Rising Cost of Operations Amid High Electricity Tariffs, VAT, Others Responsible for Subscription Increase -DSTV

DSTV, owned by MultiChoice Group, has said the increase in its costs of operation due to high electricity tariffs, a 50 percent increased in Value Added Tax (VAT) and pump price was the reason its subscription was adjusted to reflect the change in operating costs.

The Managing Director/Chief Executive Officer of MultiChoice Nigeria Limited, Mr John Ugbe, disclosed this on Monday in Abuja when he appeared before the House of Representatives’ Ad Hoc Committee Investigating the Non-Implementation of ‘Pay As You Go’ Tariff by Satellite Broadcast Service Providers.

The company blamed the situation on the Nigerian harsh business environment, especially the poor supply leading to the provision of alternative power sources for daily operation.

Speaking before Ad Hoc Committee, Ugbe said, “It is a tough environment for a lot of reasons. When we did the price adjustment, it was in response to the new Finance Bill (now an Act) and if you look at it, you will see that we were even late in making those changes.

“The adjustment at that time was just as a result of the new Finance Bill. The committee is also aware of the increase in the cost of living, petrol, diesel; these are very basic inputs that go into our service.

“We are part of the broadcasting industry that did not shut down for one day; we had to keep everything running.”

Responding to questions on the ‘Pay Per View’ option, Ugbe said, “Telecommunication companies can offer ‘Pay As You Go’; you can stop and start. Unfortunately, that is not the model in broadcast industry.

“You must also accept that we have to buy these services, repackage them and resell, and you cannot be selling differently from where you buy.”