The Chief Executive Officer (CEO) of MultiChoice Nigeria, Mr. John Ugbe, has said that the Pay-As-You-Go (PAYG) billing model was not technically and commercially feasible in the pay television industry.

Ugbe stated this on Monday while making a presentation to the House of Representatives Ad Hoc Committee investigating the non-implementation of PAYG subscription model by satellite television service operators.

The Multichoice boss pointed out that Pay-Per-View (PPV) was often confused with PAYG, adding that the PAYG model used in the telecommunications sector was not the right fit for pay television.

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According to him, PAYG in telecommunications is a metered service that ensures consumers are billed only for the service they consume and not for a fixed period.

He explained further that PAYG was possible in the telecommunications industry because it relies on a two-way communication system, which enables operators to determine when a consumer is connected, the service consumed and duration of connection.

Ugbe stressed that satellite broadcasters, unlike telecommunications firms cannot offer pay television services the same way because satellite broadcasting is a one-way system and does not enable broadcasters to determine when a subscriber is connected and/or watching or what channel is being viewed.