Partnership model that works: Empowering LCOs for the long run

If you trace the wires that run through India’s neighborhoods, chances are they lead back to a local cable operator (LCO). These operators, often small businesses that have setup shop within their communities, have been the face of entertainment in India for decades. However, times have changed. 

Whilst cable TV is facing strong headwinds, given the fact that streaming apps and free satellite services are pushing traditional entertainment to the sidelines, the internet has now taken center stage.

So, what does this mean for your local cable operator? To ensure they stay relevant in the evolving digital era, LCOs are shifting focus to keep up with trends and increasing demands. 

Down to the wire
At the end of 2024, India was estimated to have about 41 million wired broadband users. That’s amounts to 4.4% of the total broadband user base. Most still use mobile data for content consumption. However, the demand for high-speed, stable internet at home is fast growing, and wired connections are best suited for that.

Today, there are more than 81,000 LCOs operating across India and big players have begun to see the immense value and growth potential in teaming up with them. The fact is, these operators don’t just bring the infrastructure; they bring long-standing relationships, often forged over decades. 

They know their customers, their neighborhoods, and their needs. And big players can tap into these networks. These alliances are what helps penetrate underserved areas faster. But more importantly, it provides LCOs access to better tools and stronger service models.

Upgrade to thrive
Behind every LCO is a team. And, that team has felt the impact of change. The number of workers in cable TV has dropped sharply, estimated through recent studies, from over 120,000 in 2018 to around 82,000 in 2024. That’s a 31% decline, often riding on the fact that fewer TV subscribers have rendered many traditional offerings redundant.

In order for LCOs to survive, and thrive, they need to embrace the change and adapt to the latest tech. Those who’ve adapted are now offering a wider portfolio of products, better service and expanding their customer base. Others are still playing catch-up. This is where partnership models can prove to be beneficial. 

Many LCOs see the benefits of partnering with a bigger player. At its core, a partnership like this works in the long run because both sides bring something useful. The larger Internet Service Provider or ISP partner provides technical support, bandwidth, and billing systems whilst the LCO delivers the last-mile access, the manpower, and significantly, the local trust.

However, either for legacy reasons or lack of access to tech, a large number of these operators still use manual processes. This can hamper real growth and an LCO’s ability to scale up his operations. Which is exactly where a good partnership can provide access to digital systems to help them focus on growing their business, and not on the day-to-day operations. 

More importantly, established players can help provide brand recognition and build trust. Customers feel more confident when they see a familiar brand on their bill, and they can trust that the service will run smoothly. Bigger players can also provide vital training, keeping LCOs abreast with regulation shifts, product changes, and the latest technology. This can go a long way when they’re troubleshooting or explaining new services to customers.

If that’s not all, it’s important to note that fiber is quickly replacing older copper-based lines. According to industry data, fiber broadband connections in India has grown by over 27% year-on-year. Helping LCOs switch to fiber keeps their services competitive. It also ensures they don’t lose ground to newer providers.

Offering add-on services is another way to stave off competition. Whether it’s bundled broadband and OTT packages or even IPTV, home security systems, or commercial broadband plans, more options mean more revenue streams and better chances of retaining customers.

Future is local
Broadband expansion in India won’t be driven by big cities alone. Smaller towns and rural belts are where the real challenge lies and as such, the huge opportunity. But, the fact remains, LCOs have already done the groundwork in these underserved regions. They know the roads. They know the neighborhoods. They know the people. With the right support, they can be the face of India’s next digital leap.

The message is simple: partnerships work when they’re built on fairness, shared purpose, and mutual benefit. Local cable operators don’t need rescuing. They need respect, tools, and a seat at the table.

-- Satyaprakash Singh, COO, Strategic Alliance Partnership, ONEOTT iNTERTAINMENT Ltd.