Starlink may face sanctions for unapproved price increase in Nigeria

SpaceX-owned satellite provider Starlink may face sanctions from the Nigerian Communications Commission (NCC) after it increased subscription fees without the regulator’s approval. 

One person with direct knowledge of the matter said Starlink wrote to the regulator to get approval for the price hike but did not wait for a response. 

On October 1, 2024, Starlink told customers about a 100% increase in subscription fees, citing rising inflation. The NCC immediately asked Starlink to reverse the price. hike, which the company complied with on Friday. 

“Regulatory enforcement actions do not necessarily end with fines,” said one NCC source who asked not to be named so he could speak freely. 

Starlink will be formally informed of the possibility of regulatory action, the same person said. The company will then be expected to respond before the the NCC makes a decision. The possible decisions can be fines, cautionary notes or nonaction if no wrongdoing is found. A decision is expected in about two weeks.

Starlink launched in Nigeria in 2023 and has 23,897 active subscribers. However, telco executives believe regulators are soft on the company, allowing them to operate without a phyical presence. 

“This is not true,” said an NCC employee who asked not to be named. “Starlink has so far built three landing stations out of the five the NCC mandated it must build.  The way satellite services operate they are not required to establish so many presence but they are doing more in Nigeria than they have done in other African climes.”