Dismantling a Monopoly
Direct Satellite Television’s (DSTV) monopoly of the satellite broadcasting is threatened as the Federal Government takes measures to ensure a level playing field
By Chidiebere Onyemaizu
Up untill penultimate week, monopolist, exclusionist and octopus are probably consumerate terms that aptly typify Direct Satellite Television (DSTV’s) unfettered reign in the country’s satellite television industry in the past one decade. The South African satellite broadcast firm has since 1994, when it entered the Nigerian satellite broadcast business held tenaciously to the exclusive right to broadcast to Nigeria and some African countries, English Premier League (EPL) in addition to other international tv channels, such as Cable News Network (CNN), British Broadcasting Cooperation BBC (TV), EuroNews, Skynews, Discovery, Reality TV, National Geographic TV et cetera.
Instructively while DSTV which is a subsidiary of Multichoice, exerted its monopoly and exclusivity on the above mentioned international channels, indigenous Nigerian satellite broadcast firms that are also engaged in Direct-To-Home (DTH) Satellite TV services are left in the lurch as by-standers – barely finding their feet in the industry. These indigenous players include Trend TV, Trumpet Internet Televisions (TITV), Frontage Satellite Communication Nigeria Limited FSTV among others. While enduring the unequal opportunities that exist in the industry, they did not, however rest on their oars.
They had at different fora canvassed for level playing field among the DTH service providers, including DSTV. Infact, FSTV boss, Reuben Fayimubo, once sent a memorandum to the National Assembly, where in he condemned the monopoly of transmitting choice international channels by DSTV. Fayimubo in the memorandum advocated for the overhauling of the entire system of DTH service providers, so as to ensure an even playing field. The struggle for equity by the indigenous satellite TV DTH providers may have, however, yielded its set result as penultimate week, the Federal Government through the National Broadcasting Commission (NBC), wielded the big stick. The commission, in a statement signed by its Head, Public Affairs, Ladan Salihu, announced far-reaching policy overhaul in the entire DTH operations especially in the areas of exclusivity in programmes, acquisition and delivery.
Under the new regime, NBC decreed that “ no DTH licensee shall acquire rights for broadcasting for the territory of Nigeria, together with any other territory which presupposes the exclusion of any other Nigerian operator from having opportunity to acquire same.”
The NBC also went further to direct that “where existing contractual agreements obtain, upon their lapse, subsequent rights acquisition agreement must designate Nigeria as a stand-alone territory.”
In what seems a direct answer to the cries of indigenous DTH providers and by implication, an excruciating strike at the heart of monopolism and exclusivism, the NBC in the statement stated that “for the avoidance of doubt, where such rights exist, the holder shall not be allowed to exploit them, except other licensees are given the opportunity to exploit or access them”. The commission went further to “restate its desire to provide a level and competitive playing ground for all DTH operators.”
With the above far-reaching measures, DSTV’s monopoly in the industry has effectively been abbreviated, while at the same time ensuring a life-line and level playing field for hitherto hapless operators.
But is the company in the eyes of the storm, DSTV mourning the loss of its monopoly? It seems not so. When The Source visited the company on Tuesday, August 8, 2006 to ascertain its reaction to the unfolding drama, there was practically nothing on ground to suggest that the outfit was jittery over the new development. It was, instead, business as usual, as subscribers streamed in and out of the premises while officials strove to do their job.
The Source’s effort to speak to the company’s image maker, Segun Fayose, proved abortive as he was said not to be in the office and that “not even his deputy would speak to you on this matter because the company is yet to take a stand on it.”
However, a highly placed source within the company who pleaded anonymity told The Source that DSTV was prepared for competition with other DTH providers. The source insisted that the company was not losing sleep over the possibility of competing with the others.
Competition, the DSTV official argued, will rather than diminish the company further bring out the best in it “so we are not afraid of competition. We welcome others on board.”
