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GTPL Hathway Ltd
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Ladies and gentlemen, good day, and welcome to Q1 FY '24 Results Conference Call of GTPL Hathway hosted by Emkay Global Financial Services. We have with us today Mr. Anirudhsinh Jadeja, Promoter and Managing Director; Mr. Piyush Pankaj, Business Head, CATV and Chief Strategy Officer; and Mr. Anil Bothra, Chief Financial Officer.[Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Mr. Pulkit Chawla from Emkay Global Financial Service. Thank you, and over to you, Mr. Chawla.
Thank you, Nirav. Good evening, everyone, and welcome to the Q1 FY '24 GTPL Hathway earnings call. I'd like to take this opportunity to welcome the management.Without any further delay, I shall now hand over the call to the management for their opening remarks. Over to you, gentlemen. Thank you.
Thank you, Pulkit. Good evening, everyone. A warm welcome to everybody to earnings call of GTPL Hathway to discuss financial performance of quarter 1 FY 2024.Before we start with the quarterly highlights, I would like to invoke the memory of late Mr. Bharat B. Chovatia, the Independent Director of our company, who unfortunately passed away on 5th June. As chartered accountant, he served the company well as member of Audit Committee. All of us at GTPL will miss his presence and guidance.GTPL Hathway continues to be a largest MSO in the country and largest digital cable TV and broadband player in Gujarat. In this quarter, the company strengthened its footprint in existing market of Maharashtra and Karnataka by strategically acquiring 34.34% of Metro Cast, an independent MSO operating in this market. A further subscription of 15.76% of Metro Cast share will be completed by December 2023, taking the aggregate stake at 50.10%.I will now hand over the call to Mr. Piyush Pankaj, who will take you through the quarterly business and financial performance of the company.
Thank you, Mr. Jadeja. Good evening, everyone. The company has recorded its highest ever quarterly revenues. Our KPIs have also increased both on quarterly and yearly basis. Our active digital cable TV subscriber base as on 30th June 2023 stands at 9.05 million. On a Y-o-Y basis, the increase in active subscribers is 650,000.In the broadband business, we have added 115,000 new subscribers, an increase of 14% on a Y-o-Y basis. Homepass stands at 5.40 million as on 30th June 2023, of which 75% are available for FTTX conversion. Homepass grew by 550,000 on a Y-o-Y basis.The broadband ARPU for quarter 1 FY '24 stands at INR 460, an increase of INR 10 on Y-o-Y basis. The average data consumption per customer per month stands at 310 GB, a 19% increase Y-o-Y.On a consolidated level, excluding EPC contract, in quarter 1 FY '24, revenue grew by 21% Y-o-Y to INR 7,806 million. The digital cable TV subscription revenue is at INR 2,981 million, up by 9% Y-o-Y and 8% Q-o-Q. We saw double-digit yearly growth in our broadband segment, increasing by 13% Y-o-Y. The broadband revenue is at INR 1,292 million.The consolidated EBITDA is at INR 1,258 million with an EBITDA margin of 16.1%. PAT for quarter 1 FY '24 is at INR 360 million. The stand-alone revenue, excluding EPC for quarter 1 FY '24 is at INR 5,118 million, an increase of 25% Y-o-Y and 13% Q-o-Q. EBITDA stands at INR 697 million and PAT for quarter 1 FY '24 stands at INR 230 million.This is all from my side. Thank you, everyone. We can now begin with question-and-answer session.
[Operator Instructions] The first question is from the line of [ Gaurav ], an Individual Investor.
Sir, first of all, congratulations for the results. And sir, I have a question regarding results of annual year, financial year '23. And my first question is that [Foreign Language].
