“People Have No Choice”: FG Speaks as MultiChoice Explains Increase in DStv, GOtv subscriptions
- The FCCPC said that MultiChoice has detailed the reason it implemented a recent hike in its DStv and GOtv services
- According to the FCCPC chairman, the increasing cost of energy and the use of generators, among others, were cited as reasons for the hike
- He said that the commission is reviewing the reasons given by MultiChoice and that it will consult regulatory agencies
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Federal Competition and Consumer Protection Commission (FCCPC) has revealed the rationale behind Multichoice's recent increase in cable services, DStv and GOtv.
Source: Getty Images
The FCCPC acting executive vice chairman, Adamu Abdullahi, revealed that Multichoice had sent a four-page letter outlining the rationale for the pricing increases for its cable services, DStv and GOtv.
He said,
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“We got a four-page letter from Multichoice telling us the reason that led to this price increase. What we need to do is to bring in NCC and maybe NBC and Multichoice, sit down and look at all these variables that they claim caused the rise in prices."
Abdullahi said in a recent interview with Channels TV on Sunday that the company's justifications for the price rise included energy expenses, using generators, and difficult access to dollars.
In the process, he announced that the agency would review the reasons given by Multichoice and consult regulatory agencies, including the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC).
He said:
“At a glance, we saw things like the cost of electricity, running generators, the cost of dollars for spare parts and so on. We’ll review these items individually and determine how they have affected their operations.
“By and large, that’s the claim of what they are doing because they are a dominant player in this market. People have no choice but to go to them for Cable television, so that’s why they are doing what they are doing."
Abdullahi claims that if the commission finds that the company is distorting the market in any way, including setting unreasonable prices, it won't think twice about taking legal action against it.
Canal+ moves to acquire MultiChoice's remaining shares
Legit.ng reported that Canal+ has announced its intention to acquire additional shares of Africa's largest pay-TV company, MultiChoice, by April 8 after securing South Africa's Takeover Regulatory Panel ruling.
The panel asked Canal+ to make a solid intention announcement because of its 35.01% shareholding in the pay-tv company, which has triggered a mandatory offer requirement.
Canal+ agreed to the decision, securing an exemption from timing requirements and getting an extension not exceeding 25 business days from the panel.
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Source: Legit.ng
