NCC to sanction Elon Musk’s Starlink for unauthorised price hike

The Nigerian Communications Commission has announced plans to take enforcement measures against Elon Musk’s satellite internet service, Starlink, for raising its subscription prices in Nigeria without the regulator’s approval.

This was disclosed in a statement issued by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.

In a message sent to its customers last week, Starlink said the price hike would affect both existing and new customers.

The monthly subscription fee was increased by 97%, from N38,000 to N75,000.
Additionally, new users will face a higher cost for the Starlink kit (the hardware needed for installation), which is now priced at N590,000, up 34% from the previous price of N440,000.

However, the NCC stated that it had not approved the price increase.

“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka said.
He explained that the commission was “surprised” when the company announced the price changes, despite having filed a request with the NCC for a price adjustment, which the regulator had yet to approve.

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 gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.

Additionally, Section 111 of the Act empowers the NCC to impose financial penalties on any licensee that exceeds approved tariffs, regardless 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.