Elon Musk’s Starlink has temporarily halted orders for its residential kits across Nigeria. The suspension follows the company’s effort to secure approval from the Nigerian Communications Commission (NCC) for a price increase announced earlier.
Why Starlink Halted Residential Orders
Starlink is known for delivering high-speed internet services globally, including in Nigeria. The recent suspension of its residential kits is linked to regulatory issues regarding a price increase. The company cited “excessive inflation” as the reason for raising its monthly subscription fees from ₦38,000 to ₦75,000 and hardware costs from ₦440,000 to ₦590,000.
Starlink announced:
“We’re committed to providing high-speed internet in Nigeria and are working closely with regulators to make adjustments that will improve the customer experience.”
While residential orders are on hold, the company continues to offer its high-end Business Plan at ₦159,000 per month.
Soaring Demand for Starlink in Nigeria
Since the launch of Starlink in Nigeria in January 2023, it has gained immense popularity. In some cities, the service has even sold out. The demand reflects the country’s growing need for reliable internet connectivity, especially in underserved areas.
This trend is not exclusive to Nigeria. In Harare, Zimbabwe, Starlink kits were sold out just two months after the service became available.
Regulatory Challenges with NCC
Starlink’s pricing adjustments drew sharp criticism from the Nigerian telecom sector. Local operators accused the NCC of permitting Starlink to increase prices while denying similar requests from domestic providers.
In response, the NCC stated that Starlink’s price changes violated Sections 108 and 111 of the Nigerian Communications Act, 2003, which require regulatory approval for tariff adjustments.
Dr. Reuben Muoka, NCC’s Director of Public Affairs, announced:
“The Commission has commenced pre-enforcement actions against Starlink for implementing price increments without approval.”
The Future of Starlink in Nigeria
Starlink has temporarily rolled back its price increase pending NCC approval. However, the company warns that without regulatory support, its ability to continue providing services in Nigeria is uncertain.
Despite these challenges, Starlink’s commitment to delivering high-speed internet remains strong. The ongoing discussions with the NCC could shape the future of internet connectivity for millions of Nigerians.
