Broadcasting
Licensing of Web TV, Radio Caught in Cross Fire
The recent move by the federal government to license of online radio and television stations has sent emotions flying left and right.
While some welcomed the development; others expressed cautious optimism; but critics, said the move is inherently wrong, and can never be justified.
The proposed licensing of online radio and television stations, is part of the wide ranging reforms in the broadcasting industry approved by President Muhammadu Buhari.
Lai Mohammed, minister, Information and Culture, however insisted that “WebTVs and radio stations, including foreign broadcasters beaming signals into Nigeria, will be licensed because we must bring sanity into this industry.”
Nigeria may not be the first country to introduce the license scheme, but it may go down the history books as one which did not lay the foundation for licensing.
To some however, the move is commendable as it will sanitise the online space and check incendiary Web-broadcast sites fanning the embers of hate and division in Nigeria.
Online radio and television stations are the so-called over-the-top (OTT) services, which simply refers to deliveries of broadcast contents over the internet.
And for intents and purposes, Nigeria does have control over these contents and you cannot regulate or license what you don’t have control over.
WebTVs and radio stations are so pervasive and ubiquitous as data shows 71% of internet users also use OTT services.
It is even suspected that by 2022, 55.1 million people will no longer watch traditional pay TV.
In the telecommunications space, the Nigerian Communications Commission (NCC), is seriously under pressure on how and when to regulate OTT players, which have been described as a serious threat to traditional telecommunications operators.
Though, NCC has repeatedly claimed that it will not regulate technology, but stakeholders have called on NCC to as a matter of urgency look for ways to curb the growing influence of OTT players including Facebook, WhatsApp, Google, Wechat, Telegram, Viber, Skype, Imo, and others.
To compound the challenge, Ovum, an independent analyst and consultancy firm, revealed that global operators, Nigeria inclusive lost $386 billion over a period of six years (2012 – 2018), to the incursions made by the OTT players on operators.
Prof. Umar Danbatta, executive vice chairman, NCC, urged operators to restructure their business models, to boost their revenue, which is falling as a result of various challenges, including those of OTTs.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), OTT services in Nigeria have brought displacement effects on operators.
He said data showed that voice minutes have been declining due to impact of OTT; while VoIP has been increasing; OTT Data flux has been increasing as shown with the 2016 data, and telcos are losing money to this trend.
From his perspective, Chijioke Ezeh, national coordinator, Wireless Application Service Providers Association of Nigeria (WASPAN) said it will be a big problem for Nigeria to sign away data and digital opportunities, stressing that OTTs are milking the telecoms operators, vendors and the entire economy.
Competition and Consumer Protection Tribunal (CCPT) in Abuja has dismissed a class action suit filed by one Uche Diala and 961 other DStv and GOtv subscribers against MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC), citing lack of jurisdiction.
The suit challenged MultiChoice’s subscription price increases in November 2023 and May 2024, which the claimants described as arbitrary, exploitative, and unfair.
Diala and others sought to reverse the hikes and compel the company to adopt a more flexible billing model, such as a pay-as-you-view system used in other countries like South Africa.
They also accused MultiChoice of price discrimination against Nigerian consumers.
MultiChoice, through its counsel, raised a preliminary objection, arguing that pricing decisions do not fall within the tribunal’s remit and that the suit was improperly filed as a class action without first seeking the tribunal’s leave.
In its ruling on Thursday, the tribunal’s three-member panel led by Justice Thomas Okosun held that the core issues raised, which were pricing and tariff regulation, fall under the exclusive purview of the executive branch, particularly the President, as stipulated under the Price Control Act.
“The issue of price regulation is a matter that falls within the exclusive purview of the President of the Federal Republic of Nigeria,” Okosun stated.
While the tribunal acknowledged it holds both original and appellate jurisdiction under the FCCPC Act, it emphasized that such authority does not cover general price control unless abuse of market dominance is established—a point the claimants failed to prove.
