The ministry is working towards a switchover of the cable services from analogue to digital by 2014-end across the country.
The deadline for phase II of the digitisation in 38 cities ended on April 1 and the disqualified MSOs were not providing services under the new digital regime.
An official said that setting up a digital head-end was one of the conditions for MSOs to comply and the MSOs whose licenses were cancelled did not met these conditions.