Elon Musk’s internet company, Starlink, has again announced a price increment that would see subscribers on its Residential Plan paying N75,000 per month, an increase from the current N38,000.
This comes a month after the company had suspended the price increment it announced in September following a rebuttal from the Nigerian Communications Commission (NCC) which said Starlink did not secure approval for the increment contrary to existing rules.
On the latest announcement, it is still unclear if the Commission had granted Starlink approval as the Director of Public Affairs at the Commission, Dr. Reuben Mouka, told Nairamentrics he had not been briefed about the development.
What Starlink is saying
In a message to its subscribers notifying them of the increment, Starlink said current customers would start paying the new price starting from January 27th, 2025.
“To continue enhancing the Starlink network and delivering reliable, high-quality service across Nigeria, we are adjusting our monthly subscription prices.
“These changes reflect our commitment to investing in the infrastructure needed to support and improve your experience with Starlink,” Starlink stated.
“As a current customer, your monthly service price will increase in 1 month, beginning 27 January 2025. For new customers, the price increase is effective immediately.
“If you do not wish to continue your service, you can cancel at any time. “
Aside from the Standard (Residential), which has increased to N75,000, Starlink said customers on Regional roaming subscriptions will now pay N167,000 monthly, while those on global roaming will pay N717,000.
What this means
Although the NCC has yet to confirm or deny that the latest increment was approved, it is unlikely that Starlink would announce the increment for the second time without getting the necessary approvals.
- This again may spark controversy in the telecom sector as local operators have been clamoring for data and voice tariff increment, which has not been approved by the telecom regulator.
- After the first increment announcement in September by Starlink, stakeholders in the telecom industry had accused the NCC of double with the belief that the regulator had allowed the satellite-based ISP to increase its price.
- This prompted the Commission to issue a disclaimer that Starlink never secured approval from it before announcing the increment.
- The Commission also pointed out that Starlink, by that action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs, adding that the company would be sanctioned for it.
What you should know
Section 108 of the Nigerian Communications Act 2003 (NCA) gives NCC the authority to regulate telecom tariffs. The Act stipulates that no NCC licensee can charge for services until the NCC approves the tariff rates and charges.
“Holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part,” the Act stated.
Section 111 of the Act also states the Commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the NCC for the provision of any of its services, notwithstanding any other provision of the law.
