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Tariff increase: Court fines Multichoice N150m, orders free one-month subscription to Nigerians

Alice Babalola — Fri, 07 Jun 2024 14:37:43 +0000

The Competition and Consumer Protection Tribunal (CCPT) in Abuja has fined MultiChoice Nigeria Limited N150 million for contempt of its jurisdiction by disobeying its order.

The tribunal, led by Saratu Shafii, also mandated MultiChoice to provide Nigerians with a one-month free subscription to its DSTV and GOTV services.

The ruling followed an ex-parte motion filed by Festus Onifade on behalf of MultiChoice subscribers. The tribunal has scheduled July 3 to hear the substantive case against the company.

Previously, on April 29, the tribunal had issued an order restraining MultiChoice from increasing its tariffs from May 1. Onifade argued that the eight-day notice given by MultiChoice was inadequate, emphasizing that a minimum one-month notice should be provided to subscribers before any price hike.

Despite the interim order, MultiChoice proceeded with the tariff increase and challenged the tribunal’s jurisdiction. The tribunal’s decision to fine MultiChoice and order the free subscription was supported by panel members Thomas Okosun and Dr. Umar Duhu.

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NANS gives MultiChoice seven days to reverse price hike

Alice Babalola — Wed, 26 Apr 2023 14:35:23 +0000

The National Association of Nigerian Students, South-west Zone, has given MultiChoice Nigeria, a seven-day ultimatum to reverse its planned hike on DSTV and GOTV subscription rates.

Adejuwon Olatunji, Alao John, and Opeoluwa Awoyinfa, who serve as the student association’s coordinator, deputy coordinator, and public relations officer, respectively, announced this in a statement on Tuesday.

MultiChoice issued text messages to its subscribers announcing a 17 percent price increase for its DSTV and GOTV bundles. also specified that the higher rates would go into effect on May 1, 2023, and also provided an explanation for the rise, citing increased operating costs.

In opposition to the subscription increase, NANS claimed that the South African corporation was putting Nigerians through hardship and extorting them without taking into account their way of living.

It also noted that tariffs should be charged on a “pay as you view” basis.

The NANS statement remarked, “Today, we are aware that MultiChoice Digital Satellite has increased its tariffs without considering the standard of living of Nigerians. We have also waited for a long to see if this same company will dance to the music of Nigerians who have been clamouring for ‘pay-as-you-view’ tariff, but the reverse is the case.

“This is the time to call on National Broadcasting Commission to go back to the Commission’s act to regulate the ownership, activities and operations of Direct Broadcast Satellite Service Providers. DSTV is one of the leading direct-to-home service providers in Nigeria since its inception of operation from as far back as 1995, and has also made a lot of profit with over 25 million subscribers which is the largest market for its operations.

“We want the Federal Government to stampede their proposed plan in tariffs increment and also force them to implement the pay-as-you-view system. We are aware that DSTV operates a system of pay-as-you-go tariffs in other countries,” NANS declared.

It stated that Nigeria constitutes over 45 per cent of DSTV global market share, and therefore called on the President, Major General Muhammadu Buhari (retd.), and the Minister of Communication to “break the sporting right of MultiChoice” and provide an alternative service provider in the country, so that “Nigerians can stop being exploited on a daily basis.”

Giving the ultimatum, NANS stressed, “We hereby give seven days ultimatum to MultiChoice Digital Satellite Television to reverse the plan of increasing the tariffs and also yield to the call of Nigerians by implementing pay-as-you-view tariffs, or else, we shall be left with no other option but to lock up all offices of DSTV until our demands are met which is the mind of all Nigerians.”

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DStv/Gotv tariff hike: Tribunal dismisses case against MultiChoice

Alice Babalola — Wed, 07 Sep 2022 11:03:58 +0000

The Competition and Consumer Protection Commission, CCPC, tribunal sitting in Abuja, yesterday, dismissed a suit filed to challenge the recent price hike by MultiChoice Nigeria Limited, the operator of DStv and Gotv.

The three-member panel tribunal, headed by Mr Thomas Okosun, in its judgement, dismissed the suit filed by a legal practitioner, Mr. Festus Onifade, on behalf of himself and the coalition of Nigerian consumers, as lacking in merit.

Whereas MultiChoice was sued as the 1st respondent in the matter, the Federal Competition and Consumer Protection Commission, FCCPC, was cited as the 2nd respondent.

Onifade had approached the tribunal shortly after the company announced its plan to increase subscription tariffs on all its products, from April 1.

In an amended originating summons he filed on June 20, the lawyer, prayed the tribunal to issue an order, directing and mandating the cable service provider to adopt a pay-as-you-view model of billing for all its products and services in the country.

