Elon Musk’s satellite internet service, Starlink has temporarily suspended orders for its residential internet kits across Nigeria.
This decision comes as the company awaits regulatory approval from the Nigerian Communications Commission (NCC), for a proposed price adjustment.
Starlink’s residential plan, previously priced at N38,000 per month, is currently on hold. However, customers can still access the company’s Business Plan, which costs N159,000 per month.
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In a statement, Starlink emphasized its commitment to improving internet services in Nigeria while pursuing regulatory clearance for the proposed pricing changes. “Until these changes are approved, we are placing new Residential orders on hold,” the company stated.
Backstory
Starlink suspension of kit orders in Nigeria stems from the company’s attempt to increase its residential subscription fees by 97%. Recall that the Elon Musk-owned satellite internet in October 2024, increased the monthly subscription for its service in Nigeria from N38,000 to N75,000. For new users, the company also increased the kits of its hardware by 34% from N440,000 to N590000.
While Starlink had reviewed the price of its hardware in Nigeria upwards and downwards several times, this increase made it the second time it has increased subscriptions. The company in a message to its customers cited excessive inflation as the reason for the increment.
In a message to its customer, the company said,
“Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below: Standard (Residential): N75,000; Mobile- Regional (Roam Unlimited): 167,000; Mobile – Global (Global Roam): N717,000.
“As a current customer, your monthly service price will increase in 1 month, beginning 31 October 2024. For new customers, the price increase is effective immediately. If you do not wish to continue your service, you can cancel at any time.”
However, Starlink later reversed its decision to double its base subscription prices in Nigeria three weeks after Nigeria’s communication regulator blocked the increase. The NCC noted that Starlink’s action contravened “Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink’s Licence Conditions regarding tariffs.”
The NCC’s decision reinforced its stance against price increments without following due process, ensuring that international companies comply with Nigerian laws.
This 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.
Launched in Nigeria in January 2023, the country became the first African country to receive the Starlink internet service, after SpaceX met with the Nigerian Communications Commission to outline their deployment plans.
As of September 2023, just eight months after its launch, Starlink gained 11,207 active subscribers in Nigeria, according to data from the NCC for the third quarter of 2023.
This rapid growth positioned Starlink as the fourth largest Internet Service Provider in the country. By the fourth quarter of 2023, Starlink’s active customer base in Nigeria surged to 23,897, elevating the company to the third leading ISP in Nigeria.