Shortly after declaring its intention to impose sanctions on Starlink for unauthorized subscription price increases in Nigeria, the Nigerian Communications Commission (NCC) has retracted its earlier statement, admitting that it was mistakenly issued.
The NCC did not provide specific details on whether the retraction was due to Starlink obtaining the necessary regulatory approval or if the initial announcement was simply a clerical oversight. The commission’s new press release succinctly stated, “Kindly note this press statement was issued in error. It is hereby withdrawn, if published, kindly bring it down.”
This turn of events follows a report where telecom industry stakeholders criticized the NCC for perceived double standards, accusing the regulator of allowing the satellite internet company owned by Elon Musk to implement price hikes while restricting local telecom operators from adjusting their tariffs.
Starlink had recently escalated its monthly subscription fees in Nigeria by 97%, taking the standard residential plan from ₦38,000 to ₦75,000, citing “excessive inflation” as the reason for the surge. The NCC had initially responded by stating that it had not sanctioned the price increase by Starlink, raising questions about the company’s adherence to local regulatory requirements.
Dr. Reuben Muoka, the NCC’s Director of Public Affairs, pointed out that Starlink’s pricing actions were in violation of Sections 108 and 111 of the Nigerian Communications Act, 2003. These sections empower the Commission to oversee 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 had commented. He also stressed that the NCC would enforce necessary measures to ensure industry stability and regulatory compliance.
The NCC’s initial stance to penalize Starlink was a clear message against price changes without due process, emphasizing the need for international companies to abide by Nigerian regulations. However, with the retraction of the statement, the situation remains ambiguous, particularly for local Nigerian telecom companies that have been seeking permission for tariff increases.
The controversy surrounding Starlink’s pricing comes amid calls from local telecom operators, represented by ALTON and ATCON, for a tariff revision to align with the economic pressures of inflation and rising operational costs. In August 2024, the NCC issued a directive requiring telecom companies to provide subscribers with comprehensive information, including all tariff components and conditions.
Subsequently, Nigerian telecom operators expressed intentions to adopt a load-shedding strategy to sustain operations while advocating for a tariff hike due to escalating financial burdens. While acknowledging the difficult operating environment, the NCC viewed the operators’ complaints about economic conditions impacting service quality as a tactical approach.
By upholding the provisions of the Nigerian Communications Act, the NCC’s objective is to prevent unauthorized price increases and to ensure that all telecom operators, both domestic and international, are held to the same regulatory standards.
