BREAKING: NCC to sanction Starlink for unauthorised price hike in Nigeria

The Nigerian Communications Commission (NCC) has announced its intention to sanction Elon Musk’s internet company, Starlink, for raising its subscription prices in Nigeria without the regulator’s approval.

This development follows a report by Nairametrics, in which stakeholders accused the NCC of double standards for permitting this price hike while prohibiting local telecom operators from increasing their tariffs.

In response to inquiries from the publication, the NCC’s Director of Public Affairs, Dr. Reuben Muoka, confirmed that the Commission had not sanctioned Starlink’s price increase.

Muoka stated that Starlink’s actions violate Sections 108 and 111 of the Nigerian Communications Act of 2003, as well as the conditions of its operating license regarding tariffs.

“We were surprised that the company announced price changes after submitting a request to the Commission for a price adjustment, which had yet to receive a decision,” Muoka said. “The unilateral decision by Starlink to increase their subscription packages is in contravention of the Act and its license conditions.”

He emphasized that the NCC would take appropriate enforcement measures against any actions by licensees that threaten the regulatory stability of the telecommunications sector.

Last week, Starlink raised its monthly subscription fees in Nigeria by 97%, from N38,000 to N75,000. The company also increased the price of its Starlink kits (hardware) for new users by 34%, from N440,000 to N590,000, citing “excessive inflation” as the reason for the hikes.

Meanwhile, local telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been advocating for a review of their tariffs. They argue that the telecom sector is the only industry that has not adjusted its prices in light of rising inflation and other economic challenges.

However, both the NCC and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have rejected these calls, urging operators to explore innovative solutions to mitigate the effects of inflation and high operational costs.

According to Section 108 of the Nigerian Communications Act, the NCC has the authority to regulate telecom tariffs, stipulating that no licensee can charge for services until the NCC approves the tariff rates. Additionally, Section 111 allows the Commission to impose financial penalties on any licensee who exceeds the approved tariff rates for their services.