I have criticised DSTV’s August 03 press release, which I consider ill-advised and ill-timed. However, there are exceptions.
First, I don’t think DSTV or any other company should be forced to reduce its prices. Such a concession may create another wave of interventionism, which may adversely impact the financial position and competitiveness of certain kinds of businesses. In my view, the NCA’s regulatory purview is technical and not financial. This whole practice of forcing companies to reduce their prices may spill in our faces. It is important to note that despite these improved macroeconomic variables, the government has announced a 15–30% increment in some services it offers. How can one approbate and reprobate at the same time?
I would have loved to see how DSTV’s refusal to change prices had affected its numbers by way of subscriptions and patronage. My argument is simple: if people think they are not getting value for money, they should opt out. The services that DSTV provides could be said to be a luxury rather than a need. The forces of the market and competition should drive the conversation rather than government intervention. Threatening DSTV with licence revocation over prices is an overkill. That’s quite preposterous.
In my estimation, the fact that DSTV has been a dominant player with little to no towering competitor speaks volumes about the barrier to entry and perhaps the high cost of managing such operations in Ghana. That should not be lost on us. I think it will be overtly reductionist to make a comparative analysis with Nigeria without paying attention to other variables, including the number of active subscribers, taxes, the intensity of competition, the cost of electricity, and others.
There must be a point where businesses are able to nurture a political voice and to advocate for themselves. They cannot be reduced to, or be at the mercy of, the politicians, and that could be another way DSTV should be perceived.
It is sad that entrenched positions have reduced a rather technical and top-level conversation to social media rants and buzz, where populist sentiments are being canvassed against a company that has served Ghana, paid taxes, employed people, and contributed to Ghana’s economy for three decades.
By Samuel Boateng Osarfo