Dr. Adamu Abdullahi, Acting Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), has revealed that Multichoice provided a detailed explanation for the recent price hikes in their cable services, DStv and GOtv, in a four-page letter submitted to the commission.
In a recent interview with Channels TV posted on Sunday, Abdullahi outlined that Multichoice cited factors such as high electricity costs, expenses related to generator operations, and difficulties in accessing dollars as key reasons behind the price adjustments.
Abdullahi emphasized that the FCCPC will carefully scrutinize Multichoice’s reasons for the price increases and will collaborate with regulatory bodies like the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) in the review process.
He stated, “If we find that Multichoice’s pricing is arbitrary or if they are manipulating the market in any way, we will not hesitate to take appropriate regulatory action.”
“We received a detailed letter from Multichoice explaining the factors contributing to the price hikes. We plan to convene a meeting with NCC, NBC, and Multichoice to examine each of these factors and their impact on the company’s operations,” Abdullahi added.
Regarding the dominance of Multichoice in the market, Abdullahi acknowledged that customers often have limited alternatives for cable television services, which necessitates careful regulatory oversight.
“We understand that Multichoice holds a significant market share, which is why it’s crucial for us to ensure transparency and fairness in their pricing practices,” Abdullahi stated.
Background:
Earlier reports from Nairemetrics indicated that Multichoice Nigeria, a leading Pay-TV operator, announced a price increase of at least 25% for its DStv and GOtv packages. This marks the third price adjustment since last year, with the latest increase set to take effect from May 1, 2024.
Last year’s increments ranged between 19% and 20%, but Multichoice has now announced a 25% to 26% increase across its packages. Customers were notified of the new subscription fees via email titled “Price Adjustment on DStv and GOtv Packages” on April 24, 2024.
For further details on the new price rates, customers are directed to refer to the communication from Multichoice.