Last year expenses, as you simply said that we are going for the expansion because of that, if you see there is a increase in the expenses side, mainly in the admin and the infrastructure side, which we did. Apart from that, there is some onetime in the quarter 4, which we have already saved at around INR 15 crores to INR 16 crores, onetime expenses, which we have taken. Because of those expenses, we have seen that there is a gap between revenue and expenses in FY '23. I will say that if you can see our last investor script -- transcript, you will get to know the exact differences which we have discussed in our last call in April. So that's the case.Coming on second, [ Gaurav ] on the AGR cases, as you know that we have explained about this in AGR cases, there is no movement in AGR in both the cases. First is -- just to give you the explanation that the first is related to cable TV revenues before FY '16, the -- because the license of broadband were same in the GTPL Hathway and FY '16, that the subsidiary had been created broadband and the license had to conclude there and this license has been abolished. So DoT has put that demand after taking the -- our cable TV revenue also for the AGR as a miscellaneous revenue, which is, I think, already that case is going on. This is an industry problem. I will say the whole industry, they have issued the -- this demand and the whole industry is striking on that. And already lot of explanation has been given there related with the telecom, the PSUs and everything. So that's the first thing but no movement has happened on those cases in the last quarter.The second case is in the licenses, for that we -- for the broadband company, which is on the single usage of Internet companies. And there also, there is no movement. Still the case is going on into the courts. So we can't comment much on this. We are waiting and we are very positive. According to us, you can see that we are very positive that those cases -- those demands will be taken off. We have not received any demand in the second case. But yes, we have gone ahead ourselves and given the disclosure for the better communication to the investor and [ for the company ].
Sir, regarding the issue #1 also INR 10 crore case, and what is the ratio of the amount? Like INR 975 crores amount is there. What is the ratio like related to cable TV and related to Internet? Can we have some figure regarding ratio in this?
No, no, we don't have any figure on that. It's INR 975 crores, which their demand is given -- add-on demand which they have given. So that is the case.
[Operator Instructions] The next question is from the line of [ Saket Kapoor from Kapoor & Company ].
Sir, firstly, sir, if you could explain Slide #22, wherein you have given the revenue breakup for the -- for all the vertical subscription income CAT (sic) [ CATV ], broadband, placement, carriage, activation, other operating income and other income. If you could give us some color on the factors that drive these segments. And how are they likely to shape up for the current year?
So subscription income CATV is mainly the CATV incomes, which we are getting it from our subscriber financials. So that is the CATV revenue -- direct CATV revenue. Broadband ISP revenue is from the broadband subscribers, which we are getting it. Placement, carriage and marketing incentive is mainly we are getting it for -- from the broadcasters for the carriage and placement and marketing incentives, which we are getting it from the broadcaster side. Activation revenue, it's from the -- when we are activating the first time, we get the activation and installation income, so for the new subscribers. Those revenues are coming from there. Other operating income consists of your advertisement income, your EPC income, that is more of an O&M income and all. And other income is more or less like a onetime income, which is interest and others, which is coming there in the other income.Here, we are going to look at that subscription income broadband and placement and carriage income is the main revenue source for the company. And there, you will see that, always the growth will come on those 3 lines, which will drive the company's revenues.
Sir, when we look at this number on a Q-on-Q basis, would -- is it the growth in the subscriber base that is only -- that's the key reason for the 8% growth in the subscription and 18% growth for the placement and carriage? I just would like to understand the factors and how are -- what kind of growth numbers are we going to see on the sequential quarter going ahead?
See, I always explain in the call that whenever you are talking about placement and marketing incentive income, it should relate into the pay channel cost because both are coming from the broadcasters. One is income of ours and one is expense for us. So whenever you're going to analyze this, you do pay channel cost minus placement, carriage and marketing incentives and see the margin on that basis -- the gross margin on that basis. Means subscription income CATV plus placement, carriage, market incentive minus pay-channel cost, which is your gross margin. And that gross margin has to be maintained. So you have to look into that basis.Broadband, as you know, broadband is a totally different business and broadband ISP is going to have their own growth based on their volume and value on the broadband side. Same subscription income CATV is depending upon the volume and value, both. But this time, basically, the growth for subscription side in cable TV, especially for new tariff order implementation effective 1st of April, right? Because of that, this 8% to 9% subscription income [indiscernible], not for subscriber base. Subscriber base, more or less, here and there, [ 50,000 ]. Major growth is for the NTO 3 implementation there.
