A Coalition of Nigeria Consumers has expressed concerns over recent announcement by Multichoice Nigeria Limited; providers of Digital Satellite Television services on (DStv and GOtv) platforms, to increase its subscription price from June 1.
This was contained in a petition sent to the Director General of the Federal Competition and Consumer Protection Commission (FCCPC) through the F. S Onifade & Associates titled “powers of the commission to regulate price: abuse of power of dominace in markets and impending price hike by multichoice/dstv in Nigeria.”
Managing Partner at the F.S Onifade & Associates Festus Onifade, Esq. said the petition is anchored on “Power of Abuse of Dominace” as provided for in new law FCCPC Act 2018 signed into law by President Mohammadu Buhari (PMB) in February, 2019 which is prohibited under Section 72 of the FCCP Act.
The Act empowers the FCCC to fix and regulate prices of goods and services where such infractions have been brought to the notice of the Commission.
According to the Petition the increament plans by the company citing the increase in VAT rate as the reason, makes it the third time in a period of five years inspite of court injunctions against similar increment which was not obeyed.
It therefore called on the Commission to under law and new identity save the Nigeria consumer from another oppressive private monopoly, noting that out of about 14.56 million Subscribers on across Africa, Nigeria alone has 40% of this numbers as at 2019 making her the largest and leading satellite TV service provider in Nigeria.
“You will recall that Mutilchoice Nigeria Limited had recently announced that it will be increasing its rates for DStv and GOtv Subscribers from 1st June, 2020, citing the increase in VAT rate as the reason for this imminent price increment.
“It must be pointed out that the company would by this announcement be increasing it rate for the third time in the last five years. First in 2015, another in 2018 and now 2020. This is inspite of repeated outcries by Nigerians and court injunctions restraining Multichioce from increasing their rate on those previous occasions which were blatantly disobeyed,” the petition stated.
“Sir, as you have notice that national lockdown and government ‘Sit at home’ order has directly increase the patronage for the product and services of the providers DStv and GOtv without commensurate increase in contents particularly in view of the suspension of world major sporting live events and TV drama series ect; and yet Consumers are left with no other option not only to pay but with imminent increase.
“Our Client also noted with grave concerns that apart from the pattern of (content recycling) of repetitive films and programs, many local TV Channels which ought to be free are paid for by Nigeria Consumers as opposed to the practice of enjoying free local Tv Channels in other part of the world.
“Worst still is that with a monthly premium subscription rate of about N16, 000 Our Client and Nigeria Consumers are greatly surcharge. This is because with an average of 720 hours per month, an average view is about 6 hours per day. If usage is converted to hourly basis this same amount will give a consumer four months value. Hence, we advocate ‘Pay as you use.’
“Sadly, Nigeria with over 40% of its Subscribers in Africa; Nigerians and Our Client in particular continue to groan under the repressive incessant price hike because of the dominant position Multichioce Nigeria Limited occupies where it determines market prices unilaterally without recourse to it closest competitor (StarTimes) or consideration for the welfare of its Customers,” the petition added.
The petition further implored the Commission to be persuaded by the provision of Section 88(3) of FCCP ACT 2018 to prevail on satellite cable TV to suspend its planned price increment, saying this would amount to “anti-competitive act, arbitrariness and against the welfare of the Consumers.
“The Commission should invoke its power under this Act to regulate the price as this would be in the overall public interest thereby keeping the service within affordable means,” it stressed.
