* They want their tariffs to be imposed unchecked
* The current matter was not as a result of MACRA rejecting MultiChoice tariff request made on June 3, 2022
* But its conduct to proceed to implement tariffs without approval from the Authority
* In the previous years up to June 2022, the service provider has been submitting to all its tariff requests to seek approval
Analysis by Duncan Mlanjira
From the information we have gathered — on the circumstances that led to the impasse between MultiChoice Malawi and Malawi Communications Regulatory Authority (MACRA) — it is a case where essentially MultiChoice tried to forced the regulator to abdicate from its tariff regulation statutory consumer protection mandate as they wanted their tariffs to be imposed unchecked.
Advertisement
Our investigation show that the current matter was not as a result of MACRA rejecting MultiChoice tariff request made on June 3, 2022, but its conduct to proceed to implement tariffs without approval from the Authority.
It should also be noted that MultiChoice is the one that took MACRA to Court in the first place and that it unilaterally decided to withdraw its DStv services after the Court decided against it on August 8, 2023.
We, thus highlight the events that led to MultiChoice Africa to withdraw its DStv service ahead of MACRA’s Wednesday meeting with Parliamentary Committee on Media, Information & Communications — which has summoned the regulator to what it describes as a round table discussion to fully understand the circumstances that led the voluntary withdrawal.
First is that MultiChoice’s broadcasting service provision content licence was renewed on July 24, 2020 for a period of 7 years to provide Subscriber Management Services (SMS), which was to offer five DStv bouquets/packages from high to low end — Premium; Compact Plus; Compact; Family; and Access.
The Licence, together with the Communications Act, sets the terms and conditions to be implemented by all service providers including MultiChoice Malawi and in the previous years up to June 2022, the service provider has been submitting to all its tariff requests to seek approval.
The current impasse between MACRA and MultiChoice is not as a result of the Authority rejecting the tariff request made on June 3, 2022 but the conduct of MultiChoice to proceed to implement tariffs without approval.
During the said period, GOtv services tariffs were deemed approved as per its licence conditions. On June 3, 2022 MultiChoice submitted a tariff request to MACRA for DStv and GOtv services but on June 21, 2022, the company made a public announcement to adjust tariffs before MACRA Technical Committee convened.
GOtv tariff adjustment was approved
On June 24, 2022 MACRA’s Technical Committee, which approves tariff requests met but because of MultiChoice’s conduct in announcing the tariff adjustment before approval, the request was not deliberated as the company had already gone to court on the same.”
On June 28, 2022, MACRA notified MultiChoice of a preliminary finding of breach of section 74(1) of the Communications Act and Clause 11.2 of its SMS licence — more specifically, Clause 11.2 of the SMS licence for implementing DStv tariff adjustments without prior approval from the Authority.
The hearing of the case was delayed to pave the way for the conclusion of the court case that MultiChoice filed against MACRA and the case was dismissed by the High Court Lilongwe District Registry on July 25 2022.
On 28th November 2022, MultiChoice was heard before MACRA’s Legal and Administration Committee which recommended to the Board to make a final finding of breach, which was upheld by the Board on December 22, 2022.
A fine of K10 million was imposed on MultiChoice with a warning “to cease and desist from implementing the revised and unapproved tariff structure, and refund the customers the difference between the unapproved tariffs and the approved tariffs”.
Advertisement
Come 2023 — specifically on January 3 — MultiChoice was granted leave to commence judicial review proceedings against MACRA and obtained an injunction to prevent MACRA from implementing the decision.
From January 17-27, MultiChoice engaged MACRA for an amicable settlement of the court case but the negotiations failed due to the insistence of MultiChoice to still not require prior tariff approval before implementing tariffs.
On June 14, 2023, MACRA Board met MultiChoice on possible settlement out of court and on July 11, the Authority’s Board approved the recommendation to allow MultiChoice to notify the Authority on tariff adjustments — but MACRA should reserve the right to intervene where the proposed tariff implementation showed unfairness.
Then on July 17, 2023 MultiChoice notified MACRA of the tariff increase on DSTV services effective August 1, 2023, which prompted the regulator to obtain an injunction from High Court restraining the service provider from implementing the DStv tariffs — again stressing without prior approval from MACRA.
MultiChoice went further to obtain a temporary order to stay on July 31 which allow it to rectify the system which was already set to bill using the new tariffs. The order was for 4 days until August 3 and on the following day, August 4, MultiChoice applied to extend the stay order until August 7 and the Court allowed it.
On August 8th, a hearing of both parties on the injunction was held and the High Court upheld the injunction obtained by MACRA and vacated the stay order obtained by MultiChoice.
Thus, on the same day, MultiChoice Malawi and MultiChoice Africa announced the withdrawal of DStv services in Malawi ahead of the Judicial Review hearing scheduled for August 25, 2023.
Advertisement