NCA serves Multichoice with notice of intention to suspend broadcasting authorisation

The National Communications Authority (NCA) has issued a formal notice to Multichoice Ghana Limited, indicating its intention to suspend the company’s authorisation to operate subscription-based satellite television broadcasting services in the country.

According to a press release from the regulator, the decision stems from concerns about Multichoice Ghana’s pricing strategy, which the Authority describes as deemed “inimical to the public interest.”

The notice targets the company’s Subscription Management Service for a Satellite Television Broadcasting (Pay TV Direct-to-Home Bouquet) Authorisation’, issued under Section 13 of the Electronic Communications Act, 2008 (Act 775).

“By this notice, Multichoice Ghana has thirty (30) days within which the company may present its views, or provide remedial action, and submit a written statement of its objections to the suspension of the authorisation,” the NCA stated.

The regulatory action follows mounting pressure over the past several weeks from consumer advocacy groups, Parliamentarians, and government officials, who have called into question the fairness of Multichoice Ghana’s pricing model.

At the centre of their concern has been the considerable disparity between subscription fees charged in Ghana and those in neighbouring countries. Comparisons have highlighted that Ghanaians pay approximately US$83 for DStv’s premium bouquet, whereas subscribers in Nigeria pay roughly US$29 for the same service.

This disparity has triggered wider concerns about pricing equity and consumer protection, especially in light of the cedi’s recent appreciation against major foreign currencies. Critics argue that Multichoice has failed to reflect local economic conditions in its pricing, effectively transferring external cost burdens onto Ghanaian consumers.

The Minister of Communications,  Digital Technology and Innovations, Sam Nartey George, has taken a direct role in the matter, demanding that Multichoice implement a 30 percent reduction in its subscription fees.

He described the existing pricing structure as exploitative and unfair, insisting that the company realign its operations with current macroeconomic conditions. Last week, he instructed the NCA to trigger regulatory sanctions if Multichoice did not comply.

In response, Multichoice Ghana has rejected the proposed reduction, stating that a 30 percent cut is not feasible without jeopardising service quality and staff retention. The company is alleged by the sector Minister to have described the cedi’s appreciation as unsustainable, a position the entertainment services provider has denied.

The company instead offered to freeze current prices and temporarily suspend the repatriation of profits to its South African parent company. That proposal was rejected by the Minister, who described it as failing to address the core concern of affordability for Ghanaian consumers.

The post NCA serves Multichoice with notice of intention to suspend broadcasting authorisation appeared first on The Business & Financial Times.

Read Full Story