However, in another breathe, the officials curiously claimed that DSTV was not monopolising any of the international channels. According to him, “most of these other DTH providers also transmit CNN and other channels. It appears Supersports is the bone of contention.” The source attributed the inability of indigenous DTH providers to access some of the international channels to the cost of doing so. “Some of them cannot cough out the huge amount of money involved in buying the transmission franchise of some of the international channels and that is why it appears DSTV is monopolising them.”
However, the logic of the above argument, as posited by the DSTV official fly in the face of the NBC’s stated reasons for embarking on the far-reaching measures. During an interaction with journalists in Abuja last week, Salihu disclosed that while other local Satellite operators like FSTV and Trend TV had invested about $20million each to acquire licenses and infrastructure development, the exclusivity rights enjoyed by DSTV has continued to keep them (the indigeneous satellite TV firms) out of business.
Salihu further disclosed that NBC’s decision to review DTH operations in the country was predicated upon a plethora of complaints which the commission said it had received from satellite television subscribers and other television broadcast operators, on the dangers posed by creating a monopoly in the system, in a free and open economy.
In the recent past, the satellite broadcast industry has somewhat been polarised by the inequality in the system. In one camp are indigenous DTH providers who campaign relentlessly for the alteration of the status quo, which has over the years ensured that Multichoice/DSTV enjoy exclusivity rights for the transmission of choice foreign channels in the country. In the other camp is Multichoice/DSTV, which has stridently worked at bestriding the industry like a colossus, unchallenged.
Instructively, Multichoice’s alleged submission to the Independent Communication Authority of South Africa (ICASA), last year made no pretence about the company’s desire to remain an octopus in the industry – whether in Nigeria or in other African country. In the said position paper, Multichoice reportedly enumerated merits derivable from exclusivity and monopoly in the industry. The paper reportedly reads in parts: “Ultimately, reliance on exclusive programming enhances the contribution of South Africa’s subscription broadcasting services to the national economy and to South Africa’s ability to remain the hub of broadcasting for Africa...Any attempt to undermine the principle of exclusivity will have the converse consequences: less investment, lower quality and less content and ultimately a decrease in South Africa’s role in African broadcasting.”
Indigenous DTH providers on the other hand have stridently argued that the exclusionists and monopolistic tendencies of DSTV have largely strangulated them (indigenous DTH providers).
In a chat with  The Source, Chris Kehinde Nwandu, Public Relations Consultant to Trend TV/CTL regretted that as a result of DSTV’s monopoly, indigenous DTH providers such as DISC Engineering, TITV, FSTV, et cetera have all gone under after sinking in millions of dollars in the industry. Nwandu also revealed that Trend TV has since November last year been off air due to the same problem. He decried a situation whereby foreigners bestride the industry unchallenged. Nwandu: “It is an insult for foreigners to come here and dictate to us...we want to be able to also have the right to transmit these choice international channels which DSTV is monopolising.”
In taking his fight against DSTV’s alleged monopoly in the industry to the National Assembly, FSTV boss, Fayimubo in a memorandum argued that the continued domination of DTH market by one service provider would reduce indigenous satellite companies to peripheral players. Fayimubo further stated that other DTH providers which have no right to access international TV stations would become inconsequential pawns in the chessboard because there would be nothing to offer those who need better service.
The FSTV boss submitted that “the fact that new entrants into the satellite television sub-sector in the country are indigenous, while Multichoice is foreign imposes an utmost need to evolve a comprehensive and pragmatic body of policies that would provide an enabling and conducive environment for meaningful growth of the indigenous outfits.”
The FSTV boss thus informed the National Assembly that “the fore-going is the veritable representation of the consensus of the general public and this consensus can certainly not be disregarded, considering their vital role as consumers.”
With the Federal Government’s breaking of DSTV’s monopoly, how far indigenous DTH operators can go in effectively giving DSTV a robust challenge– especially against the backdrop of the fact that the South African firm is already firmly entrenched in the industry– remains to be seen. Really? even as the DSTV official who spoke to The Source insisted that indigenous companies are only talking of monopoly now because they are envious of DSTV’s success over the years and so now want to come into the industry to mess it up.