We implemented NTO 3 and the effect this quarter is of around 2 months for that. Still the full effect of NTO 3 implementation you will witness in quarter 2.
So just to sum up, sir, this subscription income on the cable TV front, there is a -- will be appearing again and that would be more substantiated as a full quarter -- for the next quarter itself. This impact will be on a full fledged full quarter basis. This is only subjected to 2 months for this quarter.
Yes, [Foreign Language]. But yes, quarter 2 will be completely full.
[Foreign Language]. That will give us the real picture. That is what...
That's right. [Foreign Language]. That is the net cost, we will say, which is to monitor and subscription income CATV to be monitored.
Sir, if we look at your -- the growth in the CATV business, which you have outlined, what kind of CapEx are we going to do in terms of the structural cables [indiscernible] I think so, that is the key component laying off when you are acquiring new geographies or even when you are penetrating into new areas? So what kind of CapEx in the structured cable segment or FTTH are we going ahead with for this year?
We have already given the guidance for the full year CapEx last time. It was like INR 450 crores, we are going to do the CapEx. And out of that, around INR 250 crores is in the broadband and INR 200 crores is going to be in the cable side. This quarter, we did around INR 99 crores of CapEx, on which INR 50 crores of CapEx is the broadband and INR 49 crores is of the CATV.
And for the CATV, the structured cables are only -- the FTTH and the structured cables are the same?
Yes, mainly for that.
And sir, how many vendors do we have for the same, from which we are sourcing these structured cables?
You are talking about vendors for CATV business or for the broadband?
Yes, yes, both, sir, both the areas. For CATV as well as broadband.
We have vendors for different equipment. For...
Different, different like Nokia, like Juniper, like -- in cable TV like Nagra, like Changhong, like [indiscernible], Verimatrix, different, different.
Sir, for the cable segment, domestically, where are we sourcing and for the OFC also?
It's like Sterlite -- you're talking about the fiber?
Yes, sir. Optic fiber cable as well as structured cables for the cable TV business.
Sterlite is the main. Sterlite is there, Polycab is there. Birla, Sterlite, Polycab, all are there.
[Operator Instructions] Next question is from the line of [ Ranjit Zaveri ], an Individual Investor.
Sir, I have a question on the new tariff order. Sir, how it will affect our top line as well as pay channel cost? And will we fully pass on the rising channel MRP to our customers?
See NTO 3, we have started implementing from April onwards. And we have seen that there is a increase at the customer level also, LCO level also. Around 15% increase had happened at the customer level and 7% to 8% has happened at the LCO level. That's the average which has happened. And so that we have seen, it has gone very smooth. We have got the experience of NTO 1 implementation, and we have put into that base. And there is no chaos, very smoothly all the implementation has happened. All the increase in the prices and all have been taken well by the customers and by the LCOs. So it's a smooth implementation which is good.
Okay, sir. And my second question is regarding the [ INR 1,400 crore ] CapEx. Will it primarily be infrastructure upgradation in both cable TV and ISP side? And how it will help us counter high customer attrition seen in the industry?
So in cable TV, primarily it's because of the set top box procurement. And the broadband is more on a FTTH for new -- what -- going forward, we are installing only FTTH customers. So majorly, it's like last mile equipment of that and fiber and [ back end ] like core upgradation [Technical Difficulty] for that.
[Operator Instructions] The next question is from the line of [ Rahul Shah ], Individual Investor.
As regards to improving subscriber base, how much of it going forward will be natural and how much of it be through acquisitions and consolidation of smaller MSOs and LCOs?
Yes. So as we said that on the strategic side, we are focusing on both. Yes, from -- you can see from quarter 3 FY '22, FY '23, we have started doing the acquisitions, and that is one of the focus which we have said earlier that consolidation of industry is required and for upgrading the customers also for the quality label upgradation and everything, and we are going ahead and doing that. Yes, we are keeping the target in such a way that 50% should come from the acquisition and 50% should come through the organic increase in our current markets. So that's the way we are working towards that. And already, that is getting reflected in our numbers. Last Y-o-Y, we have increased our sub base by [ 650,000 ]. And we are looking forward that, that trend will continue, and it will increase up to that, on a Y-o-Y basis, it should be [ 1 ] million somewhere.
