Digitisation: Signal Distributor Drags FG to Court, Demands N1.2tn Damages
Adebiyi Adedapo Details have emerged on why Nigeria’s expected transition from analogue to digital broadcasting system, come June 2015, will not be realised.
One of the major signal distribution companies, Pinnacle Communications Limited, had dragged the federal government before a Federal High Court sitting in Abuja, over an alleged bridge of contractual agreement.
Meanwhile, the Broadcasting Organisation of Nigeria (BON) and the National Broadcasting Commission (NBC) in a joint press briefing last week, declared that the switchover would not be realised due to the country’s new political environment.
But, contained in the court process, suit number FHC/ABJ/ CS/897/2014, the contractual agreement provides that only two signal distributors are to be licensed at the initial stage, and that market conditions could require licensing of additional signal distributors.
The signal distribution company (Pinnacle Communications Limited) which won a carrier license made available by the federal government alleged that NBC as the regulatory agency of the government, rescinded on the agreement, as contained the federal government white paper on transition from analogue to digital terrestrial broadcasting.
Pinnacle also claimed that NBC had represented that there was no other digital terrestrial signal distributors in Nigeria apart from Nigeria Television Authority (NTA), and showcased Pinnacle Communications as the second and only other terrestrial signal distributor in Nigeria.
NBC allegedly contravened this provision as it issued licenses to two other signal distribution companies including Details Nigeria Limited, under the name and style of GoTV and MTS Communications.
Pinnacle communications is however seeking the court to grant an order of perpetual injunction, restraining GoTv, NTA-Star Network and MTS Communications Limited from engaging in the business of signal distribution under the current licensing framework.
Executive Director of Pinnacle Communications, Mr. Dipo Onifade, during an interacting with journalists at the weekend in Abuja, explained reasons why his company would not begin signal distribution.
Onifade disclosed that Nigeria was not anywhere near commencement of digital switchover, noting that the launch was designed to deceive Nigerians.
He added that Pinnacle Communications would not participate in the transmission from analogue to digital broadcasting, until the government honours terms and conditions as stated in the white paper.
According to Onifade, the schemed failure of signal distribution is giving DSTV Multichoice an upper hand in content distribution through satellite, which is by far more expensive than terrestrial distribution.
“Nigerians have been shortchanged and played into the hands of foreign media companies at the detriment of indigenous broadcasters. NBC rather than use the whitepaper actually discarded it. It awarded what it called a content aggregator license to a company that had lost at the signal distribution license process. There was no procedure or public notification that a content aggregator license will be issued,” he said.
Pinnacle Communications is alleging that NBC granted GoTV an undue advantage, by awarding the company a license as a content producer and signal distributor, as against the position of the white paper, which stipulated that a content producer cannot transmit digital television signals to households.
Pinnacle is praying the court for an order, setting aside the licenses awarded to MTS Communications Limited, Details Nigeria Limited (GoTV) and NTA-Star Network Limited, by the NBC without due process.
Also, Pinnacle Communications is seeking an order of perpetual injunction, restraining MTS communications, GoTV and Startimes or their subsidiaries from deploying or rolling out or distribute any terrestrial digital signals in Nigeria.
The company is demanding the sum of N1, 274, 076 as damages, being loss of earnings and profits arising from the breaches by NBC.
It is also seeking refund of the sum of N618, 750, being fee paid to the NBC for the purported terrestrial digital signal license, the sum of N85.3 million, being expenses incurred between March 20 and November 14, 2014, and the sum of N10 million as damages for fraudulent manipulation of an open bidding process.
Listed as defendants are the national Broadcasting Commission (NBC), Director General of the Commission, Mr. Emeka Mba, Attorney General of the Federation, Muhammed Bello Adoke, MTS Communications Limited, Details Nigeria Limited(GoTV) and NTA-Star Network Limited.