On the procedural matter of filing a class action without prior approval, the tribunal noted that although it is ideal to obtain leave, failure to do so was not fatal in this instance since the claimants demonstrated a shared grievance and common interest.
Nonetheless, the tribunal upheld MultiChoice’s objection, ruling that it lacked jurisdiction to adjudicate the matter.
“The preliminary objection of the first defendant succeeds,” the panel held. “This suit is accordingly struck out for want of jurisdiction.”
This ruling follows a similar outcome on May 8, when a Federal High Court in Abuja upheld MultiChoice’s price increases after the company sued the FCCPC.
In that judgment, Justice James Omotoso declared that the FCCPC lacked the authority to fix or suspend subscription rates.
MultiChoice Nigeria has slashed the price of its DStv decoder from N20,000 to N10,000, representing a 50 percent drop, in a aim at attracting attract more customers and curb declining subscriptions.
The campaign, titled “We’ve Got You,” was launched on June 16 and will continue until July 31.
Also, as part of its efforts to ease economic pressure on households and improve access to digital TV services, the campaign offers a free upgrade for both active and returning customers.
Speaking on the campaign, John Ugbe, chief executive officer (CEO) of MultiChoice Nigeria, said the initiative reflects the company’s commitment to rewarding loyalty and enhancing daily viewing experiences.
“We want to ensure our customers feel appreciated and have access to the best entertainment every day,” Ugbe said.
“The ‘We’veGot You’ campaign is about making premium content more accessible and showing that DStv offers something for everyone, not just football fans.
“By repositioning itself as a platform for daily value, DStv aims to encourage content discovery across a wider array of genres, including movies, drama, kids’ programming, and news.
“This means more channels, more shows, and more reasons to tune in every day.”
The development comes amid MultiChoice Nigeria’s legal battle with the Federal Competition and Consumer Protection Commission (FCCPC) over price hike.
Federal Competition and Consumer Protection Commission (FCCPC) will, on Oct. 7, arraigned the Chief Executive Officer (CEO) of Qatar Airways, Mr Temi Birdzell, alongside the company and its top officers, over allegations bordering on breach of FCCPC Act, 2018.
The defendants will be arraigned before Justice James Omotosho of the Federal High Court in Abuja.
Others to be arraigned with Birdzell are Stella Ihediwa, the Account Manager of the airline; Kennedy Chirchir, the Country Manager and Eva Ojeje, who is the Sales Manager of the company.
Although the arraignment was scheduled for Tuesday, the matter could not proceed.
Upon resumed hearing, none of the defendants was in court.
When the matter was called on Tuesday, none of the defendants was in court due to improper service of the court documents, including the hearing notice, on them.
FCCPC.’s lawyer, Chizenum Nsitem, told the court of their inability to serve four of the defendants, although the company was served.
Nsitem then sought an adjournment to enable them do the needful and the judge adjourned the matter until Oct. 7 for the defendants to take their plea.
The News Agency of Nigeria (NAN) reports that the commission, in the charge marked: FHC/ABJ/CR/200/2025, dragged Qatar Airways, Birdzell, Ihediwa, Chirchir and Ojeje to court as 1st to 5th defendants respectively.
FCCPC, in the application dated May 26 but filed May 27, had preferred a two-count charge against the defendants.
The defendants were alleged to have failed to appear before FCCPC in compliance with a lawful summons of the commission dated Sept. 6, 2024, and thereby committed an offence contrary to and punishable under Section 33 (3) of the Federal Competition and Consumer Protection (FCCPC) Act, 2018.
They were also accused to have on Sept. 18, 2024, intentionally withheld the production of documents in compliance wth a lawful summons of the commission, thereby committed an offence contrary to and punishable under Section 111 of FCCP Act, 2018.
In count three, they were alleged to have on Sept. 18, 2024, engaged in the contravention of the consumer rights, thereby committed an offence contrary to Section 124(1) and punishable under Section 155 of the same Act.
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