In an imperfect market where demand and supply have a massive imbalance, regulation that requires a carrier in such a market to not allow data expiration on their monthly data plan (no contract, you charge and it expires after 30 days), will force the company to adjust its prices.
Suppose it costs TelcoBBA $100 to produce 100 GB of data and it has ten customers. According to the regulations, he will set the price of this product in several ways. Let’s look at the options:
Option A: Data cannot expire once purchased by users. Since this data would be used since the calendar was eliminated, TelcoBBA will likely increase prices for each of these 10 customers, regardless of their income bracket. In other words, through the various 1GB, 3GB, and 10GB plans that may be available, the company will go for the killer since under any condition, once sold, it has to service those 100GB dollars.
Registration for the Tekedia Mini-MBA edition 9 (Sept. 12 – Dec. 3, 2022) is underway. register here. The cost is N60,000 or $140 for the 12 week program. Beat the early risers for free books and other bonuses.
Option B: Data may expire after being purchased. Here, TelcoBBA will look at statistical data to see how many of those purchases expire over time. If say only 70% are using their data because it is expiring, that has “saved” 30GB. If so, that may reduce some customers’ data plans because some people have paid and will never use it.
This brings me to MultiChoice (owners of the DSTV and GOtv brands) and its stakeholders: “MultiChoice Nigeria, a pioneering pay-TV service provider, along with other stakeholders in the broadcast industry, have rejected a pay-per-view pay-TV proposal put forward by lawmakers. If you asked them to use Pay Per View (PPV), would you force them to treat Zee World and European Champions League hours at the same rate?
Indeed, you can do PPV in the US for $14 an hour, but at a major boxing event, an hour can cost $1,200. PPV is dynamic and never think that means splitting your 30 day DStv plan by 30 days and you pay per minute you want. No question unless DStv is requalified as a charity!
MultiChoice (DStv, GOtv), stakeholders reject pay-per-view proposed by Nigerian lawmakers
1. Advance your career, manage your business better with Tekedia Mini-MBA (September 12 – December 3, 2022): The cost is 60,000 Naira ($140). Click and register here.
2. Click and register for Tekedia Startup Masterclass and master the business secrets of unicorn startup. The cost is 180,000 naira ($400).
3. Click to join Tekedia Capital Syndicate and own one of the best startups in Africa with a minimum investment of $10,000.