The Nigerian Communications Commission (NCC) on Tuesday commenced pre-enforcement action against Starlink to stop the data service provider from increasing its tariffs.
Pre-enforcement action is the term for actions done to address any problems or avoid non-compliance before a law, regulation, or agreement is enforced.
The development occurred just hours after NCC’s Director of Public Affairs, Reuben Muoka, stated that the commission was “surprised” by the pricing adjustments the company had disclosed.
Read also: Nigerians to pay more for Starlink subscription due to high inflation rate
Initial NCC’s statement to sanction Starlink
Mr Muoka stated the NCC had received a request from Starlink to modify its rates, but the regulator had not approved it.
“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for a price adjustment for which the Commission was yet to communicate a decision,” NCC had said earlier in a statement on Tuesday.
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence 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.”
But in a different statement, Muoka requested that media outlets retract the commission’s earlier statement on the subject.
“I wish to request that all who have received this press statement should ignore it, as it was issued in error,” he said.
“Kindly withdraw it if it has been posted on your platforms.”
Read also: Vodacom and MTN partner with Starlink and Amazon Kuiper to bridge network gap
Starlink’s price hike
Citing growing inflation, Elon Musk’s SpaceX-owned satellite internet firm Starlink announced a price increase in a message sent to its Nigerian consumers last week.
The service provider stated on its website that the monthly membership rate for new users would increase by 97%, from N38,000 to N75,000.
The Starlink kit (hardware for installation) will now cost N590,000, a 34% increase from the previous price of N440,000, making it more expensive for new customers.
A mobile regional (unlimited roam) package for N167,000, a mobile global (global roam) package for N717,000, and a normal residential package for N75,000 are among the other modified pricing structures.
Stakeholders in the telecommunications industry have been demanding an upward pricing review to draw in investors.
Telecom companies announced on April 25 that price increases for their services were long overdue, given that they had not hiked rates for the past 11 years.