On Tuesday, October 8, the Nigerian Communications Commission (NCC) announced it was withdrawing its earlier threat to sanction Starlink for raising its subscription prices in Nigeria without approval.
The NCC clarified that the initial statement was issued in error but did not explain whether Starlink has since received regulatory approval or if it was merely a clerical mistake.
In a new statement, the NCC said, “Kindly note this press statement was issued in error. It is hereby withdrawn; if published, kindly bring it down.”
This decision comes after telecom stakeholders accused the NCC of double standards, allowing the satellite internet provider to increase prices while preventing local telecom companies from raising their tariffs. Starlink recently raised its monthly fees by a staggering 97%, increasing the standard residential plan from ₦38,000 to ₦75,000, citing “excessive inflation” as the reason.
Previously, the NCC expressed that it had not approved Starlink’s price hike, which raised questions about the company’s compliance with local regulations. Dr. Reuben Muoka, NCC’s Director of Public Affairs, noted that Starlink’s actions seemed to violate the Nigerian Communications Act, which grants the NCC authority over telecom tariffs.
“We were surprised that the company unilaterally adjusted its prices after submitting a request for approval, which the Commission was yet to decide on,” Muoka stated. He emphasized that the NCC is committed to maintaining industry stability and ensuring compliance.
The NCC’s initial decision to penalize Starlink reflected its commitment to regulating price changes and ensuring that all companies, including international ones, follow Nigerian laws. However, now that the threat has been retracted, it leaves uncertainty for other Nigerian telecom companies that have been seeking tariff increases.
This situation arises as local telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have been pushing for a review of tariffs to better align with rising inflation and operational costs.
In August 2024, the NCC issued guidelines requiring telecom companies to provide subscribers with clear information about all tariff components and conditions. Soon after, some operators hinted at a load-shedding strategy to manage financial pressures while advocating for increased tariffs.
The NCC has acknowledged the difficult operating environment but views operators’ claims about economic conditions affecting service quality as part of their strategy. By enforcing the Nigerian Communications Act, the NCC aims to prevent unapproved price hikes and ensure that all telecom operators, both local and foreign, adhere to the same standards.