Meanwhile, though the tribunal, in its judgement, yesterday, held that it had the requisite jurisdiction to hear the suit, it, however, dismissed the matter for want of merit.

The tribunal held that the price increase was valid, adding that the claimants failed to establish that MultiChoice abused its dominant position in the market.

More so, the panel held that neither the FCCP, the tribunal itself nor any other body has the power to regulate price.

“Only the President has the powers to regulate or fix prices of goods and services under stipulated circumstances which do not apply in this instance”, it held.

More so, the tribunal held that the claimants failed to adduce any evidence or to establish how they suffered psychological trauma, hardship or how their rights were violated as a result of the price hike.

It held that the litigants were unable to show evidence of hardship suffered by the consumers of Multi-Choice’s services and products.

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Big Brother Naija is back, with N100m prize money

Alice Babalola — Tue, 05 Jul 2022 12:04:56 +0000

Africa’s most popular reality show, Big Brother Naija, will return for its seventh season this July with a double launch show on Saturday 23 and Sunday 24.

Both shows will air from 7p.m. on Africa Magic Showcase, Africa Magic Urban and Africa Magic Family channels and the 24-hour show on DStv channel 198 and GOtv channel 29.

BBNaija fans across Africa will also watch the show live via the African online streaming service, Showmax.

Headline sponsor for BBNaija Season 7 is Pocket by Piggyvest and associate sponsor is Flutterwave.

BBNaija is staying true to its reputation of having the biggest cash prize for any reality competition on the continent.

This season’s winner will take home a grand prize worth 100 million Naira that includes 50 million Naira cash and other exciting prizes.

For the seventh season, the show will witness a return of a few pre-COVID 19 elements including the fan-favourite ‘Ninjas’ and a live studio audience.

Fans can also expect a line-up of more engaging tasks, unpredictable twists and Big Brother’s wit.

In addition, 30 fans of the show will also win N1 million each in the Fave Lock-In promo exclusive to DStv and GOtv customers.

The show will also retain its voting style from last year. Voting will only be on the Big Brother Naija website, mobile site, and the MyDStv and MyGOtv apps for active customers.

The number of votes each subscriber will have will be determined by their subscription packages, with DStv Premium and GOtv SUPA subscribers receiving the most votes.

DStv customers, who would like to opt out of viewing the show can do so by sending “Smart card number [space] BBOUT” to 30333, while GOtv customers can do the same by sending “IUC Number [space] BBOUT” to 4688.

Additionally, customers can activate the parental control option on their DStv and GOtv decoders for viewers younger than 18 years.

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Tribunal stops Multi-Choice from increasing DStv, GOtv tariffs

Hafeestonova — Thu, 31 Mar 2022 14:49:45 +0000

A Competition and Consumer Protection Tribunal sitting in Abuja has restrained Multi-Choice Nigeria Limited from increasing its tariffs and cost of products and services scheduled to begin on April 1.

The three-member tribunal presided over by Thomas Okosun, gave the order following an ex-parte motion moved by Festus Onifade, a legal practitioner, on behalf of himself and the Coalition of Nigeria Consumers.

Other members of the tribunal include Sola Salako Ajulo and Ibrahim EL-Yakubu.

The News Agency of Nigeria reports that in the suit marked: CCPT/OP/1/2022, Multi-Choice Nigeria Limited and Federal Competition and Consumer Protection Commission are 1st and 2nd respondents respectively

The motion ex-parte filed by the applicants on March 29 was brought pursuant to Section 39 (1) & (2) of the FCCPC Act 2018; Order 26, Rule 5 (2), (3) & 26 Rule 6 (1) & (2) Federal High Court (Civil Procedure) Rules 2019 and Section 47(a), (b), (c),(d), of the Federal Competition and Consumer Protection Act 2018.

The applicants had prayed for “an order of interim injunction restraining the 1st defendant/respondent, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022, until the hearing and determination of the motion on notice already filed before this tribunal.An order of the Honourable Tribunal mandating the 1st defendant/respondent to maintain status quo pending the hearing and determination of the motion on notice.And for such further order or other orders as this Honourable Tribunal may deem fit to make in the circumstance. The 1st defendant/respondent is hereby restrained, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022 until the hearing and determination of the motion on notice already filed before this Honourable Tribunal.

“The 1st defendant/respondent is hereby mandated to maintain status quo pending the hearing and determination of the motion on notice,” the tribunal ruled.

The matter was adjourned until April 11 for the hearing and determination of the motion on notice.

“All parties in this suit are to appear before this Honourable Tribunal on the 11th day of April, 2022,” it ruled.

