Elon Musk’s internet service company, Starlink, has increased the monthly subscription for its service in Nigeria by 97% 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.
While Starlink had reviewed the price of its hardware in Nigeria upwards and downwards several times, this is the second time it has increased subscriptions.
The company in a message to its customers in Nigeria cited “excessive inflation” as the reason for the increment.
What Starlink is saying
For current customers, Starlink said the new subscription rate would take effect from October 31, while it takes effect immediately for new customers. In the Tuesday morning message to its customer in the country, the company said:
“Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below: Standard (Residential): N75,000; Mobile- Regional (Roam Unlimited): 167,000; Mobile – Global (Global Roam): N717,000
“As a current customer, your monthly service price will increase in 1 month, beginning 31 October 2024. For new customers, the price increase is effective immediately.”
“If you do not wish to continue your service, you can cancel at any time.”
Starlink is gaining traction in Nigeria
Despite its higher costs compared with local ISPs, Starlink, which announced its presence in Nigeria in January 2023 had sparked high interest among Nigerians who were eager to change their service providers.
- The ubiquitous status of its satellite service also encourages people in areas with poor internet networks to go for Starlink.
- According to the Internet Service Providers (ISPs) data released by the Nigerian Communications Commission (NCC), Starlink is now one of the leading ISPs in Nigeria in terms of customer numbers.
- As of Q4 2023, Starlink had become the third-largest ISP by customer number in Nigeria with 23,897 customers to its credit.
- Many local ISPs that have been in operation in Nigeria for several years are currently having less than that number of customers.
What you should know
Although Starlink officially announced its presence in Nigeria in January last year, Nigerians had been pre-ordering its hardware since 2022. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
- At that point, Starlink’s hardware and monthly subscription costs stood at N268,584 and N19,260, however, that was at the official dollar exchange rate, which stood at around N450/$1 at the time.
- With the unification of the exchange rate, the prices of hardware and subscriptions also shot up to N378,000 and N38,000 as the Naira value continued to fall.
- Between October and November last year, Starlink slashed its hardware costs by 21% as it pushed to gain more share of the Nigerian ISP market.
- With the price slash, Starlink’s hardware was sold for N299,500. It, however, reverted to the normal price of N378,000 on November 16.
- In March this year, Starlink again increased its hardware price to N800,000. However, this was later slashed to N440,000, which subsisted until the latest increment.