According to cable operators, Star does not have to invest anything new to up its stake in Hathway. Star has already made a substantial investment in Hathway which would be adjusted now against dilution of Hathway shares, says a source. "The valuation was not done properly at the time Star and Hathway tied up in a 26:74 venture," according to a cable operator.

Since foreign companies cannot hold more than 49 per cent in a cable network under the present circumstances, this is the maximum stake that Star can have in Hathway.

In the context of the ongoing channel wars, it is very important for broadcasters to have control on the ground distribution system. At present, both Star and Zee have control on the ground distribution through alliances with cable networks. While Star has a tie-up with Hathway, Zee owns the Siti Cable Network. The Convergence Bill, which is yet to get the parliament's sanction, is expected to take up the issue of cross-media holdings such as these.