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MultiChoice agrees to reduce DStv subscription fees – Sam George

MultiChoice vs Sam George: Will the NCA shut down DStv Ghana today?
MultiChoice vs Sam George: Will the NCA shut down DStv Ghana today?

The Minister of Communications, Sam George, has officially confirmed that MultiChoice Ghana has committed to reducing its subscription rates following sustained regulatory intervention by the government.

This development follows MultiChoice's eventual compliance with government requirements to provide comprehensive pricing data, including detailed bouquet price breakdowns, tax component analyses, and comparative pricing information from at least six other African nations.

This critical information was identified as fundamental to facilitating transparent, evidence-based negotiations regarding potential subscription fee adjustments.

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The provision of this requested data has enabled the establishment of a dedicated pricing review committee to oversee the reduction process.

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In response to these developments, the government has constituted a specialised committee tasked with determining the revised pricing framework, with a firm deadline of September 21 established for finalising the reduction strategy.

During a press conference held on Friday, September 5, the minister announced this significant breakthrough and confirmed that the pricing revision process is currently underway.

He informed journalists.

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We've taken the decision to immediately establish a stakeholder committee comprising representatives from the Ministry of Communication, Digital Technology and Innovation. The regulator is the NCA, MultiChoice Ghana and MultiChoice Africa. I will personally chair the committee.

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MultiChoice has requested a 30-day window for the committee to arrive at what percentage of reduction will be achieved. So let's be clear, they have finally accepted that there will be a reduction. Now they want us to discuss the level of reduction. I believe, as minister, that we do not need 30 days. 14 days is enough for us to reach this decision, inclusive of weekends

Prior to this agreement, the government had issued a firm ultimatum requiring MultiChoice to implement a 30% price reduction by September 6 or face suspension of its broadcasting licence.

This directive was reinforced by daily penalties of GHC 10,000 for non-compliance, which had accumulated to approximately GHC 150,000.

The minister further indicated that the accumulated fines from the 24-day period since the directive's implementation would be collected as scheduled.

Background: The DSTV vs Government Dispute

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The conflict between MultiChoice Ghana (operators of DSTV) and the Ghanaian government emerged from mounting public concerns over the affordability of satellite television services. Citizens had long complained about the high cost of DSTV subscriptions compared to similar services in other African countries, prompting governmental intervention to investigate pricing structures and demand transparency from the broadcasting giant.

The dispute escalated when the government, through the National Communications Authority (NCA), began requesting comprehensive pricing data from MultiChoice to justify their subscription rates.

This included detailed breakdowns of bouquet prices, tax components, and comparative pricing across at least six African markets.

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MultiChoice's initial reluctance to provide this information intensified tensions between the company and regulatory authorities.

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The government's position was strengthened by public support and evidence suggesting that Ghanaian consumers were paying disproportionately higher rates for similar services available at lower costs in neighbouring countries.

This led to increasingly stringent regulatory measures, including ultimatums and financial penalties, as authorities sought to ensure fair pricing for consumers.

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