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Senate probes DStv, GOtv over subscription fees hike

Alice Babalola — Wed, 30 Mar 2022 16:30:20 +0000

The Senate has begun moves to probe the operations of Multi-Choice Nigeria, owners of DSTV and GOTV Satellite decoders over alleged increase in price of the monthly subscriptions of various bouquets on their platforms.

The probe is designed to ascertain the possible constraints that have made it difficult for the Pay-TV providers to introduce Pay-Per-View for subscribers in the Nigerian market, especially with the pricing activities of DStv (MultiChoice Nigeria) in Nigeria with a view to bringing them in line with international practice.

Consequently, the Senate yesterday constituted a seven-man ad-hoc committee to carry out a very comprehensive investigation into the tariff hike introduced by pay-tv service providers operating in the country.

The Upper Chamber has directed all pay-tv service providers to as a matter of urgency, review their bouquet prices downwards in tandem with the prevailing reality of the economic situation in Nigeria, just as it kicked against the increase in tariffs by Multi-Choice Nigeria.

The Senate also urged the Federal Ministry of Communications and Digital Economy, and the Nigerian Communications Commission to direct all pay-tv providers to introduce a pay-per-view model of subscription as against the month to month prepaid model presently in place.

The President of the Senate, Senator Ahmad Lawan, while announcing the composition of the ad-hoc committee, tasked it to carry out a comprehensive investigation into how other countries are billed by pay-tv service providers.

The Committee which has the Deputy Chief Whip, Senator Aliyu Sabi Abdullahi, APC, Niger North as Chairman, has Senators Sulaiman Abdu Kwari, APC, Kaduna North; Oluremi Tinubu, APC, Lagos Central; Yusuf A. Yusuf, APC, Taraba Central; Lekan Mustapha, APC, Ogun East; Chukwuka Utazi, PDP, Enugu North and Akon Eyakenyi, PDP, Akwa Ibom South as members.

The Committee was given one month to report back at the plenary.

Resolutions of the Senate were sequel to a motion titled, “Nigerians dumbfounded, outraged over Pay-Tv Tariff Hikes, demand for Pay-Per-View subscription model”, The motion was sponsored by Patrick Abba Moro, PDP, Benue South.

According to him, among the bitter complaints of Nigerian subscribers of pay-tv services is the poor network service experienced as a result of bad weather/ epileptic electricity supply, which sometimes makes a whole month subscription wasteful without the subscriber watching anything before the expiration.

Moro stressed that Nigerians are demanding that, rather than paying fixed rates for packages monthly, pay-tv service providers should introduce a subscription model which allows subscribers pay-per-view to enable them to match their TV consumption to subscription as it is the case with electricity metering and mobile telephony.

He explained that the pay-per-view that Nigerian subscribers are demanding, is a flexible model plan of subscription which allows subscribers of pay-tv to pay-per watch, to avoid Paying for services that they do not consume.

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FCCPC to engage MultiChoice on increase of DStv/GOtv subscription

Alice Babalola — Wed, 23 Mar 2022 17:33:21 +0000

The Federal Competition and Consumer Protection Commission (FCCPC) has said it is engaging pay television company, MultiChoice Nigeria, for clarity over the increase in subscription rates.

Recall that MultiChoice on Tuesday, announced the increase in DStv and GOtv subscription rates, blaming it on the rising cost of inflation and business operations.

Announcing DStv rates are: Premium (N21,000), Compact + (N14,250), Compact (N9,000), Confam (N5,300), Yanga (N2,950), Padi (N2,150), Business (N2,669), Xtraview + PVR access fee (N2,900)

Those of GOtv as follows: Gotv Max for N4,150, GOtv Jolli for N2,800, GOtv Jinja for N1,900, GOtv Lite for N900.

But the Executive Vice Chairman of FCCPC, Mr Babatunde Irukera while speaking with the News Agency of Nigeria (NAN) in Abuja on Wednesday said engagement were ongoing to check whether the company implemented a change in terms and conditions in line with the Commission’s mandated steps.

According to him, our orders were broad and it will be important that compliance is prioritised.

“Although we cannot, and did not regulate price except in limited circumstances requiring presidential approval and gazetting.

“As such, our order to MultiChoice did not prevent them from pricing their services in a manner acceptable between them and their subscribers.

“We regulate price gouging. The nature of gouging is post-fact, meaning that when a price movement occurs, we can investigate to determine if it is excessive, exploitative, unrestored or manifestly unjust.

“Such is a very intricate investigation and the fact of the existence of any increase is not the entire evidence.

“There is a method to analyse the increase and other circumstances leading to it.

