Seun, the issue here is that of monopoly. Even the most liberalized, market-driven economies, the moment a company or product is a de-facto monopoly, it is regulated strictly by the Government. In the past, the American Government broke up AT&T into Baby Bells because it was a monopoly. The travails of Microsoft in the EU stems from its monopoly of OS market. DSTV used its monopoly position to impose sky-high prices on hapless customers while paying peanuts to Nigerian workers in its employ. MTN did the same. The only difference is that MTN pays good salaries. In business such predatory behavior is perfectly acceptable and in fact should be a coporate goal. Regarding the regret by Multichoice official for not bribing NBC staff to get protection, some heads in PR dept of Multichoice should roll for not doling out the bribes in good time to avert this slippry ground the company finds itself now. Multichoice should fight back by slashing prices, introduce a midway package between Premium and SuperSelect bouquets, introduce an exclusively Nollywood channel, a media blitz and of course make that PR contribution to NBC people (discreetly of course).

its amazing that we tend to criticise our government blindly atimes. what is happening here has some semblance to the microsoft monopoly issue. DSTV has offered over time good service to nigerians and they have made much money in doing so, but its the responsibility of the govt (even if there is a lot of politicking involved) to regulate (without outrightly interfering) in all that takes place in the country. they must ensure that the nigerian ppl get a good bargain. and i think that is what all this is about. we should encourage foreign companies and co to invest here and all that but they should not come here and rip us off, enough is enough!

@oluchi:
You are praising the government for breaking the "monopoly" and at the same time blaming Multichoice for not bribing government officials thereby preventing them from breaking the "monopoly". This makes no sense.

I'd rather deal with a private "monopoly" that became a "monopoly" through superior service and business sense than a monopoly or oligopoly created by unecessary government regulation. Private sector "monopolies" cannot throw you in jail for daring to compete with them or doing things differently, but governments do this all the time.

When the government goes after a "monopoly" it is basically punishing success. How will that help the economy? DSTV is not the only direct-to-home video company in Nigeria. They just happen to be the best. Businessmen who lack confidence in their ability to compete will always be tempted to run to the government.

About the Microsoft case, why is it that the Firefox browser was able to gain a lot of market share at the expense of Internet Explorer when Netscape was unable to do so even though the government was persecuting Microsoft? It is simply because Internet Explorer was better than Netscape Navigator but Firefox which came later was even better than Internet Explorer. Time spent on antitrust action is better spent developing your product!

Seun I am looking at the issue both as a DSTV customer and as a business person. Multichoice should have done all it takes to preserve their monopoly and the government must do all it takes to protect customers and at the same time allow innovativeness and risk-taking by companies to be adequately rewarded. De-facto monopolies must be regulated. Nowhere in the world is unfettered capitalism practiced.

By the way Firebox is a success because in addition to being a good product, it is free but most importantly, people are resentful and unhappy at the stranglehold Microsoft has over the OS market and by extension, browsers. If you think Firefox is a success solely because it is a good product, try selling it and see how far you will get.

In business undue government interference must be discouraged. Also monopolies must be broken-up or regulated. (NEPA aka PHCN and the National Electricity Commission NERC is a case in point)

At times like this, the greatest good for the greatest number of people must be the goal. Note that monopolies are not created necessarily by superior products but by getting to the market first, deep pockets (MTN vs Econet) and Government policiesand subsidies (Gazprom of Russia, chaebols of South Korea, keritsus of Japan).

By the way who says the Dstv is the best satellite broadcasting can be.

People use Firefox because it's fast, light and fairly compatible with Internet Explorer. They couldn't care less where it comes from. The problem wasn't with Microsoft as an entity, but with their terrible browser!!

Oluchy, your argument is going in every direction at once, like the way a slippery politician talks. One can't pin you down because your position is ambiguous. You are arguing for and against all possible opinions.

As such, I don't know what to say except this:
Government should not attempt to nullify the contracts between DSTV and its foreign content providers.

Seun to make my position very clear, I fully support what the Government did. As businessmen, Multichoice should also `"fight" back. As to being a politician, I wish I can be a consumate one. That is the fastest way to billions in any currency of your choice in this country OBJ vs Atiku)

Government is not attempting to nullify DSTV contracts but it severs itself from DSTV's stronghold. In other words, Nigeria does not want to be solely represented by DSTV. We are talking about an independent nation state and not a colony.

A country as big as Nigeria ought to use it's market size as a leverage in a capitalist world. It's stupid to allow us to be lumped together with smaller markets, as "Africa". The programmers know better than to lose the Naija market because of some dumb exclusive right to DSTV. The bottom line is that with our population we can afford to negotiate better deals for our people.

All over the world, free market types are failing to influence people despite the fact that we are right.

There is a channel that is FTA that is showing English Premiership live now receivable in Nigeria. Whoever wants to discard his DSTV are free to do so, they no longer have monopoly of showing english premiership in Nigeria.

I agree their are power in numbers. I am a white American who think the People of there country should have all the power. Is the Whites in Nigeria controlling it.

Dan

twinstaiye:

There is a channel that is FTA that is showing English Premiership live now receivable in Nigeria. Whoever wants to discard his DSTV are free to do so, they no longer have monopoly of showing english premiership in Nigeria.

What are you saying? Will FTA get to PH, Lagos, Abj, Calabar and every other major city? Will it host 3 or 4 live matches at once with beautiful analysis? Even with that DSTV is much more than sports. NO OTHER OPERATOR can compete with it in anyway(well except prices) Maybe the Government would ban MNet and Africa Magic soon.

I was sad when i heard the news. DSTV was doing so well - I dont know what all this monopoly thing is about with private sectors even with microsoft. If you can compete do so if not go and source for the government's help. I think that is how it goes this days. And i can cook up my conspiracy theory that its one of the competitors that went crying and lobying.

Anyway what can we do now but to look for alternatives. twinstaiye, how can i get FTA? Or will DSTV be allowed to show the premiership matches?

Twinstaiye

On what 'bird' is the channel -- and Orbital location, dish size etc?

hmmm