10 October 2024
The Nigerian Communications Commission (NCC) has unveiled plans to sanction Starlink for increasing its subscription price in Nigeria without approval from the regulator.
At the start of October, Starlink increased monthly subscription for its internet service from N38,000 to N75,000. For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.
Reuben Muoka, the Commission’s director of Public Affairs, issued a statement on Tuesday and said the NCC had not approved Starlink’s price increment: “the decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission. We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.”
This follows just days after stakeholders accused the NCC of double standards for allowing price hikes while preventing local operators from doing the same.
According to Muoka, Starlink contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs. Section 108 of the Nigerian Communications Act 2003 empowers the commission to oversee telecom tariffs, while Section 111 enables NCC to impose penalties on license holders who exceed approved rates.
“The Commission will therefore take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry,” said Muoka.
Starlink explained the local price increases in Nigeria by citing ‘excessive inflation’ as the reason. Nigeria's headline inflation rate eased to 33.4% in July, slowing for the first time in almost two years.
