CFO: Marpin price increase needed to offset costs in improving services

Calvin Patrick

Rising costs associated with improving its products and services are responsible for the $20 price hike in Marpin 2k4’s cable television service, Chief Financial Officer (CFO) Calvin Patrick has said.

Patrick told a DBS radio broadcast this morning that the company has absorbed costs over time and is now at a point where it needs to “address it”.

“This is not just an improvement in quality of service but also range of service,” Patrick added.

According to the Marpin 2k4 CFO, even if customers opt to switch service providers the inevitable fact remains that the prices there too will rise due to the technological advancements of the market. The only difference, he indicated, is that Marpin 2k4 has employed these advancements in providing quality service ahead of competitors.

“Over the last 18 months the company has been doing a lot of work in terms of building new plant and introducing new services. We have completely revamped the internet service that we have been giving. It’s completely modern. We have the highest speeds on the island,” Patrick said.

However, in an exclusive interview with Dominica News Online, published on the weekend, SAT’s Managing Director Marlon Alexander said his company will not increase their prices anytime soon.

“No increase in rates for now! SAT will be going in a different direction. I cannot divulge [what it is] as yet but there will be no increases in rates for SAT customers… what we are providing at the present moment is for “X” amount of channels is what our customers will be paying,” Alexander said.

“The programming has escalated over the last couple years …. We’ve been absorbing costs as well but there are different directions you can go into to cut back,” Alexander added.

Marpin, which has been in service since the early 1980s, has not increased its prices since 1994. The company changed management in March of 2009 and has undergone a noticeable change in its products and services.

The company’s CFO entertained burning questions from the listening public, some of whom have openly pledged to switch cable service providers and others who questioned channel/network stability and the seeming lack of variety.

“Marpin is keen to deliver a good service,” he assured, while urging customers to remain with the company in spite of the price hike. “We are confident that we have a platform that can deliver these services and we want to do it.”

Patrick however admitted that Marpin 2k4 “will probably lose a few customers” but has “weighed this very carefully and we are where we are…”

He said the company has examined all options of reducing their own cost before increasing prices.

Minister responsible for Telecommunications Ambrose George has called for a dialogue between government and the Marpin 2k4 before the implementation of the new price structure. He said the company does not need government’s approval to raise its prices but good corporate citizenship mandates that they discuss the matter with the administration before implementation.

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19 Comments

  1. stupes
    September 15, 2010

    i doh even worry with all you dat dere running all you mouth on DNO. I know all you going to just shut up and pay the $20.00 extra. $150 to switch to SAT against a $20.00….all you dominicans just like to run all you mouth…stupes.

  2. well.
    September 14, 2010

    you all forget cable TV is a luxury. if you can’t afford it you live without it. now if it were water or basic food items or electricity than you all would have a point. you not going to die without your cable.

  3. You Know
    September 14, 2010

    Everyone’s there saying they’re not in favor of what Marpin is doing, but how many will really disconnect come end of September and either stay without cable, or switch. I doubt that many. Dominicans talk a lot, but never act of the things that supposedly matter.

  4. Hmmmm
    September 14, 2010

    @ Patat

    You making lots of sense…I was just thinking of applying for Marpin internet until I found out about the rise in cost of cable tv. I have no real need for a phone at my home but if they offered packages like that I would definitely put a phone at home just for emergency sake (cannot always top up that darn cell).

  5. ohh
    September 14, 2010

    @T. Winston:

    We have the technology to stream our TV channels ?

  6. T. Winston
    September 14, 2010

    Oh I forgot to say

    We have the technology to stream our TV channels (thing about it dummies)

  7. T. Winston
    September 14, 2010

    All I have is P!NG but try and raise that and you can keep your services cuz when it raining nothing working right.

    I understand the business aspect of raising prices but why would you raise prices with the same poor delivery? We have alternatives and a new one is coming soon. Play games Marpin and your Business shall fall

  8. I so glad for Marpin
    September 14, 2010

    National Telecommunications Regulatory Commission sleeping? Where are they? I’m not hearing their voice behind this burning issue. Forget about Ambrose George. NTRC needs to come in and investigate Marpin 2K4’s claims.

    When you take into consideration the average income earner in Dominica with their sky-rocketing mortgages, rent, utilities, food to buy, plus car loans for some and bus fare for the rest of us, not to mention all the little incidentals that drain our cash every month, like hair-cuts for men, shaves and buying things like sanitary napkins for women; school fees and lessons fees for our children….I’d like Mr. Patrick to give me an idea of where else he thinks we can squeeze out an extra 20 dollars…Let’s get real….I know alot of us reading this article our hearts are pounding with anxiety, because many of us are already ducking Courts and Astaphans and MVB and Roseau Credit Union.

    Not one more penny, Mr. Patrick, NOT ONE MORE PENNY!!!

