THISDAY

Digitisati­on: Signal Distributo­r Drags FG to Court, Demands N1.2tn Damages

- In Abuja

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a carrier license made available by the federal government alleged that NBC as the regulatory agency of the government, rescinded on the agreement, as contained the federal government white paper on transition from analogue to digital terrestria­l broadcasti­ng.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.

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