Tuesday, August 8, 2023

MultiChoice Malawi in price hike court fight as country's regulator says DStv tariff increases are not allowed and that 'current, unchanged' fees will apply.


by Thinus Ferreira

Growing confusion reigns in Malawi over DStv and GOtv prices after MultiChoice Malawi went to court to get emergency injunction against the country's communications regulator after the regulator ordered MultiChoice not to implement it's latest price hikes.

MultiChoice Malawi's latest price hike fight comes as the latest tiff following an ongoing series of drastic MultiChoice price increases across sub-Saharan Africa in various countries ranging from GhanaNigeriaUgandaZambia, from July in Tanzania and for a shocking second time in Kenya within months.

Since August MultiChoice suddenly hiked DStv prices for a second time within a year in Ghana.

When MultiChoice Malawi announced yet another price hike in the country which was set to come into effect from August 2023, the country's communications regulator, the Malawi Communications Regulatory Authority (MACRA) ordered MultiChoice not to implement any price increases from August.

MultiChoice Malawi then applied for an emergency injunction against the MACRA order, with the country's High Court which issued the injunction on 31 July, for a period until 8 August. 

What happens from today in Malawi with MultiChoice Malawi pricing is unknown - does MultiChoice Malawi now go ahead with price increases?

Daud Suleman, MACRA director-general, in a statement, says "the current, unchanged and approved DStv tariffs will apply from 8 August 2023 unless otherwise directed by the court" - which means that MultiChoice isn't allowed to charge its subscribers more since this month.

"On 4 August 2023, MACRA was served with yet another order from the High Court extending the temporary stay of injunction to Monday 7 August 2023."

"The extension was made following an application by MultiChoice Malawi to the court, in which MACRA understands, MultiChoice Malawi argued that its principal, MultiChoice Africa Holdings is unable to revert to the old DStv tariffs, claiming that reversing the tariffs would cause damage to MultiChoice Africa Holdings' business and operations in Malawi and several other countries."

MultiChoice Mawali in a press statement says it is "puzzled" by MACRA's order, since MultiChoice Malawi doesn't implement DStv price hikes but MultiChoice Africa Holdings.

"MultiChoice Malawi is puzzled by MACRA's conduct as MACRA is aware that MultiChoice Malawi does not offer the DStv service to the public and therefore does not set or adjust the tariffs for DStv."

"MultiChoice Malawi is also not the agent for MultiChoice Africa (MAH), the provider of the DStv service who had already effected the price increase on their systems."

"MultiChoice Malawi has applied and received approval from MACRA for adjustments of the GOtv tariff. This is so because MultiChoice Malawi provides the GOtv service to the public and sets the tariff for that service."

MultiChoice Malawi wants to increase DStv prices in the country as follows: DStv Premium from K67,000 to K 79,000, DStv Compact Plus from K43,000 to K51,000, DStv Compact from K27,500 to K33,000, DStv Family from 16,400 to 19,500, DStv Access from K10,200 to K12,500 and DStv Kufewa from K6,850 to K7,500.