MACRA asks MultiChoice Malawi to commence voluntary revocation of its license

* Also demands MultiChoice to settle K19,372,447.20 within 30 days from August 10 that it owes the Authority in unpaid licence fees

* To indicate the exact date when MultiChoice will cease its broadcasts into Malawi (shutdown date)

* To put measures in place to ensure MultiChoice’s smooth exit, especially regarding how refunds to consumers would be affected

By Duncan Mlanjira

MultiChoice Africa’s withdrawal of DStv service has come with it huge repercussions for MultiChoice Malawi as Malawi Communications Regulatory Authority (MACRA) is demanding the local service provider to commence voluntary revocation of its license.

MACRA also demands MultiChoice to settle K19,372,447.20 within 30 days from August 10 that it owes the Authority in unpaid licence fees

A statement from MACRA Director General, Daud Suleman dated Thursday, August 10 to MultiChoice Malawi’s Regulatory Manager, acknowledges the decision from parent company MultiChoice Africa of the withdrawal of DStv services due to the recent court injunction the regulatory authority was granted — restraining the digital entertainment service provider from implementing any changes or modifications to DStv services tariffs.

In his statement of withdrawal, MultiChoice Africa Holdings’ group executive-corporate affairs & stakeholder relations, Keabetswe Modimoeng maintained that MultiChoice Malawi “does not offer the DStv service to the public and, therefore, cannot set or adjust tariffs for this service, a point repeatedly made to MACRA”.

He added that as a result, the Court order handed down to MultiChoice Malawi “is incapable of being implemented by them but carries with it grave consequences for the directors and management of MultiChoice Malawi, including imprisonment”.

He further said as its supplier, MultiChoice Malawi is given “an increasingly adverse regulatory environment”, and it is “therefore, left with no option but to terminate the DStv service indefinitely”.

But MACRA stands by its mandate, emphasizing to MultiChoice Malawi that its commitment is to uphold the rule of law and enforce the provisions of the Communications Act as mandated to it.

“We have confidence in the court process to bring a fair resolution to this situation,” Suleman said. “In light of the service withdrawal, we expect MultiChoice Malawi to communicate with us regarding your next steps towards fulfilling your SMS license, which will be impacted by MultiChoice Africa’s withdrawal of its DSTV services.”

The steps MACRA is asking include:

1. Instructions to commence the voluntary revocation of MultiChoice Malawi license;

2. Indications on the exact date when MultiChoice will cease its broadcasts into Malawi (shutdown date);

3. Measures put in place to ensure MultiChoice’s smooth exit, especially regarding how refunds to consumers would be affected, especially those that would have paid beyond your shutdown date, as well as compensation to consumers for your proprietary DStv equipment that will become obsolete after the shutdown date;

4. To indicate the mechanisms put in place to ensure the appropriate disposal (take-back system) of the equipment with regard to e-waste as the equipment will become obsolete within Malawi;

5. Mechanisms put in place to ensure that DStv signals, from MultiChoice satellite, will not illegally use the Malawi spectrum after the shutdown date. The frequencies in question are 10970MHz 11010MHz, 11050MHz, 11090MHz, 11130MHz, 11170MHz;

6. The Authority shall conduct compliance testing of the above frequencies one day after the committed shutdown date, to ensure complete exit and that they are available for reallocation to any other interested operator;

7. Further, find hereto attached your latest financial statement indicating that you owe the Authority MK19,372,447.20 in unpaid licence fees. Please settle this amount within 30 days from the date herein; and

8. Lastly, MultiChoice to submit its audited statements for 2022 for the calculation of 2022 levies.

Suleman further advised MultiChoice that “once the voluntary revocation is completed, any broadcasting without an applicable license issued by the Authority is an offence under Section 187 of the Communications Act and that the Authority will not hesitate to take appropriate action against you in line with the Act against anyone who conducting illegal broadcasts”.

“The Authority will closely monitor the situation and take appropriate actions within our regulatory framework. The Authority’s goal remains to ensure a fair and transparent communication sector that protects consumer interests.”

In the statement of withdrawal, MultiChoice Africa’s Keabetswe Modimoeng advised customers to halt payment for the DStv service with immediate effect and that this who have already paid their new subscription for the DStv service will have those services honored until the current 30 day viewing cycle ends on or before September 10, 2023.

From Wednesday, August 9 2023, Modimoeng said “no new subscriptions or reconnections will be accepted”, while thanking customers “for their support over many years” and also to MultiChoice Malawi “for their professional conduct in supplying its services over as many years”.

The High Court of Malawi sitting in Lilongwe issued an order directing MultiChoice Malawi to comply with the order of injunction which was granted to MACRA on July 29th but MultiChoice sought court interventions until the Judge finally sided with MACRA.

Meanwhile, the Parliamentary Committee on Media, Information & Communications has summoned MACRA to what it describes as a round table discussion to fully understand the circumstances that led MultiChoice Africa to withdraw its DStv services.

The meeting is scheduled to take place on Wednesday, August 16 and this follows an announcement by Minister of Information & Digitalisation, Moses Kunkuyu, who said Government is intervening in the impasse between MACRA; MultiChoice Malawi and MultiChoice Africa Holdings.

Kunkuyu told the media that the impasse between the two sides does not favor any of them, saying if MultiChoice leaves, it will lose business and at the same time Malawians will lose entertainment, education and information they get from the company’s services — on top of jobs that may be lost including revenue that the government gets.

But while the government and Parliament seems to oppose MACRA’s solid resolve, South African and Zambian citizens are imploring on their governments to emulate the stance taken by MACRA, with Zambia alluding that what MultiChoice Africa Holdings has done is more like blackmail.

This description of blackmail has come to pass as Government and Parliament are up against its own agency, MACRA — a regulator which is mandated to look into the interests of the public.

Even in South Africa, where MultiChoice Africa generated from, its citizens are applauding the stance taken by MACRA, saying “DStv is overrated”.