Starlink suspends price increase in Nigeria citing ‘regulatory challenges’ 

Elon Musk’s internet company, Starlink, has suspended the subscription price increment it announced at the end of September.

Suggesting that the suspension was done in response to pressure from the Nigerian Communications Commission, which had earlier faulted the decision, Starlink said it had to suspend the increment as it is currently navigating regulatory challenges in Nigeria.

Starlink said any of its customers that had been charged the new rate would be issued credit to cover the difference.

The company, however, echoed the same sentiment of local operators on the need to increase prices to sustain the business.

What Starlink is saying  

In the message to its Nigerian customers, some of whom have been contemplating switching to other providers over the hike in subscription price from N38,000 to N75,000, Starlink wrote:

• “Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service.  
• Today, we are temporarily suspending this price increase as we navigate regulatory challenges. 
• If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference. You also have the flexibility to cancel your service at any time.  

“We remain committed to providing high-speed internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience. 

“Without these approvals, our ability to continue delivering service is at risk.” 

Backstory 

Starlink had on the last day of September announced a 97% price increase for its monthly subscription 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.

• The company in a message to its customers in Nigeria cited “excessive inflation” as the reason for the increment.

• The announcement had sparked controversy in the Nigerian telecom sector as local operators accused the NCC of double standard for allowing Starlink to increase price, which they are not allowed to do so despite years of appeal to the regulator.

• The NCC, however, responded by saying it did not approve Starlink’s price increment.

• The telecom regulator pointed out that Starlink’s action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.

• NCC’s Director of Public Affairs, Dr Reuben Muoka, later announced that the Commission had commenced pre-enforcement actions against Starlink for implementing price increment without the approval of the regulator.

What you should know 

Telecom operators in the country under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have been clamouring for tariff review.

According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.