“As in the case of pharmacies, we are prosecuting for inordinate increases of certain products during early stages of the COVID-19 pandemic.

For now, the first check with MultiChoice is whether they implement, or intend to, a material change in terms and conditions (of which price is one) without the steps the Commission has mandated as conditions precedent,’’ he said.

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Inflation: MultiChoice increase prices for GOtv, DStv packages

Alice Babalola — Tue, 22 Mar 2022 13:53:14 +0000

MultiChoice Nigeria has increased the prices of DStv and GOtv packages.

This was according to a statement on Tuesday, nothing that the new pricing regime will take effect April 1, 2022.

“In light of the rising costs of inflation and business operations, we have had to review the price of our packages to keep delighting our customers with great entertainment”, it reads.

Multichoice said customers who subscribe on or before April 1 would be eligible to pay the old price.

New DStv rates are: Premium (N21,000), Compact + (N14,250), Compact (N9,000), Confam (N5,300), Yanga (N2,950), Padi (N2,150), Business (N2,669), Xtraview + PVR access fee (N2,900)

Those of GOtv as follows: Gotv Max for N4,150, GOtv Jolli for N2,800, GOtv Jinja for N1,900, GOtv Lite for N900.

Additionally, subscribers that pay consistently (before their due dates) for a period of 12 months would enjoy the old price.

“Customers who pay for 10 months upfront on the new price will get the 11th and 12th month free,” the statement added.

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DStv, GOtv subscribers may Pay More from September

Alice Babalola — Fri, 27 Aug 2021 12:35:40 +0000

Barely one year after the last subscription fee increase, there are strong indicators that Multichoice Nigeria will increase the subscription fee across all its DStv and GOtv packages from September 2021.

A source close to the company revealed that subscription prices may increase by about 10% with premium package going as high N21,000, Compact Plus will go above N14,000 and GOtv Max subscription jumping to slightly above N4000, once the new price takes effect.

This is not a lone occurrence for Nigerian subscribers, as Multichoice has increased the subscription charges in other African countries over the last 6 months. This week, Ghana, Malawi, and Tanzania announced a new price regime from September 1.

MultiChoice Ghana’s latest increase is coming just 6 months after its last price hike. MultiChoice Ghana gave no reasons to its customers or the media for its latest price hike. From September 1, DStv Premium will rise by 5.6% from GHS369 (R913) per month to GHS390 (R965) per month, DStv Compact Plus by 5.26% from GHS228 to GHS240, while DStv Compact will increase by 5.2% from GHS152 to GHS160.

Despite the probe by the Nigerian Senate in 2016, over alleged unwholesome practices and unreasonable subscription hikes, Multichoice Nigeria still makes price adjustment a yearly ritual. The company has hiked its subscriptions by an average of 31% in five years.

In 2020, the pay-TV increased subscription price twice within a space of three months. Recall that there was a price increase in June 2020 (to reflect a 2.5% VAT) and another 9 – 14 percent increase in subscription prices in August 2020. The 10 – 14% increase across board from September 2021, is coming exactly one year after the last one.

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DStv, GOtv Subscribers to pay more

Alice Babalola — Wed, 02 Sep 2020 13:32:02 +0000

Subscribers to DStv and GOtv woke up on Tuesday to new subscription rates following upward adjustments of prices by MultiChoice.

The adjustments came barely three months after MultiChoice increased its subscription rate for Nigerian customers.

It hinged the latest review on the implementation of 7.5 per cent Value Added Tax (VAT) introduced by the Federal Government.

A statement by the company said the decision was made after a review of its business operations and careful consideration of the market trend.

Its Chief Executive Officer John Ugbe said in a statement: “We have made efforts to contain any price adjustments on subscription prices. However, in order to ensure the sustainability of the business we have to consider financial impacts, including inflation as well increased content and operational costs.

“As such we have reviewed the prices of some of our bouquets so that we can continue to survive as a business and bring quality entertainment to our customers.

“To arrive at the decision to adjust prices, we took into account many factors, including the impact on the customer, current inflation, which stands at 12.82 per cent, the highest in 27 months; content costs and efficiencies within the company.”

The adjustment affected packages on the DStv and GOtv platforms.

With the adjustment, DStv Compact subscribers have their subscription raised by 13.3 per cent (N7, 900 up from N6, 975).

DStv Compact Plus subscribers have their rates increased by 9.8 per cent from N10, 925 to N12, 000. The DStv Premium was increased from N16, 200 to N18, 400 (13.6% hike).

The notification to increase the price came few days after House of Representatives summoned the company’s management to explain the last price hike in June.

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