The Nigerian Communications Commission (NCC) has reversed its earlier warning to Starlink, the internet service provider owned by Elon Musk, regarding potential sanctions for a subscription price increase that occurred without regulatory approval.
Dr. Reuben Muoka, the NCC’s Director of Public Affairs, communicated this shift to Nairametrics, clarifying that his previous remarks were made in error. “Please disregard my earlier response. My statement was a mistake,” he noted in correspondence with the publication.
The reason behind the regulator’s decision to retract its position remains to be determined, particularly since it previously indicated that Starlink’s actions violated existing laws by raising tariffs without authorization.
Nairametrics initially reported that the NCC was poised to take action against Starlink following complaints that the regulatory body was applying double standards. Critics pointed out that while Starlink was allowed to raise its prices, local telecom operators were not granted similar permission.
In his previous comments, Muoka stated that Starlink had yet to receive approval for its price increase, which violated Sections 108 and 111 of the Nigerian Communications Act of 2003 and specific licensing terms regarding tariffs.
“The Commission was taken aback by Starlink’s decision to unilaterally adjust its subscription fees without our consent,” Muoka explained. “The company announced price changes after submitting a request for approval, which the Commission had yet to respond to. This action appears to breach the Nigerian Communications Act and the conditions of Starlink’s license. The NCC is prepared to implement necessary enforcement actions against any licensee that undermines the stability of the telecommunications sector,” he emphasized.
Starlink’s Price Increase
Recently, Starlink announced a staggering 97% increase in its monthly subscription fee, raising it from $23 to $46. Additionally, the cost for new users acquiring Starlink kits has surged by 34%, from $271 to $364. The company attributed these changes to “excessive inflation” impacting operations in Nigeria.
In the meantime, local telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria, have been vocal about their need for a tariff review. They argue that the telecom sector must still adjust its prices despite the pressing inflation and economic conditions affecting other industries.
However, the NCC, along with the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has rejected these calls, advising operators to seek innovative solutions to diminish the challenges posed by inflation and high operational costs.
The back-and-forth between the NCC and Starlink highlights ongoing tensions within Nigeria’s telecommunications landscape. As the regulatory body navigates its role amid price hikes and market pressures, consumers and providers wonder about the future of pricing and service stability in the sector.
