The National Communications Authority (NCA) of Ghana has notified Multichoice Ghana Limited that, under Section 13 of the Electronic Communications Act, 2008 (Act 775), it intends to suspend the company’s Subscription Management Service for a Satellite Television Broadcasting (Pay TV Direct-to-Home Bouquet) Authorisation.
In a press release on Thursday, August 7, the Ghanaian regulatory body stated that the action comes after the company’s pricing strategy was against the “public interest.”
“This regulatory action is subsequent upon the company’s pricing model, which is deemed inimical to the public interest,” it stated.
The NCA has given Multichoice Ghana thirty days to express its opinions, take corrective action, and submit a written statement outlining its objections to the authorisation being suspended.
“By this notice, Multichoice Ghana has thirty (30) days within which the company may present its views, provide remedial action, and submit a written statement of its objections to the suspension of the authorisation,” it added.
Earlier warning by Ghana to Multichoice
The government of Ghana has earlier given the satellite broadcaster DStv until Thursday to lower subscription costs or risk revoking its broadcasting license.
Samuel George, the Communications Minister, stated that if MultiChoice Ghana, the local DStv operator, does not meet the regulatory requirements for a price reduction, he has instructed the National Communications Authority to begin suspension proceedings against the company.
“I have directed the NCA to act swiftly.
“If by the 7th of August DStv has not complied, their broadcasting licence will be suspended,” George said.
He criticized the company for overcharging its services despite favorable exchange rates, pointing out that its 15 percent subscription increase in April was unreasonable given the strengthening cedi.
The standoff comes after DStv rejected a government plan to reduce subscription costs by thirty percent.
In light of the nation’s current economic situation, George criticized the company’s defense, pointing out that the cedi had depreciated by 200 per cent over eight years.
“My fidelity lies with the Ghanaian people.
“They have been cheated for years, and it is time we end that,” George said.
Multichoice rejects Ghana’s proposal
In a statement released on Sunday, MultiChoice Ghana, a division of the MultiChoice Group in South Africa, denied the government’s request, stating that it was “not tenable” given the current state of the economy and the requirement to preserve service quality.
The managing director, Alex Okyere, cautioned that imposing price reductions might jeopardize jobs and limit consumer choice.
He said the company had presented other proposals to the NCA and the minister.
George responded by criticizing the plans on X (formerly Twitter) and asking why the business complied with a court order to halt price increases in Nigeria but declined to do so in Ghana.
George said DStv’s proposal to keep prices the same while stopping revenue payments to its corporate office was nonsensical.
Ghana’s request to reduce DSTV’s subscription by 30%
Techpression reported in April that Samuel Nartey George (MP), the Minister for Communication, Digital Technology, and Innovations, urged Multichoice Ghana to lower DSTV subscription costs by 30 percent.
He cites the Ghanaian cedi’s notable appreciation and the public’s mounting discontent with the current rates.
The Minister stated during a meeting with a DSTV team, headed by Dr. Keabetswe Modimoeng, Group Executive for Regulatory and Corporate Affairs, that the government’s job is to address the concerns of Ghanaians, who have complained about the exorbitant DSTV rates and out-of-date content selection.
The Minister pointed out that DSTV prices have not kept pace with the positive economic shift, even though the cedi’s value has improved by 30 percent in the last five months.
He requested a 30 percent price reduction to keep up with the cedi’s appreciation and give consumers financial advantages.