The Nigerian Communications Commission (NCC) has announced its intention to take enforcement action against Elon Musk’s satellite internet service, Starlink, for increasing subscription prices in Nigeria without the regulator’s approval.
This was revealed in a statement issued by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.
In a message sent to its customers last week, Starlink indicated that the price increase would impact both existing and new subscribers.
The monthly subscription fee has risen by 97%, from N38,000 to N75,000.
Additionally, new users will now pay a higher price for the Starlink kit (the necessary hardware for installation), which has increased to N590,000, a 34% rise from the previous price of N440,000.
However, the NCC emphasized that it had not authorized this price hike.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka said.
He explained that the commission was “surprised” when the company announced the price changes, despite having filed a request with the NCC for a price adjustment, which the regulator had yet to approve.
He added, “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 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.”
Section 108 of the NCA 2003 gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.
Additionally, Section 111 of the Act empowers the NCC to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.
“Notwithstanding any other provision of this Act, 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 commission for the provision of any of its services,” the Act read.