  9. Anonymous
    September 13, 2010

    Yess iii…Them people there doe easy nuh boy…Plenty people going to switch to SAT but after couple of months SAT gan go up too……Boyy Dominica really getting hard eh,,,,,I mean overs is no different but basic things like food and ..t you have to be struggling to buy….I love you Dominica but time for me to try and migrate wi pal….TRUST ME………….

  10. customer
    September 13, 2010

    The same customers who were deprived of Matt’s TV programme because the villas were going to be shown on the Wednesday on MARPIN 2K4 TV programme, are the same people who MARPIN 2k4 and DSS are asking now to pay an increase of $20.00. The two issues are related because the programme was beginning to be loved by Dominicans and was a good initiative by the TV Co. to have that programme with Matt talking on important National issues. Dominicans expressed concerns and may have led more people to be vexed about the sudden big increase, while at the same time a good programme was cut off from them. Let us be frank in this place and call a spade a spade. The big increase may not be too much, but at this time people are strapped for cash. Things are hard.

  11. Margeret Rose
    September 13, 2010

    Marpin2k4 is like LIAT they dere so they don’t care, yes prices have to go up but why by so much, the service you get from Marpin is pure crap, the lighting is so bad God only knows how they can get that so wrong, sometime the presenter is black then blue then red then white bloody hell they are the worst thing to happen to TV in the world, and they want me to pay more for that crap hell no, I will not pay $20.00 extra not at all, I have no problems if the put the price up but not by so much and the service will still be crap hell no, see what happen when you let outsiders in your home business, theses Americans bought into Marpin now they crying Dear Lord help tell the American to give us back Marpin and go get rich somewhere else pls.

  12. King of Dominica
    September 13, 2010

    That’s not good for we Dominicans. it seems like marpin providing for the wealthy persons of Dominica, what about those who can’t afford to pay 80 dollars. thats selfish. cater for only one set.
    i think for those who can’t afford Marpin. SAT is Where It AT…… so you would not have to stand and look in window for a dam played 20 times over movie.

  13. Patat
    September 13, 2010

    As I have said before, Marpin’s core business and revenue generating activity is Cable TV. I am not interested in your phone and internet services. Why should I be subsidizing your unprofitable phone and internet services for?

    If you have done your market research and SWOT analysis and you all are not making money then something is wrong with your findings. You all ASSumed too many things that were either never there or still not there.

    Up today Marpin does not have a five or ten minute infomercial about its other services on none of its channels!!!!!!

    My suggestion to Marpin is to come up with packages at competitive prices for you all three services.

    Say for example for EC$100.00 a month one can get Cable TV and 150 minutes of phone and 100 minutes of internet. That could be called the Maprin Lite services. Some people would just want to have a phone for their children to call them to see if they are ok and just to send and receive e-mails without much surfing

    Marpin Gold would see Cable TV, unlimited phone use, and Internet of 1 GB for $170.00

    Marpin Platinum priced at $300, and Marping Super Platinum at EC$450.00

    These bundling of services would be a lot more attractive with a 60 day credit period. Now that will sell out there and give Lime and Digi Goosebumps

  14. Piper
    September 13, 2010

    Why doesn’t government butt out and let these guys run the business. Whenever political expediency mixes with business decisions, they outcomes are never good.

    DSS and their partner should employ a solid management team to run the business and judge them on the results of their decisions.

  15. shatta
    September 13, 2010

    MARPIN 2K4 TOO VOLEH ,FIRE PON DI WICKED

  16. saphire
    September 13, 2010

    What improvement?? Man stop talking nonsense!! Marpin is the worst thing that ever happened to a television set. Every month end there are at least six (6) of the best among the crapy channels you all provide. Must I also mention how long it takes for you all to respond to a fault and still bill the client while the service is out?? You all have searched the globe and found the worst channels (the new ones) to introduce. I mean come on………………if there is one, Marpin is going straight to cable TV hell!!!!!!!!!!!!!!
    An extremely dissatisfied customer who won’t be paying $80.00 of my hard earned dollars for more nonsense!!!

  17. mouth of the south
    September 13, 2010

    hhhmmmm weh papa,,, malaway like me will not watch t.v again nah pal,,,, well its back to standing in the neighbours window,,,,, i get the feeling s.a.t going n raise also,,, they jus buying time lol

  18. LadyJ
    September 13, 2010

    Non-sense, total garbage. I will go to SAT.

  19. LionPaw
    September 13, 2010

    Man Marpin is not a monopoly. Why do they need to discuss with government? If customers don’t think they are getting VALUE FOR MONEY, then they switch.

    Government deregulated cable TV and allowed competition so that the consumer would have choices. So let them choose.

    Some dumb politician always puts in his two cents, looking for cheap political mileage.

    If government wants to be useful why don’t they revisit the idea of terrestrial(broadcast) TV service. We had DBS TV up until hurricane David.

    It’s so sad that if citizens need to view local TV news and other local programming, they are forced to pay for cable service. I mean there is a significant section of our population that is on very limited income. We are probably the only country in the Caribbean without National TV service.

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