The Nigerian Communications Commission (NCC) has announced plans to sanction Starlink, the internet service provider owned by Elon Musk, for increasing its subscription prices in Nigeria without the required approval from the regulatory body. This decision follows allegations of regulatory inconsistency, as stakeholders criticized the NCC for permitting Starlink’s price hike while prohibiting local telecom operators from adjusting their tariffs.
In a response to inquiries from Nairametrics, which first reported on the issue, Dr. Reuben Muoka, the NCC’s Director of Public Affairs, clarified that the Commission did not approve the recent price increase. He emphasized that Starlink’s actions violated Sections 108 and 111 of the Nigerian Communications Act of 2003, as well as the licensing conditions concerning tariffs.
Muoka expressed surprise at Starlink’s decision to unilaterally raise its subscription fees. “The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” he stated. “We were surprised that the company announced price changes after filing a request for a price adjustment that the Commission had not yet ruled on.”
The NCC highlighted that Starlink’s actions contravene regulatory guidelines, warning that enforcement measures would be implemented against any licensee threatening the stability of the telecommunications industry.
Last week, Starlink raised its monthly subscription fee by 97 per cent, from ₦38,000 to ₦75,000, while also increasing the cost of its hardware kits by 34 per cent, from ₦440,000 to ₦590,000. The company cited “excessive inflation” as the reason for the price adjustments in a message to its Nigerian customers.
As the NCC moves forward with its investigation and potential sanctions, the situation underscores ongoing tensions in Nigeria’s telecommunications sector, particularly regarding pricing and regulatory compliance.
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