MUMBAI: Sameer Manchanda-promoted Den Networks will be investing Rs 3.5 billion in the first phase of digitisation as it estimates to seed 2.3 million digital set-top boxes (STBs) in the three metros of Delhi, Mumbai and Kolkata.

The multi-system operator (MSO) has already placed over 1.5 million STBs. "Our investment would be Rs 3.50 billion in the first phase. We are looking at 2-2.3 million STBs in these three metros," said Den Networks chief operating officer MG Azhar.

The debt component is around Rs 1.70 billion, Azhar added.

Den has also lined up Cisco funding. "There is no upfront funding and the payment will be over five years," said Azhar.

In Delhi, Den has seeded over 1 million STBs and in Mumbai 300,000. "In Kolkata, we have put 150,000 STBs and our early estimate was that we would require 300,000 boxes. Now we feel that there is enough market in the city and we would need 0.5 million boxes," said Azhar.