The Nigerian Communications Commission (NCC) has reserved its previous announcement about the Starlink subscription fee increase, which suggested potential sanctions for the network provider. This reversal follows the commission’s decision, which was announced recently, in which it claimed it was preparing to enforce measures against the internet provider company for raising its subscription prices without obtaining the necessary approval from the regulator. At first, they voiced concern over Starlink’s independent choice to raise its subscription fees, pointing out that the company had not obtained the necessary regulatory clearance.
Moreover, the commission noted that this increase violated Sections 108 and 111 of the Nigerian Communications Act of 2003 and the terms of Starlink’s license related to tariff modifications. However, in a surprising turn, the NCC has retreated from its earlier decision. In an updated statement, Dr. Reuben Muoka, the Director of Public Affairs for the NCC, confirmed that the earlier notice was too soon and was incorrect. He regretted the misunderstanding and any trouble the commission’s previous position may have caused, requesting that news outlets retract the original statement.
News platforms were asked to remove the earlier statement from their sites.
Dr. Muoka clarified that there was no intention to act against the company then and labelled the communication as a mistake. He urged all media platforms that had disseminated the earlier announcement to retract it, emphasising that the NCC prioritises a consistent regulatory framework while encouraging Investment prospects in the telecommunications industry. However, this change in direction raises questions regarding the reasoning behind the regulator’s decision to withdraw its previous statement, particularly after confirming that the company breached the set regulations.
In the original statement, they expressed surprise at Starlink’s conduct, considering that the firm had submitted a proposal for a rate modification, which the commission had not sanctioned before the company executed the alterations. Nonetheless, the commission appears to have relaxed its position, which has confused the public and industry stakeholders regarding the reliability of its enforcement measures. Looking back, the debate over their recent price increase follows the company’s decision to elevate its subscription rates nationwide, attributing this move to “significant inflation.”
Industry leaders have called for a review and adjustment of tariffs.
Under the revised pricing model, the monthly subscription fee jumped from ₦38,000 to ₦75,000, equivalent to a 97% rise. Additionally, for new users, the price of the Starlink hardware kit increased by 34%, from ₦440,000 to ₦590,000. Key players in the industry, especially those affiliated with the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have long advocated reassessment of tariffs. They contend that the telecom industry has failed to update its pricing in light of increasing Inflation and multiple economic difficulties faced by the country.
These organisations argue that tariff assessments should reflect the wider economic conditions impacting all companies. They have consistently emphasised that various sectors have modified their pricing, whereas the industry remains under the same pricing model despite increasing inflation. In response to the calls for tariff changes, the NCC and Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, have encouraged local service providers to explore inventive strategies to lessen Inflationary Pressures instead of advocating for higher rates. The commission insists that the present economic situation requires creative solutions and has rejected the operators’ requests for an official reassessment of telecom tariffs.
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However, the circumstances surrounding Starlink have highlighted the importance of uniform regulation. The commission’s choice to retract its threat of sanctions has prompted certain observers to wonder if the NCC treats international operators differently from local players. Stakeholders initially raised concerns about this inconsistency, stating that local telecom companies encountered regulatory pushback when suggesting comparable price increases, whereas the commission reacted differently to Starlink’s independent decision. As the sector progresses in the face of economic challenges, it becomes essential for them to uphold clarity and uniformity in their regulatory system.