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Nigerians to pay more for Starlink subscription due to high inflation rate

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Nigerians to pay more for Starlink subscription due to high inflation rate

Oluwatosin Adeyemi by Oluwatosin Adeyemi
October 2, 2024
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Nigerians to pay more for Starlink subscription due to high inflation rate

Nigerians to pay more for Starlink subscription due to high inflation rate

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The monthly subscription fee for Starlink, Elon Musk‘s internet service provider, has increased by 97% in Nigeria, from N38,000 to N75,000. The business also raised the Starlink hardware kits for new customers by 34%, from N440,000 to N590,000.

Starlink has raised subscription fees twice despite repeatedly adjusting the cost of its gear in Nigeria.

In a communication to its clientele in Nigeria, the business explained the rise as the result of “excessive inflation.”

Starlink stated that the increased subscription rate would go into effect immediately for new customers and would take effect on October 31 for existing users. The corporation stated in its letter to its Nigerian customers on Tuesday morning.

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Read also: Nigerian Telcos considering renewable energy and satellites to reduce the cost of operation

In its complete statement, it stated, “Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below Standard (Residential): N75,000; Mobile- Regional (Roam Unlimited): 167,000; Mobile – Global (Global Roam): N717,000

“As a current customer, your monthly service price will increase in 1 month, beginning 31 October 2024. For new customers, the price increase is effective immediately.”

“If you do not wish to continue your service, you can cancel at any time,” it concluded.

Starlink’s quick acceptance in Nigeria 

When Starlink announced its arrival in Nigeria in January 2023, it aroused much curiosity among Nigerians who were ready to switch service providers despite its higher prices compared to local ISPs.

Due to the satellite service’s widespread availability, people in places with inadequate internet networks are also encouraged to choose Starlink.

According to data from ISPs made public by the Nigerian Communications Commission (NCC), Starlink is now among the top Internet service providers (ISPs) in Nigeria in terms of user base.

As of Q4 2023, Starlink was the third-largest ISP in Nigeria based on customer count, with 23,897 users.

Numerous local ISPs in Nigeria that have been in business for some years are serving less than that number of users.

Notwithstanding Starlink’s January announcement of its formal arrival in Nigeria, Nigerians have placed pre-orders for its hardware since 2022.

When the company made its official announcement, it had switched from using dollars to naira, quoting prices for the hardware as $600 and the membership as $43.

Read also: Vodacom and MTN partner with Starlink and Amazon Kuiper to bridge network gap

History of Starlink’s hardware kits and subscription fees review 

At that time, Starlink’s hardware and monthly subscription fees were N268,584 and N19,260, respectively. However, that was based on the official dollar exchange rate, approximately N450/$1.

The Naira’s value continued to decline along with the currency rate unification, driving up the cost of hardware and subscriptions to N378,000 and N38,000, respectively.

Starlink cut its hardware prices by 21% between October and November of last year to increase its market share as an ISP in Nigeria.

After the price reduction, Starlink’s hardware was sold for N299,500. On November 16, though, it returned to its regular price of N378,000.

Starlink once more raised the price of their gear to N800,000 in March of this year. This was then reduced to N440,000, though, and remained that way until the most recent increase.

Tags: Nigerian Communications CommissionStarlink
Oluwatosin Adeyemi

Oluwatosin Adeyemi

Oluwatosin Adeyemi is a seasoned writer with 5+ years of experience. He holds a degree in Animal Science from Olabisi Onabanjo University. A hardworking and creative individual with a passion for teamwork and self-improvement.

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