Starlink, the satellite internet service owned by Elon Musk’s SpaceX, has temporarily suspended its recent increase in monthly subscription fees for Nigerian users. This suspension follows backlash and regulatory scrutiny over the price adjustment implemented on October 1, 2024.
In a communication sent to subscribers on Thursday, Starlink explained its decision and assured customers charged the increased amount would receive a one-time credit to cover the difference. The message stated:
“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.
Thank you for choosing Starlink and supporting our mission to bring affordable, high-speed internet to more people around the world.”
The notice provides some relief to subscribers, indicating that those charged the increased rate for October will be credited to match the previous rate. Following this update, Starlink’s website now shows that the monthly subscription cost for residential service has reverted to NGN 38,000, although the cost of Starlink hardware remains at NGN 590,000.
Background on Starlink’s Price Adjustments in Nigeria
On October 1, Starlink raised Nigeria’s residential monthly subscription rate from NGN 38,000 (USD 23.1) to NGN 75,000 (USD 45.6), attributing the increase to inflationary pressures. Additionally, new Starlink kits saw a 34% hike, from NGN 440,000 (USD 267.6) to NGN 590,000 (USD 358.9). The premium business plan subscription remained at NGN 50,000 (USD 30.4), with hardware costs set at NGN 3,079,257 (USD 1,872.9). Existing customers were expected to begin paying these new rates by October 31, while new subscribers were immediately subject to the updated fees.
Regulatory Challenges and NCC’s Response
The Nigerian Communications Commission (NCC) responded to Starlink’s pricing adjustments, noting that the company’s unilateral decision to raise subscription fees in Nigeria violated established regulatory protocols. Reuben Muoka, Director of Public Affairs at the NCC, confirmed that Starlink had not received the necessary regulatory approvals before implementing the increase. Muoka explained: “The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the NCC.”
The NCC stated that Starlink’s price increase contravened Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, which mandate regulatory oversight on tariff adjustments to protect consumers and maintain market stability. The commission has reportedly initiated pre-enforcement actions against the company and called for regulatory compliance to safeguard subscriber interests.
What’s Next?
Nigerian subscribers may experience further price adjustments when Starlink and the NCC agree on a compliant pricing model. The ongoing discussions underscore the importance of regulatory engagement in Nigeria’s telecommunications sector, balancing affordability and market stability with private sector initiatives to improve internet access.
Source:https://spaceinafrica.com/2024/10/25/starlink-temporarily-suspends-planned-price-increase-for-nigerian-subscribers-amid-regulatory-disputes/
