According to industry reports, Elon Musk’s Starlink has temporarily suspended orders for residential internet kits across Nigeria. The hold will remain until approval from the Nigerian Communications Commission (NCC) for a recently announced price increase is secured.
In contrast, the company still accepts orders for its premium Business Plan, which has a monthly subscription fee of US$94.64, significantly higher than the Residential Plan’s cost of US$22.62.
“We’re dedicated to providing high-speed internet in Nigeria and are actively working with regulators to implement changes to enhance the customer experience. Until we receive the necessary approvals, we will pause new residential orders,” the company announced.
Previously, reports indicated that Starlink had ceased new orders in major cities such as Lagos, Abuja, Port Harcourt, Benin City, and Warri due to capacity limitations in those regions. However, the current suspension affects the entire country and is primarily due to the need for a price adjustment, a move that has drawn criticism from the regulator.
The demand for Starlink’s services has surged since its official launch in Nigeria in January last year. This trend is not unique to Nigeria; the company’s terminals are reportedly sold out in Harare, Zimbabwe, just two months after receiving the green light to operate there.
At the end of September, Starlink announced a staggering 97% increase in its monthly subscription fee and a 34% increase in the price of the Starlink hardware kits.
In a communication to its Nigerian customers, Starlink cited “excessive inflation” as the reason behind the price hike. This announcement ignited controversy within the Nigerian telecom sector, as local operators accused the NCC of double standards for permitting Starlink to adjust prices while denying similar requests.
The NCC clarified its stance by not sanctioning Starlink’s price increase. It highlighted that the company’s actions violated sections 108 and 111 of the Nigerian Communications Act of 2003 and its operating license conditions regarding tariffs.
Dr. Reuben Muoka, the NCC’s Director of Public Affairs, revealed that the Commission has begun pre-enforcement actions against Starlink for implementing price hikes without prior approval.
In light of the NCC’s response, Starlink has suspended its price increase announcement and warned that “without these approvals, our ability to maintain service delivery is at risk.” The company reiterated its commitment to providing reliable internet service in Nigeria while stressing the importance of regulatory support for necessary improvements to enhance the customer experience.
