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.
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The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence 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.
Back Story
Starlink, the satellite internet provider owned by SpaceX, a week ago announced a significant price increase for its services in Nigeria, raising monthly subscription fees by 97%. The standard service subscription has increased from NGN 38,000 (USD 22.8) to NGN 75,000 (USD 50) monthly.
Additionally, the mobile regional (roam unlimited) plan, which allows customers to use Starlink kits beyond their home or office within Nigeria, increased from NGN 49,000 (USD 29.4) to NGN 167,000 (USD 100) monthly.
Meanwhile, the mobile global roaming service is now priced at NGN 717,000 (USD 429.5) monthly. New Starlink kits have also experienced a price hike of 34%, rising from NGN 440,000 (USD 263.6) to NGN 590,000 (USD 353.4). Existing customers will begin paying these new rates starting October 31st, while new subscribers are immediately subject to the revised pricing.
In its communication with customers, Starlink cited excessive inflation in Nigeria as the primary driver behind price increases.
In addition, a report by Space in Africa analysing Starlink’s affordability and adoption in Nigeria found that Starlink’s total cost of ownership (TCO), which includes the one-time hardware purchase and monthly fees, is higher than most traditional broadband options. The TCO for high-end fixed broadband plans in Nigeria typically ranges from NGN 600,000 to NGN 1,200,000. While Starlink’s TCO initially appears higher due to its high hardware cost, the relatively close monthly subscription fees compared to fixed broadband plans narrow the gap over extended periods.
This suggests that while Starlink requires a larger upfront investment, its long-term affordability becomes more appealing, particularly for customers who value consistently high internet speeds and those in remote or underserved areas lacking access to traditional broadband infrastructure.
Addition Credits: Space in Africa
