The Nigerian Communications Commission (NCC) has found Starlink guilty of breaching part of the Nigerian Communications Act (NCA) 2003.
This is after the satellite internet company announced an increment in subscriptions before the regulator granted approval. According to sources close to the matter, Starlink will get a letter detailing its sanction from the regulator this week.
“They submitted a request but went ahead before it was granted,” one source said. However, the satellite company, which has three landing stations in the country, is expected to respond, which will inform regulatory steps.
“These things take time,” another source added.
However, Starlink has reversed its monthly subscription price hike to N38,000 after raising it by 97.37 percent to N75,000. This is weeks after the NCC said it did not approve satellite internet providers’ upward review of subscription packages.
Read also: Starlink reverses monthly subscription fee to N38,000
“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Communications Act (NCA) 2003 and Starlink’s Licence Conditions regarding tariffs,” the regulator said in a now-withdrawn statement.
Starlink blamed rising inflation for the spike. “Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below: Standard (Residential) N75,000; mobile – regional (roam unlimited): N167,000; mobile – global (global roam): N717,000),” it said.
The new prices were supposed to take effect for old customers on October 31. Starlink’s price hike led to an uproar in the telecoms industry, which is seeking permission to implement new tariff prices for the first time in 11 years.