Starlink Increases Subscription Prices in Nigeria Amid Inflation
Starlink, the satellite internet provider owned by SpaceX, has announced a significant price increase for its services in Nigeria, raising monthly subscription fees by 97%. The standard service subscription has increased from NGN 38,000 (USD 22.8) to NGN 75,000 (USD 50) monthly. Additionally, the mobile regional (roam unlimited) plan, which allows customers to use Starlink kits beyond their home or office within Nigeria, increased from NGN 49,000 (USD 29.4) to NGN 167,000 (USD 100) monthly. In contrast, the mobile global roaming service is now priced at NGN 717,000 (USD 429.5) monthly. New Starlink kits have also experienced a price hike of 34%, rising from NGN 440,000 (USD 263.6) to NGN 590,000 (USD 353.4). Existing customers will begin paying these new rates starting October 31st, while new subscribers are immediately subject to the revised pricing.
In its communication with customers, Starlink cited excessive inflation in Nigeria as the primary driver behind price increases.
How Starlink’s Price Hikes Impact Affordability for Existing and New Customers
Starlink’s increased pricing places its services in a similar range to other high-speed fixed broadband options in Nigeria. A comparative analysis conducted by Space in Africa shows that the median monthly subscription fee for six fixed broadband providers that offer services matching Starlink’s 1,000 GB fair usage policy (FUP) data volume hovers around NGN 74,521, just below Starlink’s new monthly fee of N75,000. This demonstrates that, despite the steep increase, Starlink’s pricing remains competitive within the high-speed broadband market.
In addition, a report by Space in Africa analysing Starlink’s affordability and adoption in Nigeria found that Starlink’s total cost of ownership (TCO), which includes the one-time hardware purchase and monthly fees, is higher than most traditional broadband options. The TCO for high-end fixed broadband plans in Nigeria typically ranges from NGN 600,000 to NGN 1,200,000. While Starlink’s TCO initially appears higher due to its high hardware cost, the relatively close monthly subscription fees compared to fixed broadband plans narrow the gap over extended periods.
This suggests that while Starlink requires a larger upfront investment, its long-term affordability becomes more appealing, particularly for customers who value consistently high internet speeds and those in remote or underserved areas lacking access to traditional broadband infrastructure.
Read the complete analysis of Starlink's affordability and adoption in Nigeria, Kenya, and Rwanda.
Starlink’s Affordability and Adoption Dynamics
Although there is no public data on the demographics of Starlink users in Nigeria, Space in Africa’s cost-viability analysis indicates that Starlink adoption is more prevalent in urban areas and among higher-income individuals. The service’s relatively high costs align with the spending capacity of these demographics, where higher disposable incomes make Starlink more accessible.
As Starlink continues to expand its network and potentially refines its pricing strategies, the service could reach a broader range of customers in Nigeria. However, the current economic situation and significant upfront hardware costs make Starlink less affordable for low- and middle-income households.
The Impact of Economic Conditions
Starlink’s price increases are directly tied to Nigeria’s economic conditions, particularly inflation. Should the naira gain strength against the dollar, it could reduce Starlink’s pricing, making it more accessible to a broader population segment. Until then, Starlink’s high costs may limit its adoption to those in urban centres with higher incomes despite its superior performance and extensive coverage.
In conclusion, while Starlink’s pricing adjustments have aligned it with other high-speed broadband services in Nigeria, its affordability remains challenging for many, particularly those in lower-income brackets. Nonetheless, its continued expansion into underserved areas could offer a vital solution for reliable, high-speed internet in regions lacking traditional broadband infrastructure.