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NCC to Sanction Elon Musk’s Starlink Over Unapproved Price Increase

info@dailymailngr.com by info@dailymailngr.com
October 8, 2024
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The Nigerian Communications Commission (NCC) has announced plans to sanction Elon Musk’s satellite internet service, Starlink, for raising its subscription prices in Nigeria without regulatory approval. This was revealed in a statement issued by the NCC’s Director of Public Affairs, Reuben Muoka, on Tuesday.

Last week, Starlink informed its customers of a significant price increase, affecting both existing and new users. The monthly subscription fee was hiked by 97%, from N38,000 to N75,000, while the cost of the Starlink kit, required for installation, was raised by 34%, from N440,000 to N590,000.

However, the NCC clarified that it had not authorized these price changes. “Starlink’s decision to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka stated. He further noted that the commission was “surprised” by the price hike, as Starlink had submitted a request for price adjustment that was still under review.

Muoka emphasized that Starlink’s actions violate Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, which governs tariff regulations and licensee obligations. “The commission will take appropriate enforcement measures against any action by a licensee that undermines the regulatory stability of the telecommunications industry,” he added.

Under Section 108 of the NCA 2003, the NCC has the authority to regulate telecom tariffs, requiring approval before any changes are implemented. Section 111 also grants the commission the power to impose financial penalties on licensees that exceed approved tariffs.

“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 stipulates.

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