Starlink has suspended its proposed increase in subscription tariffs in Nigeria following significant pushback from the Nigeria Communications Commission (NCC). The satellite internet provider, owned by tech mogul Elon Musk, made this announcement on Friday, attributing the decision to “regulatory challenges” faced in the country.
Earlier this month, Starlink had announced a controversial plan to raise its standard residential subscription fee from N38,000 to N75,000, representing nearly a 97 percent increase. The operator’s hardware which previously sold at N440,000 was also increased to N590,000.
This proposed hike raised alarm among subscribers and telecom operators alike, prompting the NCC to intervene. The commission stated that Starlink had not obtained the necessary approvals to implement such an increase.
Read also: Nigerian Telcos considering renewable energy and satellites to reduce the cost of operation
Pre-enforcement action
The situation also sparked a broader conversation about pricing practices in Nigeria’s telecommunications sector. Other network providers expressed their concerns, accusing the NCC of double standards. While Starlink faced regulatory scrutiny for its proposed price increase, traditional telecom operators have consistently been denied requests to raise their tariffs despite the pressures of soaring inflation and instability in the naira. This disparity in treatment prompted calls for a more balanced regulatory approach that considers the economic realities facing all service providers. NCC stated that the commission would take pre-enforcement action to stop the hike.
Starlink caves to pressure
In light of the NCC’s actions and the public outcry, Starlink issued a statement on Friday announcing the suspension of the price increase.
“Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service,” the satellite Internet owned by Mr Musk said in a statement on Friday.
“Today, we are temporarily suspending this price increase as we navigate regulatory challenges.”
This decision underscores Starlink’s willingness to adhere to regulatory authorities, especially in a market as complex as Nigeria, where the interplay between service providers and regulators is critical for sustainable operations.
Read also: Vodacom and MTN partner with Starlink and Amazon Kuiper to bridge network gap
For subscribers who had already been charged at new rates, Starlink assured that they will be issued a one-time credit to cover the difference.
“If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference. You also have the flexibility to cancel your service at any time,” the satellite Internet service operator stated.
Starlink reaffirmed its commitment to providing high-speed internet in Nigeria.
“We remain committed to providing high-speed Internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience,” the statement added, warning that it may no longer continue delivering Internet access should NCC withhold the approval to hike subscription.
“Without these approvals, our ability to continue delivering service is at risk,” Mr Musk’s satellite provider warned. “Thank you for choosing Starlink and supporting our mission to bring affordable, high-speed internet to more people as many people around the world as possible.”