Elon Musk’s satellite internet provider, Starlink, has suspended orders for its residential internet kits across Nigeria, citing the need to secure approval from the Nigerian Communications Commission (NCC) for a price increase announced earlier this year.
The suspension, which affects all new residential orders, will remain in place until the company receives regulatory approval for the new pricing structure.
In a statement, Starlink emphasised its commitment to providing high-speed internet services in Nigeria, noting that the company is working closely with regulators to adjust pricing in a way that improves customer experience.
The company clarified that while residential plans are temporarily on hold, orders for its high-end Business Plan are still being accepted. This plan, which offers faster service, is priced at N159,000 per month significantly higher than the Residential Plan, which previously cost N38,000 per month.
“We’re committed to providing high-speed internet in Nigeria and are working closely with regulators to make adjustments that will improve the customer experience. Until these changes are approved, we are placing new Residential orders on hold,” Starlink stated.
The suspension follows a controversial price hike announced by the company in late September, when Starlink raised its monthly subscription fee by 97%, from N38,000 to N75,000. Additionally, the cost of Starlink’s hardware (the satellite dishes) was increased by 34%, from N440,000 to N590,000. The company cited “excessive inflation” as the reason behind the price hikes.
However, the increase has sparked backlash from both local telecom operators and regulators. The NCC has pointed out that Starlink’s decision to raise prices without prior approval violates sections of the Nigerian Communications Act, 2003, and goes against the terms of its operating license.
The regulator responded by initiating pre-enforcement actions against the company, insisting that Starlink had not received approval for the price adjustments.
In a further development, Starlink had previously stopped accepting new orders in five major Nigerian cities—Lagos, Abuja, Port Harcourt, Benin City, and Warri—due to capacity limitations in those areas.
However, the recent nationwide suspension is linked directly to the ongoing regulatory dispute over the price hike.
The company’s price increase has also drawn attention outside Nigeria. Starlink’s terminals in Zimbabwe’s capital, Harare, sold out just weeks after the company received regulatory approval to operate in the country.
Despite the challenges, Starlink remains a popular choice for internet users in Nigeria, with demand surging since its launch in the country in January 2023. The company’s satellite internet service offers an alternative to traditional broadband, particularly in areas with limited infrastructure.
The situation reflects a larger debate about regulation in Nigeria’s telecom sector, as local operators have long complained about being unable to raise prices despite inflationary pressures, while foreign companies like Starlink seem to be able to adjust their pricing freely.
The outcome of Starlink’s negotiations with the NCC will likely have significant implications for both the company and the broader telecommunications landscape in Nigeria.
