The House of Representatives has mandated the Minister of Information and Culture, Mr Lai Mohammed to give marching orders to Multichoice’s Digital Satellite Television (DSTV) to reverse the recent June 1 price hike.
Rep. Unyime Idem, the Chairman, ad-hoc committee to investigate the Non-Implementation of Pay-As-You-Go (PAYG) tariff plan by broadcast satellite providers in Nigeria gave the directive on Tuesday in Abuja.
The committee while addressing the minister and other stakeholders, said they should commence full implementation of its directives.
Idem said “a marching order should be given to the service providers, particularly Multichoice’s DSTV, to reverse the recent June 1, price hike, and revert to the old price.
“This is because 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.”
He also said that the minister should come up with a robust strategy to break the monopoly and open up the industry for larger participation.
He added that PAYG regime for digital TV broadcasting in Nigeria with particular reference to DSTV, GOTV, Startimes and Kwese TV should be implemented.
Idem said that there should be deregulation of content right by Direct-To-Home (DTH), Digital Terrestrial Television (DTT) and Internet Protocol Television (IPTV) operators, while local content participation through content sharing should be encouraged.
According to the chairman, perhaps the most important policy document for Nigeria’s digital switch over project is the government white paper on the transition from analogue signal to digital signal.
He said that the the digital switch over, if fully implemented would allow for job creation and ensure that the monopoly enjoyed by the provider of DTH TV services and DTT, would be a thing of the past.
This, he said would allow for a better pricing regime and encourage PAYG pricing.
“Recall that the minister of information had in October 2019 disclosed the resolve of the Federal Government to break all forms of monopoly in broadcasting, because it is detrimental to the actualisation of industry potential.
“On Oct. 10, you inaugurated the National Broadcasting Commission (NBC) Reform Implementation Committee to, among others, implement reforms to end monopoly in the sector.”
Idem added that breaking monopoly would create jobs, wealth, promote local content, boost the advert industry and ensure that the Nigerian broadcast industry was at par with world best practices.
“Monopolies stunt growth, kill talents and discourage creativity. The dominant operators DSTV and others are using their power and financial strength to corner a chunk of the industry, to the detriment of others.
“This is totally unacceptable and untenable”, he said.
Responding, Mohammed said it was his considered opinion that the PAYG model, in spite of arguments against it was achievable in Nigeria.
He said the question often asked was why Nigeria could not have a PAYG model for pay-TV as was obtainable in telecommunications where subscribers pay for what they use?
“The answer has always been that both industries operate differently.
“Those opposed to the PAYG plan argue that telecoms service providers do not buy content like Pay TV providers do, because they are not in the business of providing entertainment content.
“What they buy is spectrum, for which they make a one-off payment. Entertainment content is not bought on one-off basis.”
He, however said he disagreed with that position, adding that while the present monthly subscription model was negotiated and established as a norm in the industry, a piecemeal model such as a weekly, bi-monthly or other fragmental period could be negotiated to accommodate frequently mobile subscribers.
“Indeed, this initiative would grow an untapped low-income subscriber base and such a new, more flexible option may even create some goodwill for a Pay TV brand.
“The current monthly subscription model in the industry most certainly does not preclude progressive initiatives on alternative payment models as have been proven by the platforms mentioned above.”
Mohammed said it should be noted that the PAYG model could be an offering for a daily, weekly, bi-monthly or such other limited duration.
He said it could also be a package that allows the subscriber to choose on an a la carte (piecemeal) basis, for channels or content priced either individually or on a small themed bouquet such as a sports package.
The third option he proposed was based on subscriber viewing at any point in time.
“In Nigeria, the existing platforms such as Multichoice and StarTimes can easily introduce any of the listed options without a complete overhaul of its broadcast architecture.
“Moreover, its existing billing model can exist side~by-side with the PAYG model”, he said.
According to the minister, StarTimes, a pay TV provider is already offering the PAYG model, thus puncturing the fallacy that it is not possible.
“All that is required is that the existing content redistribution contracts should be taken back to the drawing board to accommodate the PAYG options that I have listed above.
“The PAYG proposal provides an innovative approach to grow even untapped low-income subscriber base and is likely to create some goodwill for any brand.”