Next question is from the line of [ Rammanohar Reddy ], Individual Investor.
Just, this is [ where the ] question, Metro Cast subscribers of 4.5 lakhs, those numbers are included in the 8.3 lakhs or still those numbers are not included?
No, those are not included because we have concluded our acquisitions on 30th June evening, and that's why we have not taken the profit and loss account also, consolidating that. That all will come in the quarter 2. And in the numbers also, that will come into the quarter 2 in the consolidation. So all the consolidation will start -- line-to-line consolidation will start from quarter 2 on the Metro Cast.
And I have another question that's -- during the last call that we discussed that operating income will be around INR 600 crores. So this quarter, I think company made around INR 126 crores. Still, are you on track to reach the INR 600 crores?
Come again, come again, your question, Rammanohar?
Operating income -- expected income will be around INR 600 crores as per the last time that -- whereas the company is expecting. So current quarter, we made around INR 125 crores. So still, do you think -- because income went up around 11%, but I think still operating income is somewhat lower this quarter. So still, are you going to make up that by next 3 quarters?
Yes, yes. As we see that the implementation of NTO 3 has happened and still the full effect of that has not come. The cost side, the full effect has already come. On the revenue side, still the full effect has to come. And some of the markets, we have implemented the NTO 3 very late, that is in June. For those market, the old implementation will come. So that way, I will say that, yes, we are on the path of what we have said, and we should achieve that.
And I think even operating administrative expenses also are not coming down actually. I think last quarter, Q3, I think they went up drastically -- Q3 of FY '23. Still every quarter, they are going up. Is there any other reason other than -- because you said that I think we are setting up new business and all those things, so those things are coming up. So is it possible to -- for those expenses to come down, other operating administrative and selling expenses?
Yes, that is going to come down. If you see this quarter, it is 4% high. And if you step up about from INR 168 crore to INR 174 crore, around INR 6 crore has gone up. But yes, we are putting those things there which I -- that cost should not increase, and it should be at this level somewhere so that we can increase the market.
[Operator Instructions] Next follow-up question is from the line of [ Saket Kapoor from Kapoor & Company ].
Yes, sir. Sir, if you could explain to us this Metro Cast transaction slightly more in retail, wherein you did mention about the first payment of INR 25 crores and then to subscribe to some -- in view of the transfer of set top box? So how does this all work? And I think so 34% is what it is as on June, and then it will move up to 50%. So if you could explain to us the entire transaction and how have you valued Metro Cast in terms of the subscriber base and the assets that we have acquired?
So I have already given that in the presentation that currently, Metro Cast has 4.5 lakhs subscribers, spanning in Karnataka and Maharashtra and Goa market. And they are mainly higher in the Karnataka market. We have acquired 34.34% at INR 25 crores. You can get the equity value [ straightly ] on that way. And we are supplying the boxes of around INR 23 crores to them for getting the 50.1%. So this is the purchase and that is the subscription, the INR 23 crores is the subscription. And through that, we are getting the 50.1% stake in Metro Cast, and Metro Cast will become a subsidiary of GTPL Hathway on that way. So that's just the whole sum-up of the transaction.
Sir, in terms of this transfer of set top box, can you explain the process? I didn't get that one, sir.
So the first INR 25 crore is the purchase from, let's say, a holder of Metro Cast, the rest INR 23 crores of equipment -- set top box we'll provide to Metro Cast, which will in the lieu of getting the -- around 15% to 16% equity in the company.
And sir, what is the current market share of Metro Cast in the geographies that we're operating? I think that Karnataka is the main market for them.
Yes. Karnataka is the main market where they have around 300-plus -- 300,000-plus subscriber base.
So what is their current market share?
