In a surprising twist, satellite internet provider Starlink has announced a temporary suspension of its controversial price increase in Nigeria. The move comes after the Nigerian Communications Commission (NCC) abruptly withdrew an earlier statement condemning the company’s decision to raise its prices. The unfolding drama has left many stakeholders in the telecommunications industry confused and concerned about the future of internet services in the country.
The NCC’s initial response to Starlink’s price hike was swift and firm. Just last week, the regulatory body publicly condemned the satellite internet company for increasing its subscription fees without prior approval. Dr. Reuben Muoka, the Director of Public Affairs for the NCC, had called out Starlink for what he described as a violation of Sections 108 and 111 of the Nigerian Communications Act of 2003.
“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka declared.
Starlink had hiked its monthly subscription from ₦38,000 to ₦75,000, a staggering 97% increase. In addition, the cost of its installation kit jumped from ₦440,000 to ₦590,000, representing a 34% hike. Starlink had defended these adjustments, citing excessive inflation and rising operational costs as the reasons behind the drastic increases.
However, in an unexpected development, the NCC issued a brief statement on Tuesday withdrawing its earlier announcement. The commission asked media outlets to retract any reports related to the initial condemnation of Starlink’s actions.
“Kindly note that this press statement on Starlink was issued in error. It is hereby WITHDRAWN. If already published, kindly BRING DOWN,” the message read.
The NCC’s sudden withdrawal has sparked confusion and raised questions about the commission’s internal processes. Many in the telecommunications sector are wondering why the regulatory body made such a quick U-turn, especially after taking such a strong stance against Starlink’s price hike.
“Such a quick retraction is unusual for the NCC. It raises questions about their decision-making process and whether they are under any pressure,” remarked a senior industry executive who chose to remain anonymous.
The NCC’s backtracking has left both local and international telecom operators baffled, with some accusing the regulatory body of showing favoritism towards Starlink, a foreign company. Local telecom firms, who have been lobbying for a tariff review of their own, expressed frustration at the perceived double standard.
The issue of rising operational costs is not unique to Starlink. Local telecommunications operators have long been complaining about the economic pressures they face, including inflation, the rising cost of fuel, and the depreciation of the naira. Organized under the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), these operators have been vocal about their desire for a tariff review.
They argue that the entire industry has been hit hard by the same economic factors that Starlink has cited for its price hikes. However, unlike Starlink, they have not been granted approval to raise their prices.
“The telecommunications industry in Nigeria is struggling under the weight of rising costs. Our local operators are doing everything they can to maintain services, but without a review of tariffs, it is becoming increasingly difficult to stay afloat,” said an ALTON spokesperson.
The NCC’s handling of Starlink’s case has now put additional pressure on the regulatory body to address the concerns of local operators.
Starlink has not officially commented on the NCC’s withdrawal of its earlier statement, but the company had previously defended its decision to raise prices. In a message sent to its Nigerian customers last week, Starlink explained that the price hike was necessary to keep up with inflation and maintain its operations in the country.
“Due to excessive inflation and rising operational costs, we have had to adjust our pricing,” Starlink stated.
However, following the regulatory pushback, Starlink announced that it would temporarily suspend the price increase. The company assured its customers that those who had already been charged at the higher rate would receive a one-time credit to cover the difference.
