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NEWS

NCC sanction Elon Musk’s starlink over unauthorized price hike

October 8, 2024 • 2 min read

October 08, 2024

By Samuel Ogunsona

The Nigerian Communications Commission (NCC) has vowed to take action against Elon Musk’s Starlink for increasing its subscription prices in Nigeria without obtaining regulatory approval.

This move comes after stakeholders accused the NCC of applying double standards, allowing Starlink’s price hike while denying local telecom operators the same privilege.

According to Reuben Muoka, NCC’s Director of Public Affairs, Starlink’s action contravenes Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.

The NCC expressed surprise that Starlink went ahead to announce price changes, despite submitting a request for such increase, which has not been approved.

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 price hike includes a 97% increase in monthly subscription from N38,000 to N75,000, and a 34% increase in the price of Starlink kits (hardware) from N440,000 to N590,000.

Starlink cited “excessive inflation” as the reason for the increment.

The NCC warned that it will take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry.

Local telecom operators, under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been pushing for a tariff review, arguing that the telecom industry is the only sector that hasn’t adjusted prices despite rising inflation and economic pressures

“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,” it was noted.