450,000 subscriber base.
[Foreign Language].
The Karnataka market, if we talk about, there are around 5 million -- more than 5 million subscriber base. Out of that, 300,000 is with Metro Cast. But they are into the strategic area, and they are dominating on those areas. There's no competition on those areas. So that is like, some of the pockets of Karnataka, they are dominating.
And sir, when we look at your depreciation and amortization expense, there is a part of it that, that is actual cash burning in terms of the set top box that get, I think so -- the losses on account of they getting redundant. So what should be the amount that we should be consuming in, in terms of this INR 35 crores quarterly run rate that we have?
No, there is no set top box getting redundant. You can say the churn is happening on that way. Churn is happening. Again, we are adding it, we are distributing the boxes also for the ground. All those things are going on. And right now, as per the policy, which is the industry policy, [ the ATF ] is the depreciation, straight-line method of the set top box, which is going on. So whatever boxes which company has procured before 2015, that has already got depreciated fully. The rest is on the verge of depreciation. So which is like -- every year, you are getting 1 year back, so next year [indiscernible] going to be 2015, the boxes which were procured in 2015 are depreciated fully, plus whatever be the boxes which we are tracking, which has started happening, those boxes are already getting out of the [indiscernible]. So those are not a part of the depreciation and all, they are fully depreciated. So that's just the policy on which we are working. And I think that the whole industry, which is working on those policies. So that is the case.
Sir, you mentioned about the CapEx in both the segments. So that is the incremental CapEx or is it the maintenance CapEx? What portion is towards maintaining the current infrastructure and how much is about deepening of the network?
Yes, that's just I've given the figure earlier, that right now, it's 15% to 16% is our churn, based on that around INR 50 crores to INR 60 crores going into the maintenance CapEx right now of INR 200 crores, and which we are reducing with the time as we are retrieving more and more boxes from the ground. So yes, around INR 50 crores to INR 60 crores is going into the maintenance CapEx, you can say, where we are maintaining the customer base -- the same customer base. The rest is going into the acquiring the more and more customers. So that is there.
I was also looking for the number for the laying of cable. How much is about the -- is towards maintenance CapEx for cables and how much is towards the new geographies where we are not present and laying of new cables? Can we differentiate between the two?
Maintenance, if you talk about the maintenance of the cable, the cable cutting is happening and we are replacing it with -- that is coming into the straight way into the OpEx. When we are laying a new cable, new areas and all, that is coming into the CapEx. So that is, you can say, the whole CapEx part, so that is hardly around 5% to 7%, which is on the cable basis.
The operation -- the maintenance CapEx, 5% to 7%.
That's right, 5% to 7% is there.
And sir, we are always hearing this technological advancement that is happening in the space where we operate. So what is the thought process of the management going ahead? How could technology take over things the way today, OF -- optic-fiber to wireless and then to this satellite part being into play. So what should investors read into this? How are technological advancements a threat to the business model going ahead? And...
We believe on one thing that -- and that's what we are working on. But we believe that fixed wireline, whether it is cable side or whether it is broadband side, it's going to remain there. Till date, the most robust technology, which has been proven for the broadband is FTTH and that is the fiber one, that whole thing is going on the fiber, and that is the most robust thing. Satellite technology, your wireless technology on the broadband, which is through 5G and all, it's still that has to be tested fully, and that to be -- that has to be tested fully in the Indian environment. And Indian environment we have to see because everywhere, it's not the -- all over India, if we talk about, hardly 10% of India has [ high light wavelength ], 90% of India has -- don't have the [ high light wavelength ]. There you require more of the fiber to go into the home rather than going into the wireless and all because the spread out is very high. So we believe that fiber is going to remain there, and that's what we are working on.
Any technology, whether it is a 5G, whether it's an air fiber, anyway backbone has to be a fiber. It's a proven technology, it's -- backbone [Foreign Language].
The next question is from the line of Rikesh Parikh from Rockstud Capital.
