NCC withdraws sanction on Starlink, cites communication error

Joy Agwunobi 

The Nigerian Communications Commission (NCC) has officially withdrawn its earlier announcement regarding sanctions against Elon Musk’s satellite internet service, Starlink.

In a brief statement, the NCC admitted that the press release concerning the sanctions was issued in error and has now been retracted.

This follows the Commission’s initial plans to penalise Starlink for raising its subscription prices without regulatory approval. However, the reasons behind the NCC’s sudden reversal remain unclear, despite the regulator previously stating that the company violated its regulations by implementing the tariff hike without authorisation.

The  NCC had initially announced that  Starlink, is facing potential sanctions due to the recent increase in subscription prices in Nigeria without seeking or receiving the necessary approval from the regulatory body.

Reuben Muoka, the NCC’s director of public affairs, in the retracted statement expressed the regulatory body’s dismay over Starlink’s decision to unilaterally increase subscription fees for its satellite internet service in Nigeria without seeking prior approval.

The controversy surrounding Starlink’s price hike was ignited last week, when the company informed its customers that both new and existing users would be affected by the increased subscription fees.

As revealed by the recent changes implemented by Starlink, its monthly subscription fee rose by 97 percent, from N38,000 to N75,000.

Moreover, the price of the Starlink kit, an essential component for installation, experienced a significant 34 percent increase, escalating from N440,000 to N590,000.

Against the backdrop of the recent calls made by local telecom operators, including  Association of Licensed Telecommunications Operators of Nigeria (ALTON) and and the Association of Telecommunications Companies of Nigeria  (ATCON), for a review of tariffs in the sector, Starlink’s price increase for its satellite internet services in Nigeria has raised eyebrows among industry stakeholders and regulators.

The telecom operators had previously expressed their concerns over the economic challenges, particularly inflation, faced by the sector, emphasising that despite these challenges, the telecom industry remains the only sector that has not revised its prices to align with the current economic realities.

However, while these operators have been lobbying for a review, the NCC has consistently urged them to adopt more innovative strategies to mitigate the impact of inflation and rising operational costs rather than resorting to price increases.

The ongoing tariff review discussions, alongside Starlink’s price hike, shows  the financial pressures faced by both consumers and operators in Nigeria’s telecommunications sector.