ANGELA CHISHIMBA, Lusaka
MULTICHOICE has announced an upward adjustment of 30 percent on the current DStv and GOtv subscription fees in Zambia, effective November 8, 2015.
In a statement issued yesterday, MultiChoice public relations manager Mwiika Malindima said the increase is necessitated by the fluctuating foreign exchange rates.
“The price adjustment is necessary given that the costs of the provision of DStv and GOtv services in Zambia are predominantly, United States (US) dollar-based. This is consistent with economic trends in the country with other providers of imported services [whose costs are also US dollar-based] responding similarly,” Mr Malindima said.
He said in determining its price increase, MultiChoice take into account many other factors, including the impact on the subscriber and current inflation.
“In keeping with current economic trends, MultiChoice would also like to advise that it may in the interim have to consider a quarterly review of its pricing,” Mr Malindima said.
From April 1, 2015, until now, the Zambian Kwacha has fluctuated from just below K7.70 to K12.39 to the dollar, averaging a 61 percent increase.
Mr Malindima said with the price increase being pegged at 30 percent, it means MultiChoice’s increase is still well below the inflation rate, and that the business has over this time absorbed the foreign exchange difference for the subscriber.
“As a consequence, MultiChoice will not recover the full extent of losses arising from the devaluation of the Kwacha. As the leading video entertainment service provider, we strive to continuously improve our services and product offering by providing our subscribers with the best television experience, supported by great subscriber management services,” he said.