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Starlink Halts Planned Subscription Hike in Nigeria Amid Regulatory Challenges

Written by Jerry Alomatu on October 25, 2024

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Starlink, the satellite internet provider owned by Elon Musk’s SpaceX, has announced a temporary halt to its recent decision to raise monthly subscription fees for users in Nigeria. The announcement was made on Thursday as the company seeks to resolve regulatory issues.

In a communication to its subscribers, Starlink, which ranks as Nigeria’s third-largest internet service provider, explained that the suspension of the price increase is part of its efforts to navigate regulatory challenges. The company assured customers who had already been charged the increased rate that they would receive a credit on their accounts.

“Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service. Today, we are temporarily suspending this price increase as we navigate regulatory challenges. We remain committed to providing high-speed internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience. Without these approvals, our ability to continue delivering service is at risk,” the statement read.

The company had previously boosted its monthly fee from N38,000 to N75,000, representing a staggering 97% increase. This steep rise in costs sparked significant backlash from subscribers, many of whom expressed concerns over affordability. Additionally, the installation kit for new subscribers saw a price jump of 34%, escalating from N440,000 to N590,000.

The Nigerian Communications Commission (NCC) had recently retracted a statement regarding Starlink’s operations, clarifying that it had been issued in error. In a message directed at media outlets, the NCC urged editors to retract any published articles related to the erroneous statement, stating, “Kindly note that this press statement on Starlink was issued in error. It is hereby WITHDRAWN. If already published, kindly BRING DOWN.”

In response to Starlink’s pricing decisions, the Association of Licensed Telecommunication Companies of Nigeria (ALTON), led by Chairman Gbenga Adebayo, condemned the increases, characterizing them as a “regulatory affront” and calling for compliance with local laws.

Despite these setbacks, Starlink reiterated its commitment to offering high-speed internet services in Nigeria, emphasizing its resolve to enhance customer experience. The company also reminded users that they have the option to cancel their subscriptions if they choose to do so.