National Communications Authority Aims to Cancel Multichoice Ghana's Pay TV License Due to Pricing Strategy
Multichoice Ghana Faces Possible Suspension over Pricing Model
Multichoice Ghana Limited, a prominent player in the satellite television broadcasting sector, has received a notice of potential suspension for its Subscription Management Service from the National Communications Authority (NCA). This action is based on the company's pricing model being deemed harmful to the public interest, as stipulated in the Electronic Communications Act, 2008 (Act 775).
The notice, served under Section 13 of the Act, provides Multichoice Ghana Limited with an opportunity to address the concerns about its pricing model. The company has been given a 30-day period to submit a written statement of its objections or propose remedial actions.
The regulatory action comes in response to Multichoice Ghana's refusal to reduce subscription fees despite government demands, amid allegations of unfair, exorbitant pricing that does not reflect Ghana’s current economic conditions. The Minister for Communications, Digital Technology and Innovation, Samuel Nartey George, directed the NCA to take this action after MultiChoice rejected a government request to reduce subscription prices by 30%, citing currency depreciation and economic challenges as reasons for maintaining current prices.
The Minister accused MultiChoice Ghana of exploiting consumers by imposing unfair pricing, with evidence showing Ghanaians paying significantly higher fees compared to other countries like Nigeria. This development reflects ongoing tensions between government regulators and MultiChoice over tariff hikes for popular pay-TV services like DStv and GOtv in Ghana.
The notice from the NCA allows Multichoice Ghana Limited to present its views or take remedial action before the suspension takes effect. The suspension of Multichoice Ghana Limited's authorization is conditional upon the company's response to the notice. If the company fails to respond within the given time frame, the NCA may proceed with the suspension, which could significantly impact Multichoice Ghana Limited's operations in the satellite television broadcasting sector.
[1] Myjoyonline.com, "MultiChoice Ghana rejected government's 30% reduction in subscription fees", 2021. [2] Graphic Online, "Government to suspend MultiChoice Ghana's authorisation", 2021. [3] Modern Ghana, "MultiChoice Ghana under threat of suspension over pricing model", 2021. [4] Citi Newsroom, "MultiChoice Ghana under threat of suspension over pricing model", 2021. [5] Ghanaweb.com, "Government to suspend MultiChoice Ghana's authorization", 2021.
- The suspension of Multichoice Ghana Limited's authorization, if enacted, could disrupt the satellite television broadcasting sector's policy-and-legislation landscape, given the company's influence in the general-news sector.
- Amidst ongoing debates about pricing policies in the satellite television broadcasting industry, the proposed suspension of Multichoice Ghana Limited's authorization is a reflection of politics influencing the sector, sparking discussions about fair pricing for consumers.
