The Nigerian Communications Commission (NCC) has announced that it will take action against Elon Musk’s internet service company, Starlink, for increasing its subscription prices in Nigeria without the required approval. The NCC emphasized that Starlink’s price increase violated sections of the Nigerian Communications Act, 2003, and the conditions of its operating license.
The issue arose after reports surfaced accusing the NCC of showing double standards by allowing Starlink to raise its prices while preventing local telecom operators from adjusting their tariffs. In response, the NCC clarified that it had not approved Starlink’s price hike.
Starlink’s Price Hike Came as a Surprise
The NCC’s Director of Public Affairs, Dr. Reuben Muoka, expressed the regulator’s surprise over Starlink’s decision to raise prices. “The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka said. “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.”
He explained that this move by Starlink contravenes Sections 108 and 111 of the Nigerian Communications Act, which outlines the guidelines for tariff changes by telecommunications companies in Nigeria. “The Commission will take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry,” Muoka added.
Starlink’s Price Increase
Starlink recently raised its monthly subscription price for its internet services in Nigeria by 97%, moving from ₦38,000 to ₦75,000. Additionally, the price for the Starlink hardware kit for new customers was increased by 34%, going from ₦440,000 to ₦590,000. In a message to its Nigerian customers, Starlink cited “excessive inflation” as the reason for the sharp price increases.
Telecom Operators Seek Tariff Review
Local telecom companies in Nigeria, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have long been calling for a review of tariffs in response to rising inflation and other economic pressures. Despite these calls, the NCC and Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have urged operators to find innovative solutions to cope with inflation instead of raising prices.
Telecom operators argue that their industry is one of the few in Nigeria that has not adjusted prices, even though inflation and increased operating costs are affecting their businesses. However, the government remains firm in its stance against raising telecom tariffs, believing it could negatively impact consumers.
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- Starlink Raises Monthly Subscription in Nigeria by 97%, Kit Prices Soar
- Nigerian Communications Commission Withdraws Statement on Starlink Price Increase
NCC’s Regulatory Role
Under the Nigerian Communications Act of 2003, the NCC has the authority to regulate telecom tariffs. Section 108 of the Act specifically prohibits telecom companies from imposing tariffs without first receiving approval from the Commission. The law also gives the NCC the power to enforce penalties against companies that exceed approved tariff rates, as outlined in Section 111.
With the recent price increase by Starlink, the NCC plans to impose sanctions on the company for violating these regulations. The outcome of the enforcement action remains to be seen, but the case highlights the regulatory challenges in balancing consumer protection, fair competition, and business operations in Nigeria’s telecommunications sector.