November 20, 2024 – Starlink, the satellite internet service by Elon Musk’s SpaceX, has temporarily suspended new orders for its residential kits in Nigeria. The decision comes as the company awaits approval from the Nigerian Communications Commission (NCC) for a proposed price adjustment.
Service Suspension and Price Adjustments
In a message to prospective customers attempting to place new orders, Starlink stated:
“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.”
This suspension applies solely to Starlink’s Residential Plan, priced at ₦38,000 per month, while the premium Business Plan, costing ₦159,000 per month, remains available.
The move follows Starlink’s recent attempt to increase its monthly subscription fee for the Residential Plan by 97%, from ₦38,000 to ₦75,000, citing inflationary pressures. Additionally, the cost of its hardware kits rose from ₦440,000 to ₦590,000, a 34% increase.
Regulatory Challenges
The NCC opposed the price adjustments, stating that they violated the Nigerian Communications Act, 2003, and Starlink’s licensing terms. The Commission initiated enforcement actions against the company for implementing tariff changes without regulatory approval.
In response to NCC’s actions, Starlink has suspended the proposed price increase, acknowledging that regulatory compliance is essential for sustaining its operations in Nigeria. The company warned that “without these approvals, our ability to continue delivering service is at risk.”
Previous Capacity Constraints
This nationwide suspension comes shortly after Starlink ceased accepting new orders in several Nigerian cities, including Lagos, Abuja, Port Harcourt, Benin City, and Warri, due to reaching service capacity.
Future Outlook
Starlink’s entry into the Nigerian market promised to address connectivity gaps, especially in rural areas. However, the ongoing regulatory hurdles and price controversies pose significant challenges.
While the suspension is temporary, the outcome of Starlink’s discussions with the NCC will determine the future availability and pricing of its services in Nigeria.
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