The Nigerian Communications Commission (NCC) has announced its intention to sanction Starlink, Elon Musk’s internet company, for increasing its subscription prices in Nigeria without prior approval from the regulator.
This follows complaints from stakeholders who accused the NCC of double standards for allowing Starlink to increase its rates while preventing local telecom operators from adjusting their tariffs.
Responding to an inquiry, the NCC’s Director of Public Affairs, Dr. Reuben Muoka, confirmed that Starlink did not obtain approval for the price hike, which violates Sections 108 and 111 of the Nigerian Communications Act, 2003, and the company’s license conditions regarding tariffs.
Muoka expressed surprise at Starlink’s decision to implement price changes after submitting a request to the NCC, which was still under review. He stated, “The Commission will take appropriate enforcement measures against any action by a licensee that erodes regulatory stability in the telecommunications industry.”
Starlink recently increased its monthly subscription fee in Nigeria by 97%, from ₦38,000 to ₦75,000, and raised the cost of its hardware kits by 34%, from ₦440,000 to ₦590,000. The company attributed the price hikes to “excessive inflation.”
Local telecom operators in Nigeria, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have also called for tariff adjustments due to rising inflation and operational costs.
However, the NCC and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have urged operators to explore innovative solutions rather than increasing prices.
Under the Nigerian Communications Act, telecom operators cannot implement price changes without NCC approval. The regulator can enforce financial penalties on any licensee that exceeds approved tariff rates.