The Federal Competition and Consumer Protection Commission (FCCPC) has opened discussions with MultiChoice Nigeria over its increase of subscription prices for users of the DStv and GOtv packages.
The Executive Vice Chairman of the commission, Mr. Babatunde Irukera, was quoted by the News Agency of Nigeria, as confirming the discussions with the pay TV services provider.
Irukera said on Wednesday that the discussion was to check whether the company implemented a change in terms and conditions of its services in line with the Commission’s mandatory requirements
The EVC maintained that the commission’s orders were broad and that it would be important that compliance is prioritised.
He expatiated: “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”, the FCCPC’s boss added.
MultiChoice Nigeria had stated on Tuesday that the increase in DStv and GOtv subscription rates was necessitated by the rising inflation and cost of business operations.
Based on the company’s latest pricing template for pay TV services which comes into effect from April 1, 2022, the Xtraview +PVR access fee formerly N2,300, has been increased toN2,900 while Business will now go for N2,669, Padi from N1,850 will now be N2,150, Yanga formerly N2,565 will now be N2,950, and Confam, which used to cost N4,615 will now be N5,300.
Similarly, Compact which currently is N7,900 will be N9,000, Compact Plus now N12,400 will be N14,250 effective from April 1, while Premium, which was N18,400 will be subscribed at N21,000.
For GOtv, Max package which is now N3,600 will increase to N4,150, Jolli now N2,460 will go for N2,800; Jinja which now is subscribed at N1,640 will go for N1,900 and Lite which now is N800 will increase to N900.
As part of its regulatory mandate, the FCCPC has ordered the company to introduce a price lock option that will allow subscribers to maintain the same subscription fee for a minimum period of one year subject to a contractual agreement that clearly specifies the applicable terms and conditions.
The Commission also directed MultiChoice to have a better value for money proposition for annual prepayment of subscription, including the ability to suspend subscription at least once every quarter of the year.
