8 crore to create a 2,000-per day capacity. TVSE had bagged its first STB order of Rs 20 crore for around 75,000 STBs in August last year. Besides domestic sales, it has its sights set on exports as well.