What MultiChoice (DStv, GOtv) has in common with MTN, Glo, Airtel, 9Mobile on prices

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.

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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

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About Alma Ackerman

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