The Nigerian Communications Commission (NCC) has withdrawn its statement claiming that Starlink did not receive regulatory approval before hiking its subscription prices in Nigeria
The development comes a few hours after the director of public affairs at NCC, Reuben Muoka, said the commission was “surprised” when the company announced the price changes.
A recent report indicated that telecom stakeholders had accused the regulator of double standards for allowing the satellite Internet company to increase prices while preventing local telecom operators from increasing their tariffs.
Starlink recently hiked its monthly subscription fees in Nigeria by a staggering 97%, raising the standard residential plan from ₦38,000 to ₦75,000. The company attributed the price increase to “excessive inflation.”
In response, the Commission said it didn’t approve Starlink’s price increment, raising concerns over Starlink’s compliance with local regulations.
NCC’s Director of Public Affairs, Dr Reuben Muoka, noted that Starlink’s actions violated Sections 108 and 111 of the Nigerian Communications Act, 2003, which gives the Commission the authority to regulate telecom tariffs.
“We were surprised that the company unilaterally adjusted its prices after submitting a request for approval, which the Commission was yet to decide on,” Muoka said.
He emphasised that the telecom regulator would take appropriate enforcement measures to maintain the industry’s stability and ensure compliance.
The NCC’s decision to penalise Starlink reinforced its stance against price increments without following due process, ensuring that international companies comply with Nigerian laws. But now that it has been reversed, it is unclear what is going on or what it means for other Nigerian telcos who have been clamouring for tariff increases.
The latest Starlink development comes at a time when 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 tariff review to reflect the economic realities of rising inflation and operating costs.
In August 2024, the Commission (NCC) released a document, mandating telcos to provide subscribers with complete information, including full disclosure of all tariff components and conditions.
A few days later, telecom operators in Nigeria said they were considering a load-shedding strategy to manage operations while pushing for tariff increase due to mounting financial pressures.
The NCC acknowledged the challenging operating environment but stated that operators’ claims about economic conditions affecting service quality are seen as part of their strategy.
Meanwhile, by enforcing the stipulations of the Nigerian Communications Act, the NCC aims to prevent any unapproved price hikes and ensure that all telecom operators, both local and foreign, adhere to the same standards.
