Elon Musk’s satellite internet service, Starlink, has halted new orders for its Residential Plan across Nigeria, citing pending regulatory approval for its proposed price hike.
The company, however, continues to offer its premium Business Plan, which costs N159,000 per month, significantly higher than the Residential Plan’s current subscription fee of N38,000 per month.
Starlink’s decision follows pushback from the Nigerian Communications Commission (NCC), which rejected the company’s proposed 97 per cent price increase for monthly subscriptions from N38,000 to N75,000, as well as a 34 per cent hike in hardware costs, from N440,000 to N590,000.
The NCC stated that Starlink’s actions violated Sections 108 and 111 of the Nigerian Communications Act, 2003, and its licensing terms.
In response, Dr. Reuben Muoka, NCC’s Director of Public Affairs, disclosed that the regulator had initiated pre-enforcement actions against Starlink.
“The Commission remains committed to ensuring consumer protection and market stability. Operators must seek and secure regulatory approvals for tariff changes before implementation,” Muoka stated.
Starlink maintains that the price adjustment is necessary to address operational challenges and inflationary pressures.
In a statement to its customers, the company warned, “Without these approvals, our ability to continue delivering service is at risk.” It also emphasized its commitment to enhancing internet access in Nigeria and working closely with regulators to resolve the issue.
“We’re committed to providing high-speed internet in Nigeria and are making adjustments to improve the customer experience,” Starlink reiterated, adding that new Residential Plan orders will resume once regulatory approval is secured.
Starlink launched in Nigeria in January 2023 and has experienced surging demand due to its high-speed internet service, particularly in underserved areas. Previously, the company paused new orders in five major cities—Lagos, Abuja, Port Harcourt, Benin City, and Warri—due to capacity constraints.
This latest suspension, however, affects the entire country, underscoring the regulatory challenges the company faces.
Analysts note that Starlink’s unique position in the market, coupled with its foreign-based pricing model, complicates its compliance with local regulations.
Telecom industry analyst Funso Adedayo remarked, “The NCC’s response highlights the importance of tariff regulation in protecting consumers, but it also underscores the difficulty of balancing innovation with fair competition in the sector.”
Starlink’s price hike has drawn criticism from local telecom operators, who accuse the NCC of double standards. These operators claim they have repeatedly been denied permission to increase tariffs despite rising operational costs.
“This disparity creates an uneven playing field and undermines the competitiveness of local operators,” said Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON).