NCC to sanction Elon Musk’s Starlink over unilateral price hike

The Nigerian Communications Commission (NCC) has denied approving a price hike for Elon Musk’s Starlink, following the company’s increase in its subscription price in Nigeria.

In a statement on Tuesday, the NCC said it was surprised by the move, which took the country by surprise as well.

Recall that news broke over the weekend that Starlink had raised its subscription fees in Nigeria, drawing criticism from other players in the sector, particularly Internet Service Providers (ISPs). They accused the NCC of double standards, noting that the commission had denied other service providers, primarily mobile network operators, the opportunity to raise tariffs.

However, the NCC’s Director of Public Affairs, Reuben Muoka, stated that the commission had not approved Starlink’s price increase.

According to Muoka, Starlink’s action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, as well as its license conditions regarding tariffs.

Muoka said the telecom regulator was equally surprised by the price hike 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 stated.

Indeed, Starlink last week increased the monthly subscription for its internet service in Nigeria by 97 per cent, from N38,000 to N75,000.

For new users, the company also increased the price of the Starlink kits (hardware) by 34 per cent, from N440,000 to N590,000.

The company, in a message to its customers in Nigeria, cited “excessive inflation” as the reason for the price increase.