NCC Initiates Pre-Enforcement Action Against Starlink Over Price Hike

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Source: Starlink

In a recent press release by Reuben Muoka, Director of Public Affairs at the Nigerian Communications Commission (NCC), the Commission has announced the commencement of pre-enforcement actions against Starlink, the satellite internet provider owned by SpaceX. This follows Starlink’s unilateral decision to raise its subscription fees in Nigeria without obtaining the necessary regulatory approval.

Muoka highlighted that Starlink’s price increase, implemented before receiving approval from the NCC, was premature. He stated, “The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the NCC.”

Starlink’s Price Increases in Nigeria

The controversy arose after Starlink announced substantial price increases in its Nigerian market, raising the standard service subscription by 97%. This adjustment increased the monthly fee from NGN 38,000 (USD 22.8) to NGN 75,000 (USD 50). In addition, the mobile regional (roam unlimited) plan, which allows customers to use their Starlink kits outside their home or office within Nigeria, rose from NGN 49,000 (USD 29.4) to NGN 167,000 (USD 100) per month. The mobile global roaming service has also seen a significant price surge, now priced at NGN 717,000 (USD 429.5) monthly. New Starlink kits have also experienced a price hike, increasing from NGN 440,000 (USD 263.6) to NGN 590,000 (USD 353.4).

Existing customers are expected to begin paying these revised rates starting October 31st, while new subscribers are subject to the changes immediately.

Regulatory Implications and Nigerian Communications Act (NCA) 2003

According to the NCC, Starlink’s actions violate Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003. These sections clearly outline the procedures for tariff adjustments and emphasise the importance of regulatory oversight to protect consumers and maintain market stability.

  • Section 108 of the NCA mandates that all telecommunications operators must obtain prior approval from the NCC before adjusting any tariffs. This provision ensures that pricing changes are fair and aligned with the broader objectives of fostering competition and safeguarding consumer interests.
  • Section 111 requires licensees to provide accurate tariff information to the public and the Commission before implementing any changes. This allows the NCC to assess whether the adjustments are justifiable and in compliance with regulatory standards.

By not adhering to these provisions, Starlink risks undermining the regulatory stability of the telecommunications sector in Nigeria. The NCC has committed to enforcing compliance, stating it “has commenced pre-enforcement action on Starlink since October 3, 2024.”

Awaiting Starlink’s Response

As the NCC takes steps to address Starlink’s pricing actions, there is growing anticipation around how Starlink will respond to these regulatory challenges. The satellite provider has yet to release an official statement on how these developments will impact its pricing structure or overall operations in Nigeria, one of its most significant markets in Africa.

The outcome of this regulatory standoff is expected to influence the future of Starlink’s services in Nigeria and could set a precedent for other global satellite providers operating in the region.