I just wanted to understand this new [ NTRO ], which -- the full benefit by when we can expect and how can we see the impact from the ARPU for the full year if one has to look into it?
So basically, [Foreign Language]. Quarter 2 will be completely full realization for NTO 3 implementation.
[Foreign Language]. Can we look at it, INR 475, INR 480 kind from INR 460?
I think as I understand, [Foreign Language].
Okay. [Foreign Language].
We have to see the cable TV ARPU, which is around INR 122, INR 123. There, you have to see that.
Second, sir, relating to [Foreign Language]?
Can you repeat the question, please? Sorry?
[Foreign Language] March '22, it will be around INR 292 crores.
If you talk about receivables has gone up to INR 481 crores. March, it was at INR 292 crores. So it has grown by INR 189 crores, but that is mainly due to the broadcasters receivables, which is around INR 190 crores, which has to come in...
Both receivable and payable growth.
Yes, receivable and payable, both as we have implemented in NTO 3, the usual 3 months has gone up to around 5 months right now, on the receivable side and payable side. Payable side is more on the marketing -- receivable side is more of placement, carriage and marketing and payable side is the -- more on the pay channel cost. So both has gone up in this quarter. As you see, this is cyclical. Always, you will see that the trade receivables and trade payables, because of the broadcasters, increases in quarter 1 and quarter 2 and start declining from quarter 3 and quarter 4. By quarter 4, again, you achieve that 90 days credit, which is their [indiscernible].
And sir, last question, last quarter -- means last year, because of Deloitte, we had a return of some INR 19 odd crores -- INR 18 crores, INR 19 crores. So any recovery out of the [ 6, 7-odd ] we held?
No, that will come, but this quarter, no recovery has come from there.
Next question is from the line of [ Ketan Athale from Global Capital ].
I just wanted to know, effective tax rate going ahead.
So effective tax rate would be around 26.2% and that we will -- actually going forward in Q2, Q3, Q4, we will try to maintain.
Okay. And for FY '25 also, if you can.
The same rate, actually, we are targeting. Probably, we are going to -- if suppose we are going for [ RTU ] assets, to that extent, actually, it will vary. Otherwise, it will remain in the same range.
[Operator Instructions] The next follow-up question is from the line of [ Rammanohar Reddy ], an Individual Investor.
Any reason for delay in AGM this year?
No reason for that, but we wanted to do it earlier, but as you know that Mr. Chovatia, our honorable Director has demised and then the new director has to come into the Board and instate. So that's why we have delayed it a bit right now.
[Operator Instructions] The next follow-up question is from the line of [ Saket Kapoor from Kapoor & Company ].
Yes, sir. [Foreign Language], fiberization is the key and it has to go through the -- backbone is the fiber. So sir, going ahead, [Foreign Language], especially to increase the fiber count, just to compete with them in terms of providing the broadband services, what kind of other -- I mean, have we factored in this 5G rollout going ahead in terms of the CapEx we are going for the broadband? And how are we going to showcase our products when 5G broadband services comes into play? There will be a real comparison between the broadband services provided by us and the telcos in the 5G format?
Saket, you are right that there is a lot of analysis on this, on air fiber versus fiber versus satellite and everything. And [Technical Difficulty].
Sir, I can't hear you. Hello? Your line dropped.
We can have one to one chat on this, and I'll give you this. I think I have given you, the last call with you, some of the aspects, I will give you more. But how we are looking forward and how it is going to expand, what are the pros and cons with the technologies. Okay?
I'll get back to you through the IR team.
Sure, sure, sure, Saket. Look forward to it.
[Operator Instructions] The next follow-up question is from the line of [ Rammanohar Reddy ], an Individual Investor.
