Starlink, Elon Musk’s satellite internet service, halts new orders for its residential kits across Nigeria as it awaits approval from the Nigerian Communications Commission (NCC) to implement a proposed price increase. The suspension affects the Residential Plan, while the Business Plan remains available at ₦159,000 per month compared to the Residential Plan’s current ₦38,000 monthly subscription.
Starlink emphasizes its commitment to providing high-speed internet in Nigeria, stating, “We are working closely with regulators to make adjustments that will improve the customer experience. Until these changes are approved, we are placing new Residential orders on hold.”
Rising Demand and Service Suspension
Previously, Starlink stopped accepting new orders in major cities like Lagos, Abuja, Port Harcourt, Benin City, and Warri due to reaching capacity. The latest suspension extends nationwide and is directly tied to its plans for a price adjustment, which still requires regulatory approval.
Since its launch in January 2023, Starlink has experienced surging demand across Nigeria, owing to its promise of reliable, high-speed internet. Similar trends are seen in other countries, including Zimbabwe, where Starlink’s equipment recently sold out in Harare just months after launch.
Controversy Over Price Increase
On September 30, 2024, Starlink announces plans to raise its Residential Plan subscription fee by 97%, increasing the cost from ₦38,000 to ₦75,000. The price of its hardware kits also jumps by 34%, from ₦440,000 to ₦590,000. The company cites “excessive inflation” as the reason for the adjustments.
The announcement sparks debates within Nigeria’s telecom industry, with local operators accusing the NCC of favoring Starlink by allowing price flexibility not granted to others. However, the NCC denies approving the changes, stating that Starlink’s actions violate Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.
Regulatory Actions
The NCC begins pre-enforcement measures against Starlink for implementing price changes without prior approval. The Commission stresses that such actions undermine consumer protection and the regulatory framework of the telecommunications sector.
In response, Starlink temporarily suspends its proposed price adjustments and warns, “Without these approvals, our ability to continue delivering service is at risk.” The company reiterates its dedication to improving internet access in Nigeria while emphasizing the need for regulatory support to maintain service quality and expand its reach.
