Signal distributor Pinnacle Communications has filed a lawsuit against the country’s National Broadcasting Commission (NBC) for some NGN 1.2 trillion over what it says is a breach of a contract. The news comes on the heels of concerns that the country’s broadcasting sector is remaining slow to change with newer technologies.
According to Pinnacle, the deal between the companies that “only two signal distributors were to be licensed at the initial stage.”
Pinnacle believes that this dispute could be avoided had NBC not allowed others to enter the market so quickly.
Pinnacle argued that NBC had represented that there was no other distributors in the country apart from Nigeria Television Authority (NTA) and Pinnacle Communications.
NBC then allegedly issued licenses to two other distributors, specifically Details Nigeria under the name and style of GoTV, and MTS Communications.
The lawsuit could threaten the overall connectivity in the country and faces concerns from experts who say Pinnacle may resort to a form of hostage holding if the issues are not resolved in a timely and equitable manner.