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Starlink halts price hike amid regulatory hurdles in Nigeria

Starlink aborts price hike

admin by admin
October 25, 2024
in ICT, News
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Starlink halts price hike amid regulatory hurdles in Nigeria
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Elon Musk’s satellite internet service, Starlink, has paused its recent price hike for Nigerian subscribers, citing unresolved regulatory issues.

Announced on Thursday, the decision comes after Starlink initially increased its monthly subscription by 97%—from N38,000 to N75,000—drawing backlash from customers over the sudden hike.

In a message to Nigerian subscribers, Starlink explained that the increase was intended to counter inflation and sustain service quality. However, it’s now temporarily on hold as the company navigates regulatory hurdles. Customers who had already been billed at the new rate will receive a credit, and users may also cancel their subscriptions if they choose.

“Without necessary regulatory support, our ability to deliver service in Nigeria is at risk,” Starlink warned, emphasizing its commitment to high-speed internet. Starlink also increased the price of its installation kit by 34%, pushing it from N440,000 to N590,000. The Nigerian Communications Commission, NCC, meanwhile, withdrew a previous statement on Starlink’s operations, citing an “error” and requesting media outlets to retract publications.

READ ALSO : NCC may sanction Starlink for unilateral tarrif hike

 

Credible News recalls that on October 8, NCC had announced plans to take enforcement measures against Starlink, for raising its subscription prices in Nigeria without the regulator’s approval.

This was disclosed in a statement issued by the commission’s Director of Public Affairs, Reuben Muoka, on October 8.

“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission, NCC. The action of the company is in contravention of Sections 108 and 111 of the Nigerian Communications Act 2003, and Starlink’s Licence Conditions regarding tariffs. The Commission has commenced pre-enforcement action on the licensee on the 3rd of October, 2024,” the statement read.

Starlink had said the price hike would affect both existing and new customers.

Nigeria’s Association of Licensed Telecommunication Companies criticized Starlink’s moves, calling it a “regulatory affront.” As Starlink works to secure support, it remains committed to its goal of reliable internet for Nigeria’s users while awaiting clarity on the regulatory front.

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