As the legal battle between Multichoice, a cable TV service provider with the Consumer Protection Tribunal has continued unabated, Consumers have continued to react to the ongoing crisis. Most of these Consumers who are distinguished members of Consumers Assembly, a platform dedicated to consumer’s advocacy and enlightenment proffers solutions that can solve the problem.
For instance, a distinguished member of the Assembly said, “On FCCPC vs MultiChoice, I find the actions of the former as discriminatory and against open market economy which Nigeria operates. In such economy, prices are dictated by market forces. And it is free entry free exit system. It is an economic system where goods, services, and capital are exchanged with minimal restrictions or government intervention.
In this system, market forces like supply and demand determine prices and the allocation of resources. Key characteristics of an open market economy include: Free trade, competition where businesses compete freely, leading to innovation, efficiency, and better prices for consumers and minimal regulations where Government involvement in the economy is limited to essential regulations to protect property rights, enforce contracts, and ensure fair competition.
But FCCPC, in this case has shown partiality to single out MultiChoice for price regulations while Discos, Breweries etc arbitrarily increase prices without questions.
FCCPC is also not asking questions of price increases on bread, rice, yam, tomato and other essential commodities for common man. So, why MultiChoice alone?
Again, the Tribunal in a civil society behaved like thin god to hammer MultiChoice with fine for questioning its ruling. Is this military rule?
Nigeria is behaving as if it is operating both communism and authocraric system while telling the world that it is democratic and has open free market system.
Recently, government agencies shut down some businesses like KFC in airport. What the agencies should have done was to impose fine for any malfeasance instead of shutting down businesses that employ Nigerians. Today, the employees have gone home, and tomorrow they are hungry and we know the consequence.
FCCPC behaviour and similar actions can force companies like MultiChoice out of Nigeria thereby widening the doors of exit of companies.
Also recently, government came up with a rule to allow MultiChoice share its product like EPL with other satellite operators in Nigeria. How considerable was this where you share your innovation or competitive edge with others.?
FCCPC and other government agencies should tread softly with tactfulness in order not or aggravate situations. I rest my case.
On his part, another parliamentarian, said; “I would like to make a few observations. While Nigeria may be operating an open market economy with prices that are largely determined by market forces, it is also important to note that any company that is a market leader and does not have a strong competitor is likely to abuse the provisions of an open market economy.
Again, when you watch the body language of DStv, everything they’ve done in response to the clamouring against their indiscriminate price hikes have been brazen, defiant and sometimes even confrontational.
Sometime last year I had a long conversation with the company’s spokesperson, Caroline Oghuma (Nowadays she doesn’t even take calls anymore). She explained the reason behind the increase in the prices of their packages. As someone who lives in Nigeria, I understand the challenges they’re facing as a business.
But then, during that chat, I made some recommendations to her which I believed would have helped with cost-cutting measures. But no, the only tool in their box is price hike.
When I used to subscribe my DStv, I was on the Compact Plus plan. That plan has 145+ channels. What I recommended to them was – rather than jump to increase prices, can you find out the least watched channels and stop buying them? I don’t need 145+ channels. Rather than increase price, you can reduce the number of channels on the packages. Don’t just buy channels and foist them on customers. Do a survey and get your subscribers to tick their least watched channels. Look at the data and take a decision on what channels you should stop buying for now. Every business has cost-cutting measures.
When my former employer discovered that diesel cost was taking a serious toll on the business, it didn’t rush to increase the prices of its offerings, rather the company embraced solar energy, removed the old Air Conditioners and replaced them with energy saving ones. Rushing to increase prices is a low hanging fruit. It is a lazy solution that fails to accommodate the economic hardship we’re all grappling with.”
Reacting to the above position, another distinguished member of Consumers Assembly pointed out that, “My brother, thanks on your response and your good suggestion to MultiChoice on their operation model. It is a good suggestion, but it is one thing to suggest and it another for them to adopt your suggestion. They have their business reasons.
Secondly, Nigerian harsh environment may have foisted the monopoly or market leadership on MultiChoice. If Nigerian government considers satellite TV service as essential, it can empower locals to compete with MultiChoice just as USA could have done against Chinese or Russian company.
Moreso, in an open economic system, company like MultiChoice can price themselves out of market. I believe that some subscribers may have stopped subscription or downgraded their bouquet due to high price.
Edidiong, what do you think will happen if NB Plc sells Goldberg at N5,000 per bottle? Your guess is as good as mine.
Let’s see how the new French proposed owners of MultiChoice will operate.
But above all, MultiChoice needs serous competition. Tell NTA or any other operator to wake up.”
While making his submission, another Parliamentarian, disclosed that, “The Chair, I hail thee! Great response to the earlier one posted by another distinguished pen pusher. But, I have my reservations about this type of ‘international politics’ that you talked about here. I think the only way we should have told whoever cares to listen, including S/A, that ‘Nigeria has woken up’, is to encourage and provide some potent local alternatives to what Multi choice is offering in Nigeria. Government policies in the past few years have been harsh, unfriendly and toxic to business. Prospective investors are circumspect. They are scared of throwing their hats in the ring. Multi choice has been able to go this far because there are no viable competitions in that market segment. MTN and Econet did that in the past, in telecoms, before the advent of Glo. Creating a truly enabling environment in the country for businesses to thrive will put paid to these monopolistic tendencies from this pay TV brand, and many others.”
In his position, a distinguished member of the parliament said, “a member of this Honourable house made a guess at NB selling for N5000. Who said it cannot be possible. We have grudgingly been buying beer for N350 until it gets to N700, yet consumers are still grudgingly consuming.
The issue here is that Nigeria has lost its sense of good governance in everything including price control and product standard through politics of confusion.
Policy makers are never proactive in enforcing their laws. A people like the Asians will not give you chance to operate freely in their country with edging you out with obnoxious tax.
HiTv came as an indigenous firm, it operated well, creating avenue for every Nigerian to acquire their brand seamlessly. Glo came to give MTN hot chase, MTN strategized to remain in business alongside others.
What stops indigenous investors to harp into that opportunity to create seamless acquisition of cable TVs at homes? No matter how you look at it, it is still Nigerians that would jeopardise chances of indigenous investor from operating here. Who said one businessman in Nigeria cannot buy Multichoice franchaise?”
Surprisingly, a member of the assembly stated that, “very correct regarding Dstv. I don’t watch more than five channels on the yanga that i subscribe to right now. there must be an option for people. I personally don’t like most of those channels, SPORTS inclusive. i have never tuned to any sports channel all my life.”
Reacting to her position, another distinguished member of Consumers Assembly noted “Regards to that, if govt should form a policy of subscribers buying only channels they need, it would ease things. Come to think of it, what’s the sense in paying for over 20 channels and you have to watch just one channel at a time. There should be exclusive channels for kids under subscription, or pay-as-you-select method under subscription. It’s high time our lawmakers thinker what’s good for Nigerians with regards to PayTV subscription palavar.”