Sir, are we -- is company reaching out to existing cable customers because many customers might be having different broadband or other things. As far as I'm concerned, I'm not using cable TV for the last 5 years, even my family members and other things, because I think -- because the technology -- the persons who has Internet connection, who are -- who knows something, who can operate TV and other things, definitely, they won't prefer cable TV as such, because the cost is -- there is not much cost difference, right? Because basically, if you go for broadband, you will get Internet, while if you go for cable TV, just, okay, only this -- it's not on-demand and other things. So are you reaching to the existing -- because always you are saying that there is a 9 million customer, there is a potential to convert those customers to broadband -- your customers. But there is no guarantee. Those customers might be already having broadband connections. So how you are reaching the customers and then saying that why not from GTPL? Are people who are -- who maybe -- or you can educate or -- is there any effort from company side to resource customers?
Hi, Ram. Ram, see, the wired broadband, we call it a [ start-up-stry] as an industry, as you know that right now, there's 35 million homes have wired broadband out of 350 million, which is like a 10%, 11% -- 10% hardly for a country like India. If you compare it with the other countries, which has more than 50%, we talked about China, [ Eurozone ], more than [ 65% ], U.S. and other countries, which has already [ 72%, 75% ] on the fiber. So India still has a lot to go. Yes, you are right. But still, if you talk about Internet customers, it's like 672 million, India is showing right now. But those are more of mobile -- on the mobile side on the Internet, which is like a low Internet. As the country is going more and more on digital and everything is happening on the digital and then the requirement of higher bandwidth, higher speed is going to be there. And there, we are going to see that part which fiber broadband will bring it. And yes, I guess you can say it, like 3 years back, the fiber broadband that were 20 million now it has gone up to 35 million, and we are hopeful that in the next 5 years, it's going to close to 100 million, somewhere. And so that's -- we are looking forward into the -- this thing.You talk about our 9 million subscriber base in the cable side, if I talk about around 35% or 30%, 33% is in the Phase I and Phase 2 market, which is more of a capital market and metro market, 65% market is in the rural market, Phase 3 and Phase 4, where still the penetration of broadband is very low. And there, the opportunity comes for us to bring those -- all our customers into the real broadband, which is the [ fiber zone ]. So we are looking forward to that, and we are working towards that, that how we can bring those customers into the broadband because already we have those relationships...
Sorry. Just my concern is, okay, we may miss those existing customers to our competitors. So you are not taking any initiative urgently because those 9 million customers may not come to GTPL. Even if we get some 2 million, 3 million, that is well and good. So that is -- just I wanted to point out to the management so that you can take action.
That is the [ prayer, Ram ]. But the cable will remain the same. That's not a problem because the cable still we have close to around -- if you see the pay TV customers in cable and satellite homes put together, it's almost 120 million households versus wireline broadband is only 35 million homes.
[Operator Instructions] The next follow-up question is from the line of [ Saket Kapoor from Kapoor & Company ].
Anu ji, you mentioned about that the fiber story plays out in the rural more and in cities where there are less high-rise buildings. So what do you want to convey there? Do the high-rise buildings and the complex -- the [ fiberization ], the fiber to home does not reaches the home in the fiber format? What were you trying to explain us?
Saket, the fiber to broadband, fiber to home, everywhere we will be negotiating.
But the comparison you were making, sir, between the low-rise and the high-rise buildings. So what were you trying to explain?
No, low-rise, high-rise, it's more of like concentration of customers we are talking about. See, in India, if you go to the rural, the concentration of customer is not there, it's far, far, far. In the urban, we will say there's a concentration of customers. So from that way we are talking about on the concentration of customers.
The cost is also going to go down with more concentration of customers, when you build the infrastructure once and then the revenue starts building up every month. So the cost also goes down considerably in a complex or a high rise, the number of customers are more.
Yes, you are right. And we have to put a lot of efforts to put the quality on there. So that is there. So both are -- that's why I said, let's have a discussion one-to-one. A lot of aspects that we have to discuss on those things.
[Operator Instructions] As there are no further questions, I now hand the conference over to the management for closing comments.
Thank you. I would like to express my thanks to every participant to take their time out to attend the call. We will work hard to ensure the company will continue its journey of sustainable growth in the upcoming quarters as well. For any queries, please feel free to connect with Orient Capital, which is our Investor Relations advisor. Thank you once again. Good evening.
Thank you very much. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.