DSTV Ordered To Reverse Tariffs Increase As Lai Mohammed Insists Pay-Per-View Possible In Nigeria

Subscribers of the Broadcast Satellite Service providers, particularly Multichoice’s DSTV and GOTV will soon heave a sigh of relief as the National Broadcasting Commission (NBC) Tuesday promised to give marching orders to service providers to reverse hike prices to old tariffs, with the Nigerian government vowing to break the company’s sports rights monopoly.

Multichoice had since June 1, increased tariffs of various subscribers to implement the 7.5 per cent hike in Value Added Tax (VAT). Checks on the DSTV site showed that Premium subscribers, who had been paying N15, 800 are to pay N16, 200; Compact Plus subscribers now pay N10, 925 instead of N10,650 while those on Compact are to pay N6,975 as against the previous N6,800, amongst others.

But the NBC Director-General, Armstrong Idachaba while appearing before the House of Representatives Ad-hoc Committee Investigating the Non-implementation of the Pay-As-You-Go Tariff by Broadcast Satellite Service Providers in Nigeria, said the agency would prevail on the service providers to reverse the price hike.

“I want to agree, with the Committee and call on DSTV to suspend the hike in tariffs”, Idachaba, said when pushed by the Committee.

This was as the Minister of Information and Culture, Alhaji Lai Mohammed, disclosed Federal government’s plan to break the Sporting rights monopoly of DSTV, stressing that he has already signed a code to break the monopoly of MultiChoice in the country.

“Our amendments to the Broadcasting Act, will affect the break in the monopoly of MultiChoice. Amendments to Section 628 of the Broadcasting Act, is in our broad national interest,” the Minister said.

He also debunked the claim that pay-as-you-go services is not practicable in Nigeria’s broadcast satellite industry, pointing out that a pay TV company is already offering the pay-per-view option which Multichoice is being prevailed upon to render.

Mohammed said, “The pay as go you model is achievable in Nigeria, not just achievable, a pay TV provider, Startimes is already offering it, puncturing the fallacy that it is not possible, all that is required is that the existing content should be taken back to the drawing board to accommodate the pay as you go options”.

“On the issue of monopoly, when I became Minister some years ago I was concerned about the issue of monopoly. We did include in the amended new broadcasting code, which I just signed and we followed due process in doing this, a draft was submitted to me, all stakeholders went through it, went to Lagos and it was approved”.

Earlier, Chairman of the Ad-Hoc Committee, Uyime Idem asked the Federal Government to give marching order to the Broadcast Satellite Service providers, particularly Multichoice’s DSTV to reverse the recent June 1, 2020 price hike, and revert to the old price.

According to him, this is not the best of times to increase the prices of services no matter the reasons for such increase, taking into consideration the ravaging effect of COVID-19 on the economy of Nigerians.

Udim also urged the Federal Government to come up with a robust strategy to break the monopoly and open up the industry for larger participation and asked the Federal Government to implement Pay-As-You-Go Tarrif (PAYG) regime for the digital TV broadcasting in Nigeria with particular reference to DSTV, GOTV, Startimes and Kwese TV.