SpaceX-owned Starlink has decided to backtrack on its decision to double base subscription prices in Nigeria, following a block by the country’s communications regulator three weeks ago. The company had initially announced an increase in prices for its standard residential plan with a 1 TB fair usage policy, raising it to ₦75,000 ($48) from ₦38,000 ($24). Roaming customers were also set to face significant hikes, with local roaming fees going up to ₦167,000 per month from ₦49,000, and international roaming costs reaching ₦717,000 per month.
These new rates were slated to come into effect on October 31st. However, Nigerian regulators stepped in, citing concerns over the price hikes. While Elon Musk defended the adjustments as being in line with inflation, the Nigerian Communications Commission (NCC) reminded Starlink of the country’s pricing guidelines for Internet Service Providers (ISPs). The NCC pointed out that Starlink had not obtained approval for the price increase, and as a result, the regulator instructed the company to reverse the decision or face potential sanctions.
According to a statement from the NCC to TechCabal, Starlink’s actions were found to be in violation of Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, as well as Starlink’s License Conditions regarding tariffs. The NCC made it clear that any changes to pricing must be approved by the regulatory body to ensure compliance with established regulations.
In response to the NCC’s directives, Starlink has reversed the planned price increase in Nigeria. The company will now need to adhere to the country’s regulatory framework for pricing and obtain necessary approvals before making any future adjustments to its subscription fees. This development highlights the importance of regulatory oversight in ensuring fair and transparent practices in the telecommunications industry.
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