By Chinenye Anuforo
The Nigerian Communications Commission (NCC) has expressed its disapproval of Starlink’s recent decision to unilaterally increase its subscription packages without obtaining the necessary regulatory approval.
Last week, Starlink announced a significant price hike of 97.36 per cent for its residential users in Nigeria, citing the country’s rising inflation. The new pricing, effective October 31, 2024, for existing customers, has sparked widespread concern among local internet service providers (ISPs), who have been denied price increase requests by the NCC for over two years due to foreign exchange shortages, inflation, and other economic challenges.
The stakeholders interviewed by Daily Sun lamented the implementation of the new price by Starlink in Nigeria under the watch of NCC is an insult to local operators, who continue to invest all their resources in the country to expand telecom service but are not permitted to review their prices despite the rising costs of operation.
However, in a telephone conversation with Daily Sun, the NCC spokesperson, Mr. Reuben Muoka stated that the NCC was taken aback by Starlink’s preemptive announcement of price changes, given that the company had only recently submitted a request to the Commission seeking approval for tariff adjustments. The Commission noted that a decision on this request was yet to be communicated.
He said, “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 NCC highlighted that Starlink’s actions appear to be in violation of Sections 108 and 111 of the Nigerian Communications Act, 2003, as well as the company’s License Conditions pertaining to tariffs.
To ensure the regulatory stability of the telecommunications industry, the NCC has vowed to take appropriate enforcement measures against any licensee that engages in actions that could undermine this stability.
“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”, Muoka stated.