October 08, (THEWILL) – The Nigerian Communications Commission (NCC) has announced plans to sanction Starlink, Elon Musk’s satellite internet company, for increasing its subscription price in Nigeria without approval from the regulator.
Last week, Starlink increased monthly subscription for its internet service from N38,000 to N75,000. For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.
The company, in a message to its customers in Nigeria, cited “excessive inflation” for the price hike.
A report by Nairametrics, had highlighted concerns from stakeholders accusing the NCC of allowing Starlink’s price hike while restricting local telecom providers from adjusting tariffs.
Responding to the report in a statement on Tuesday, the NCC’s Director of Public Affairs, Dr Reuben Muoka, clarified that Starlink did not receive regulatory approval for its new pricing. He noted that the company’s actions violated Sections 108 and 111 of the Nigerian Communications Act of 2003, which governs tariff regulation for telecom services.
Section 108 of the Nigerian Communications Act 2003 empowers the commission to oversee telecom tariffs, while Section 111 enables NCC to impose penalties on license holders who exceed approved rates.
“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission.
“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.”
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs.
“The Commission will therefore take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry”, Muoka added.
