Starlink, an internet connectivity provider, has announced a significant increase in its subscription and equipment prices in Nigeria. The new pricing has elicited discontent among users and regulators.
Starlink's Price Increase
Starlink revealed that the monthly subscription price in Nigeria will rise by 100%. The cost of the standard 'Residential' package will increase from 38,000 naira to 75,000 naira. Additionally, the router's price will be raised from 440,000 naira to 590,000 naira. These changes will take effect on January 27, 2025. The company attributes the price hike to the need for infrastructure investments to enhance service quality.
Regulatory Response
The Nigerian Communications Commission (NCC) stated that Starlink did not obtain the necessary approval for the price increase, which violates their licensing conditions. Dr. Reuben Muoka, the Director of Public Affairs, mentioned that the company's actions are contrary to provisions in the Nigerian Communications Act. In response, Starlink temporarily suspended the price hike and planned to refund customers who paid the increased rate.
Starlink's Pricing History
Starlink has repeatedly adjusted its pricing strategies in Nigeria. Previously in 2023, they reduced equipment prices, which was well-received. The initial entry into the Nigerian market was in January 2023 with prices quoted in dollars. In March, they significantly raised costs due to the naira's devaluation but reduced prices when the currency's value improved.
The current situation with Starlink's price increase in Nigeria highlights the complex relationship between corporate interests and the regulation of communication services. It remains unclear whether Starlink will receive the necessary approvals from the NCC to implement the new prices, but the possibility of service discontinuation remains a concern.
