The Nigerian Communications Commission (NCC) has announced its intention to sanction Elon Musk’s Starlink for raising subscription prices in Nigeria without prior approval from the regulator. This decision follows a report published on Sunday by Nairametrics, where stakeholders criticized the NCC for allowing Starlink’s price increase while preventing local telecom operators from adjusting their tariffs.
In response to the report, the NCC’s Director of Public Affairs, Dr. Reuben Muoka, clarified that the Commission did not approve Starlink’s price hike. He stated that the company’s action violated Sections 108 and 111 of the Nigerian Communications Act, 2003, which govern tariff regulations and license conditions.
Muoka expressed the NCC’s surprise at Starlink’s decision to raise prices without authorization. According to him, the company had previously filed a request for a price adjustment, but the NCC had not yet communicated its decision before Starlink implemented the changes.
He further explained that Starlink’s move to unilaterally increase its subscription prices was unexpected, as it went ahead with the adjustments despite being in communication with the NCC on the matter. This action, Muoka noted, contravened Starlink’s license conditions as well as the regulatory provisions of the Nigerian Communications Act.
The NCC emphasized that it would take enforcement action against any licensee that undermines the regulatory stability of the telecom industry. Muoka reiterated that the Commission is committed to maintaining fair practices and ensuring compliance from all operators under its jurisdiction.
The price adjustment by Starlink saw a 97% increase in the monthly subscription fee for its internet service in Nigeria, jumping from N38,000 to N75,000. Additionally, the cost of Starlink kits for new users rose by 34%, from N440,000 to N590,000. Starlink cited “excessive inflation” as the reason for the increases.
Meanwhile, local telecom operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been advocating for a tariff review due to inflation and other economic challenges. However, the NCC, along with the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has rejected these requests, urging operators to find innovative ways to cope with rising costs.
The Nigerian Communications Act 2003 grants the NCC the authority to regulate telecom tariffs, ensuring that no licensee can impose charges without the Commission’s approval. Additionally, the Act prescribes penalties for operators who violate the approved tariff rates.
