Starlink, Elon Musk’s satellite internet constellation, has announced a significant price increase for its services in Nigeria, raising monthly subscription fees by a staggering 97%. This move comes as a surprise to many, especially considering the company’s recent price reduction for its hardware in the country just last year, and its push to make its services more accessible in other African markets like Kenya.
In an email sent to customers on Tuesday morning, Starlink cited “excessive levels of inflation” as the reason for the price hike. The new subscription rates, which take effect immediately for new customers and from October 31st for existing customers, are as follows:
- Standard (Residential): N75,000 (previously N38,000)
- Mobile- Regional (Roam Unlimited): N167,000 (previously N49,000)
- Mobile – Global (Global Roam): N717,000
This price increase comes despite Starlink gaining significant traction in Nigeria, where it has been lauded for providing high-speed internet access to underserved areas. The company’s initial entry into the Nigerian market was met with enthusiasm, with many viewing it as a solution to the country’s persistent internet connectivity challenges.
However, this latest move has sparked concerns about affordability and accessibility, particularly for those who rely on Starlink for essential services. The substantial increase in subscription fees could potentially price out many Nigerians, hindering the company’s efforts to bridge the digital divide in the country. This contrasts sharply with Starlink’s recent strategy in Kenya, where the company introduced the Starlink Mini, a more affordable and portable version of its service, aiming to increase accessibility and affordability.
This isn’t the first time Starlink has adjusted its prices in Nigeria. In October 2023, the company reduced the price of its hardware kits by a significant margin, making it more accessible to a wider range of consumers. This move was widely welcomed and contributed to Starlink’s growing popularity in the country.
The company’s decision to increase subscription fees now, despite the previous price reduction and its contrasting approach in Kenya, raises questions about its long-term strategy in Nigeria. While inflation is a legitimate concern, the magnitude of the price hike has left many wondering if Starlink is prioritizing profitability over accessibility.
Starlink’s price increase in Nigeria is not an isolated incident. The company has also implemented price adjustments in other parts of Africa and globally, citing similar reasons. This trend has caused a stir across the continent, with many questioning the sustainability of Starlink’s pricing model in emerging markets.
It remains to be seen how this price increase will impact Starlink’s growth and adoption in Nigeria. While the company’s service remains a viable option for those seeking reliable high-speed internet, the increased cost could deter potential customers and force existing users to explore alternative solutions.
