Breaking: NCC to sanction Starlink for increasing subscription price in Nigeria without approval

The Nigerian Communications Commission (NCC) has said it would sanction Elon Musk’s internet company, Starlink, for increasing its subscription price in Nigeria without approval from the regulator.

This followed a report published on Sunday by Nairametrics in which stakeholders had accused the telecom regulator of double standard for allowing the price increment while disallowing local telecom operators from increasing their tariffs.

However, in response to this publication’s inquiry on the matter, the Commission’s Director of Public Affairs, Dr. Reuben Muoka, said the NCC did not approve Starlink’s price increment.

According to him, Starlink’s action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.

NCC is surprised 

Muoka in in his response said the telecom regulator was also surprised by the price increment implemented by Starlink.

“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission. 

“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision. 

“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs. 

 “The Commission will therefore take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry,” the DPA stated.  

Backstory 

Starlink last week increased monthly subscription for its internet service in Nigeria by 97% from N38,000 to N75,000.

• For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.

• The company in a message to its customers in Nigeria cited “excessive inflation” as the reason for the increment.

• Meanwhile, telecom operators in the country under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have been clamoring for tariff review.

• According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.

• However, the NCC and indeed the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have dismissed the calls by the operators, urging them to explore innovative solutions to counter inflationary pressures and high operating costs.

What you should know 

Section 108 of the Nigerian Communications Act 2003 (NCA) gives NCC the authority to regulate telecom tariffs. The Act stipulates that no NCC licensee can charge for services until the NCC approves the tariff rates and charges.

“Holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part,” the Act stated. 

Section 111 of the Act also states the Commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the NCC for the provision of any of its services, notwithstanding any other provision of the law.