Starlink, a satellite internet service provided by Elon Musk's company, has temporarily suspended accepting orders for its residential kits in Nigeria. This suspension is in effect until Starlink receives approval from the Nigerian Communications Commission (NCC) for a recently announced price increase.
In the interim, Starlink continues to accept orders for its premium Business Plan, which has a monthly subscription fee of N159,000. This is in contrast to the Residential Plan, which is priced at N38,000 per month.
“We’re committed to providing high-speed internet in Nigeria and are working closely with regulators to make adjustments that will improve the customer experience.
“Until these changes are approved, we are placing new Residential orders on hold,” the company stated in response to an attempt to order its kits.
However, the current suspension cuts across Nigeria and it is hinged on the need to increase prices, a move that the regulator had frowned at.
Demand for Starlink services in Nigeria has soared since the Space X-linked company officially launched in the country in January last year.
Nairametrics learned that the rush for Starlink is not only in Nigeria as the company’s terminals are currently sold out in Zimbabwe’s capital of Harare, less than two months after receiving permission from authorities to operate in the southern African nation.
Starlink had on the last day of September announced a 97% price increase for its monthly subscription from N38,000 to N75,000.
For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.
Starlink has reached capacity in several cities.
Recent reports indicate that Starlink has halted new orders in five major cities: Lagos, Abuja, Port-Harcourt, Benin City, and Warri, due to reaching its service capacity in these locations.
In a communication to its Nigerian customers, the company attributed the price increase to "excessive inflation." This announcement has led to significant debate within the Nigerian telecommunications sector, as local operators have accused the Nigerian Communications Commission (NCC) of inconsistency for permitting Starlink to raise prices while denying similar requests from them despite numerous appeals.
In response, the NCC clarified that it did not authorize Starlink's price increase. The regulator emphasized that Starlink's actions violated Sections 108 and 111 of the Nigerian Communications Act of 2003, as well as its licensing conditions concerning tariffs.
Dr. Reuben Muoka, the NCC's Director of Public Affairs, later revealed that the Commission had initiated pre-enforcement actions against Starlink for implementing price hikes without regulatory approval.
Following the NCC's statement, Starlink retracted its planned price increase, cautioning that "without these approvals, our ability to continue delivering service is at risk." The company reaffirmed its commitment to providing high-speed internet in Nigeria but indicated that it requires regulatory support to enhance customer experience.