MultiChoice Uganda, the dominant player in the pay TV market in Uganda, has faced public criticism after announcing that it will increase the prices for its television bouquets for the second time in eight months, starting April 1, 2023. The company cited an increase in the costs of doing business as the reason for the increase.
The announcement sparked a social media firestorm with some people calling for a boycott of the company’s services. The Uganda Communications Commission (UCC), the regulator of the market, also weighed in on the MultiChoice issue, noting that it promotes cost-oriented pricing by licensed providers, balancing the sustainable provision of quality services and affordability.
The recent re-organization within MultiChoice coincided with the global economic downturn that impacted the costs of supplies to operations. However, MultiChoice’s decision to increase prices twice within eight months points to the company’s exploitation of the lack of a competition law.
Uganda has recently tabled the Competition Bill 2022 before parliament, which aims to ensure fair and efficient market conduct and prevent anti-competitive agreements and abuse of dominant position, among other objectives. Parliament’s committee on tourism, trade, and industry is scrutinizing the bill, but there is no indication of when they will be done.
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