The Nigerian Communications Commission has announced it will impose sanctions on Elon Musk’s internet company, Starlink, for raising its subscription prices in Nigeria without regulatory approval.
This decision follows a report by Nairametrics in which stakeholders accused the NCC of double standards, as it had previously disallowed local telecom operators from increasing their tariffs.
In response to inquiries about the situation, the Commission’s Director of Public Affairs, Dr. Reuben Muoka, confirmed that the NCC did not approve Starlink’s price hike.
According to him, Starlink’s actions violated Sections 108 and 111 of the Nigerian Communications Act, 2003, as well as its licensing conditions related to tariffs.
Muoka stated that the telecom regulator was also surprised by the price increase implemented by Starlink.
“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission.
“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs.
“The Commission will therefore take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry,” the DPA said.
Last week, Starlink raised its monthly subscription for internet service in Nigeria by 97%, increasing the price from N38,000 to N75,000.
Additionally, the company raised the cost of Starlink kits (hardware) for new users by 34%, from N440,000 to N590,000.
In a message to customers, Starlink cited “excessive inflation” as the reason for the price increase.
Meanwhile, telecom operators in Nigeria, represented by the Association of Licensed Telecommunications Operators of Nigeria, and the Association of Telecommunications Companies of Nigeria, have been advocating for a tariff review.
They contend that the telecom industry is the only sector that has not adjusted its prices, despite rising inflation and other economic conditions that necessitate a price increase.
They argue that the telecom industry is the only sector that has not adjusted its prices despite rising inflation and other economic factors that justify a price increase.
