The Nigerian Communications Commission (NCC) has revealed its intention to take enforcement action against Elon Musk’s Starlink, a satellite internet provider, for increasing its subscription prices in Nigeria without regulatory approval.
This information was shared in a statement on Tuesday by Reuben Muoka, the commission’s Director of Public Affairs.
Last week, Starlink notified its customers about the price hike, which will impact both current and new subscribers.
The monthly subscription fee has jumped by 97%, rising from N38,000 to N75,000.
Moreover, the cost of the Starlink kit (the equipment needed for installation) has increased by 34%, with the new price now set at N590,000, up from the previous N440,000.
Despite these changes, the NCC clarified that it had not authorized the price adjustments.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka said.
He stated that the commission was “surprised” when the company announced the price changes, even though it had submitted a request to the NCC for a price adjustment that had not yet been approved by the regulator.
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 grants the NCC the power to regulate telecommunications tariffs, specifying that no licensee is allowed to implement service charges without securing tariff approval from the commission.
Furthermore, Section 111 of the Act authorizes the NCC to enforce financial penalties on any licensee that surpasses the approved tariffs, irrespective 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.