The Nigerian Communications Commission (NCC) has announced plans to sanction Starlink, the internet company owned by Elon Musk, for increasing its subscription prices in Nigeria without prior approval from the regulatory body.
The decision follows a recent report by Nairametrics, which highlighted concerns from stakeholders accusing the NCC of allowing Starlink’s price hike while restricting local telecom providers from adjusting their own tariffs.
Responding to the report, the NCC’s Director of Public Affairs, Dr. Reuben Muoka, clarified that Starlink did not receive regulatory approval for its new pricing. He noted that the company’s actions violated Sections 108 and 111 of the Nigerian Communications Act of 2003, which governs tariff regulation for telecom services.
Unapproved Price Increase
Dr. Muoka expressed surprise at Starlink’s unilateral decision to raise its subscription fees. According to him, the company had previously submitted a request for price adjustments, but the NCC had yet to approve or communicate a decision.
Despite this, Starlink proceeded with the changes, increasing its subscription fees by 97% and hiking the cost of its hardware kits by 34%.
“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.
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs.
“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,” Dr. Muoka stated.
The price of Starlink’s monthly internet service in Nigeria jumped from N38,000 to N75,000, while the price of the hardware kits increased from N440,000 to N590,000. Starlink attributed the price hike to “excessive inflation” in Nigeria.
Regulatory Response
Muoka emphasised that Starlink’s actions undermined the stability of the telecommunications regulatory environment, warning that the NCC would take appropriate enforcement measures to address the violation.
Under the Nigerian Communications Act, all telecom operators are required to seek approval from the NCC before adjusting their tariffs.
Industry Reactions
Local telecom operators in Nigeria have been pushing for a tariff review due to rising inflation and increasing operational costs.
Both the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have called for price adjustments.
However, the NCC and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have urged operators to explore innovative ways to manage inflationary pressures rather than increasing prices.
The NCC’s upcoming actions against Starlink are expected to reinforce its commitment to maintaining regulatory oversight in the telecom sector.