- Accuses MultiChoice of Overpricing Despite Cedi Appreciation
The Ghanaian government has issued a firm ultimatum to MultiChoice, operators of satellite television service DStv, demanding a 30% reduction in subscription fees by August 7 or face a suspension of its broadcasting license.
The directive, as reported by Ghana’s state-owned Daily Graphic, is aimed at bringing local subscription rates in line with regional peers and adjusting for the Ghanaian cedi’s significant gains against the US dollar in recent months.
Minister of Communication, Digital Technology and Innovations, Samuel Nartey George, criticised MultiChoice Ghana for hiking its subscription prices by 15% in April, calling the increase unjustified in light of the local currency’s appreciation.
“The same premium DStv bouquet that costs $83 in Ghana goes for just $29 in Nigeria,” George noted, pointing to what he described as pricing discrepancies that do not reflect current economic realities.
He further disclosed that MultiChoice had offered to freeze prices and temporarily suspend the repatriation of profits to its headquarters. However, the government rejected the proposal, insisting on a direct reduction in prices.
So far this year, the cedi has appreciated by 40% against the US dollar, making it the world’s second-best performing currency according to Bloomberg, trailing only the Russian rouble.
In response, MultiChoice said the government’s proposed pricing structure is impractical.
“It is not tenable to reduce the DStv subscription fees in the manner proposed by the minister,” the company said in a statement. “We strive to keep fees as low as possible despite the extremely challenging competitive and macroeconomic environment, without compromising on customer choice and service quality.”
The standoff has stirred public debate in Ghana, where consumers have long complained about rising pay-TV costs. The outcome of this regulatory challenge could set a precedent for how multinational media firms price services across African markets.
