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| Image: Punch |
The Federal Competition and Consumer Protection Commission (FCCPC) has weighed in on the current price hike by Multichoice, the owners of DSTV and GoTV.
Adamu Abdullahi, the acting Executive Vice Chairman of the FCCPC, disclosed that the company has officially informed the commission on the reason behind the proposed price hike.
Abdullahi made this known during an appearance on Channels TV. He discussed receiving a detailed explanation from Multichoice regarding a recent price increase.
He proposed involving regulatory agencies such as the Nigerian Communications Commission and the National Broadcasting Commission to investigate the factors behind the price hike, including the rising costs of electricity and spare parts due to currency fluctuations.
He emphasized that if Multichoice is found to be abusing its dominant market position by increasing prices as the sole service provider, they would take appropriate legal action.
Speaking further, the FCCPC boss said the management of Multichoice had submitted a four-page letter to the commission, explaining reasons for the recent hike in the price of its products, beginning from May 1.He proposed involving regulatory agencies such as the Nigerian Communications Commission and the National Broadcasting Commission to investigate the factors behind the price hike, including the rising costs of electricity and spare parts due to currency fluctuations.
He emphasized that if Multichoice is found to be abusing its dominant market position by increasing prices as the sole service provider, they would take appropriate legal action.
He said though the company remains a dominant provider of cable television in the country, the commission would not hesitate to wield its stick if the reasons are not justifiable.
He said, “Also yesterday, we got a four-page letter from Multichoice, telling us the reasons for the price increase. What we need to do is bring in the Nigerian Communications Commission, the sector regulatory agency, and even the National Broadcasting Commission. We will look at the variables that caused the rise, At a glance, I saw things like the cost of electricity and, the cost of dollars for spare parts. We would go through these items individually and find out how they have affected their operations.
“At the same time, they are not supposed to do so because you are the only provider of the services in the market and abuse your dominant position in the market. And if by chance we confirm that it is what they are doing, we would go by the law and do what we are supposed to do.”
MultiChoice, a major satellite television service provider in Sub-Saharan Africa headquartered in South Africa, recently announced price hikes for its DSTV and GOtv packages, citing increased business operation costs. The new prices will take effect on May 1, 2024.
The DSTV Premium package, previously priced at N29,500, will now cost N37,000, while the Compact Plus package, which was N19,800, has been increased to N25,000.
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#GOtv
#MultiChoice
#FCCPC
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