The house of representatives has asked the federal government to implement the pay-per-view model for satellite TV subscribers, to encourage “healthy competition” in the broadcast industry.
The lower legislative chamber passed the resolution on Wednesday, following the adoption of a report on the increment of tariffs by broadcast digital satellite service providers.
This was after Unyime Idem, chairman of the ad hoc committee, moved a motion that the report be considered.
“That the house do consider the report of the ad hoc committee on non-implementation of pay–as–you–go and sudden increment of tariffs plan by broadcast digital satellite service providers,” he said.
In March 2020, the house set up the ad hoc committee to probe complaints about high tariffs by broadcast digital satellite service providers.
At the investigative hearing in June 2020, the panel specifically tackled the Digital Satellite Television (DSTV), a South Africa-based company owned by MultiChoice, for high tariffs and restricting Nigerian customers to prepaid plans.
But during plenary session on Wednesday, the lower legislative chamber said the “visible absence of competitors in the industry was tacit approval of monopoly of the industry by the present operators”.
In their resolution, the lawmakers called for “expedited action on implementing the content of the National Broadcasting Code and the Nigeria information Policy of 2014 that would trigger healthy competition in the industry”.
“The entertainment industry has a wider spectrum with limitless opportunities for the teeming youths. The visible absence of competitors in the industry was tacit approval of monopoly of the industry by the present operators,” the house said.
“Timely application of these government regulatory intervention measures already articulated will revolutionise the
industry and meet the people’s yearnings on pay-as-you-go, pay-per-view and price reduction.
“Our extant laws that moderate operations in the industry is to be fine-tuned to meet the 21st century regulatory laws of the industry that is dynamic as the entertainment industry.
“The commission that has the power to license and regulate the activities of service providers must, as well, have the power to moderate in the protection of consumers. There is little or nothing a regulator can do if he is handicapped by laws that are not properly tailored to the needs of the society.”
The lawmakers added that “uncontrollable” market forces are responsible for the hike in the tariff.
“The recent increment of VAT by 2.5% by the Financial Amendment Act of 13th January, 2020, the fluctuating
foreign exchange rate in the country that affects the cost of content, broadcast equipment, experienced hire and technical infrastructure increase, increase in bouquets for a wider choice,
inflation on the cost of production and need to maintain workforce not throwing many young men and women who are gainfully employed by pay-tv into the labour market were some
necessary indices for price hike,” they added.