This frenzied cable TV oversight

A marketplace is often boisterous. For, it’s difficult to have conflicting interests, a quest for money-making, need to maximise scarce resources, and duty to maintain economic and social equilibrium, all in one setting, and still expect the serenity of a village stream. The ongoing war in the cable television segment of the broadcast industry is, therefore, not completely off-rail. The dramatis personae are MultiChoice Nigeria Limited, owners of DStv and GOtv, the Federal Competition and Consumer Protection Commission (FCCPC) and House of Representatives. Not to mention the other interested parties in the form of consumers and market competitors.

This time, the hostilities have happened rather quickly. Late last month, MultiChoice had put FCCPC on notice about its plans to effect upward reviews of the prices of its products with March 1 as the intended implementation date. The commission’s response was a directive to the company to suspend the proposed action and, instead, step forward on March 6 with strong reasons for the hikes. The statements issued by FCCPC’s Director, Corporate Affairs, Ondaje Ijagwu, in the course of the festering conflict clearly express the agency’s grievances against the pay television giant. They include allegations of unilateral price shifts, cases of abuse of market dominance, worries about unwholesome anti-competition practices; application of more favourable pricing options in other countries; and some additional concerns that border on institutional unfairness. Substantial accusations all, they seem. But complaints, no matter how compelling, do not automatically translate to guilt.

The consumption regulatory organisation was unambiguous about its resolve to pursue the reversal of the perceived exploitation of MultiChoice to a logical conclusion. Ijagwu had stated plainly that, “Maintaining the status quo on pricing is essential to prevent any potential consumer harm during this period. Further updates will be provided as the investigation progresses…. Should MultiChoice fail to provide satisfactory explanations or be found in violation of fair market principles, the FCCPC will be left with no other option than to impose regulatory penalties, sanctions, or other corrective measures to protect Nigerian consumers.”

Whatever MultiChoice made of the order to maintain the previous rates, it went on with the increases all the same. And in a move not surprising to watchers of the now familiar tussle between it and some government institutions, the House of Representatives on March 5 ordered MultiChoice to step back from its controversial decision. Again, the lawmakers’ grounds appear innocuous: Nigerians are saddled with daunting financial hunchbacks; that the raise was happening for the second time in less than one year; that many people have been forced to discard their decoders; that some sort of monopoly has now been foisted on consumers by the accused through unconventional means; and that the hikes have been going on without any commensurate enhancement in service delivery. The House committee on commerce was then mandated to investigate the alleged infractions and report to the plenary in four weeks’ time. That intervention hasn’t halted the missiles, unfortunately.

The FCCPC headed to Federal High Court, Lagos Judicial Division, last week for adjudication. Put on the defensive are the cable firm and its boss, Mr John Ugbe. As Ijagwu put it, his agency “is committed to protecting Nigerian consumers from exploitative business practices and ensuring that dominant players in any sector adhere to fair market principles and legal compliance.” Surely, the statutory duty of the commission to shield the populace from predatory and greedy providers of goods and services is not in doubt here. But, the enforcement of law and order in any situation isn’t only always about its letters. The spirit and necessity matter too.

On May 2, 2024, in a piece on this page titled, “Regulating Pay Television Companies”, I attempted to advance reasons why oversight functions should proceed with caution, why official doggedness could achieve outcomes that might be antithetical to the overall socio-economic wellbeing of the country. My humble thoughts at the time: “Things that are fundamental to life like food, water, medicines and even oxygen are being raised beyond the reach of ordinary Nigerians as if that’s the most natural thing to do. The country’s consumer protector manages to understand and reason with those providers. Then, items like television programmes which, in most cases, have no direct relationship with actual survival have become vital and deserving of red-alert scrutiny….

“Enough of chasing shadows. These unequal and concerted moves to control its prices may in fact have unwittingly endorsed the centrality of MultiChoice to the Nigerian cable television industry. For a country that is sufficiently addicted to European football, the fixation to the firm that seems to permanently enjoy its transmission rights is understandable. But that shouldn’t be an excuse for the present arm-twisting. The passion that Premiership, La Liga, Bundesliga, Serie A or any other exclusive programme generates can be well channelled towards the satisfaction of the transmitting agents and viewers.

“In the long run, antagonism won’t help anyone. Certainly not Nigeria and her citizens who shouldn’t place unwarranted hurdles before foreign direct investment, FDI. The National Assembly too should by now be tired of summoning MultiChoice for questioning on pure business issues. Corporate bodies and individuals are grappling, with little success, with the mess brought on the nation by the twin dragons of oil subsidy removal and ruptured forex transactions. Singling out and stifling a major player would be counterproductive. It’s not too late for FCCPC to take the path of impartiality and decency.”

One or two facts have indeed changed since then but the fundamentals haven’t. For instance, FCCPC is now headed by Mr. Tunji Bello who has injected fresh energies into the institution. Truly, the efforts to defend Nigerian consumers deserve unreserved commendations. For long, residents have had to live in an environment where no one or nothing protects anyone from anything. They’re accustomed to being at the mercy of the volatility of market forces, sadly. So, seeing a public entity rise to the occasion ought to gladden the people.

Even then, boundaries shouldn’t be ignored. This subject is now litigious but understanding the hard and soft realities and deferring to them, to some at least, are equally critical to the performance of the macro and micro economies that all the sides in this crisis are pursuing. Yes, Nigerians are overburdened with hyperinflation and a weak currency. But since they have designed ways of coping with more vital items like medications, food, shelter and transportation, they may well devise methods of tackling whatever MultiChoice or any other television provider throws at them. I have been a DStv subscriber for many years. Some days ago, a pay television agent tried to market an alternative to me. For me, a new chapter may just be beckoning. Who knows?

Let’s be clear. No citizen, human or institutional, should be allowed to breach our laws with impunity. MultiChoice can’t be an exception. The present biting truths about our national life, however, require deep considerations and tact. Individuals, homes and other entities are faced with thinning endurance levels. This sordid experience has left companies with reduced capacities for job creation and sustenance; to contribute meaningfully to the national economy; and still declare respectable bottom-lines. Since the country lacks adequate encouragement for the surviving organisations in key sectors, it mustn’t be seen to generate or aggravate disincentives.

Watching programmes domiciled on DStv and Gotv has not yet been ranked among human rights, neither has it been proved to undermine life terminally. It’s possible to achieve a win-win in the current drama of grit if the FCCPC, Representatives and MultiChoice can sit at a table and amicably contemplate and share the cake at stake: customer satisfaction, profit, tax, social responsibility. Nigeria doesn’t need more heat.

Ekpe, PhD, is a member of THISDAY editorial board.