NCC Retracts Sanction Threat Against Starlink Over Unapproved Price Hike

The Nigerian Communications Commission (NCC) has retracted a previous statement where it warned of potential sanctions against Starlink, Elon Musk’s internet company, for increasing its subscription rates without approval. 

This clarification came from Dr Reuben Muoka, NCC’s director of Public Affairs, who admitted that his initial remarks were incorrect.

According to reports, Muoka acknowledged that his earlier comments were a “mistake of assertion.”

It’s still uncertain why the regulatory body reversed its decision after earlier establishing that Starlink’s price hike violated the country’s regulatory framework, particularly sections of the Nigerian Communications Act 2003, which requires prior approval for such tariff adjustments.

Previously, the Commission had indicated that Starlink’s unauthorised price increase, which saw monthly subscriptions rise from ₦38,000 to ₦75,000, contravened the law. 

The telecoms regulator had noted that the action did not receive its sanction and was surprised at Starlink’s move, especially as the company had submitted a request for approval that was still under review. 

At that time, Muoka stated that the NCC was evaluating enforcement measures to address this breach and maintain regulatory stability within the industry.

The issue has raised eyebrows within the telecom sector, particularly as local operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have long advocated for a review of tariffs to address rising operational costs driven by inflation. 

Local operators had spoken about what they perceived as a double standard, with the NCC allowing international players like Starlink to increase prices while rejecting similar requests from Nigerian firms.

Starlink, in a message to its customers, justified the price surge by mentioning the country’s high inflation rates. However, the Commission and the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, had previously advised local telecom operators to adopt innovative measures to counteract economic pressures instead of pushing for price increases.

It’s not yet certain whether Starlink has since secured the necessary regulatory approval for its price adjustments or if the NCC’s withdrawal was due to an internal error.

What is evident, however, is that the NCC remains focused on ensuring compliance with Nigerian laws and maintaining a level playing field for both domestic and foreign telecom operators.