Table of Contents
Key Points
- Starlink, led by Elon Musk, suspends residential kit orders across Nigeria pending regulatory approval for price hikes.
- Nigerian Communications Commission has rejected Starlink's price increases, citing a violation of licensing conditions.
- Starlink, now in 16 African countries, faces regulatory hurdles and capacity strain amid surging demand in Lagos and Abuja.
Starlink, the satellite Internet provider operated by Elon Musk's SpaceX, has halted new residential kit orders in Nigeria, citing the need for regulatory approval for a proposed price increase. This move comes after the Nigerian Communications Commission (NCC) rejected Starlink's recent price hikes, arguing the adjustments violated regulatory rules.
The satellite Internet provider, which launched its services in Nigeria in January 2023, made headlines in March 2024 when it raised the price of its internet routers from N378,000 ($225) to N800,000 ($477). The company cited Nigeria’s currency devaluation as the primary reason for the drastic increase, which stirred widespread backlash among consumers.
In addition to this, Starlink proposed raising its Residential Plan subscription from N38,000 ($23) to N75,000 ($45) and increasing hardware prices by 34 percent. However, the NCC swiftly intervened, rejecting the price hikes, as they breached both the country’s tariff regulations and Starlink’s licensing conditions.
Starlink focuses on business clients amid regulatory pushback
While new orders for residential kits are paused, Starlink continues to offer its premium Business Plan for N159,000 ($95) per month. This service is designed for businesses and institutions requiring enhanced connectivity. The Business Plan remains unaffected by the regulatory dispute, as it targets a different customer base with higher service needs.
Reuben Muoka, the NCC’s Director of Public Affairs, stated that the Commission is committed to ensuring fair pricing in the telecommunications sector and is already taking pre-enforcement actions against Starlink. The NCC has emphasized the importance of regulatory compliance to protect consumers from unjustified price hikes.
Starlink's expansion dependent on approvals
Elon Musk, the world’s richest person with a net worth of $331 billion, has reiterated Starlink’s goal of global expansion.
However, the company’s operations in Nigeria and other markets depend on securing regulatory approvals. Starlink has warned that without these, its ability to operate in Nigeria could be jeopardized.
Starlink’s rapid growth has garnered attention, with over 23,000 subscribers in Nigeria. Demand is high in major cities like Lagos, Abuja, and Port Harcourt.
Despite sellouts earlier this year, Starlink’s suspension of new orders highlights ongoing challenges balancing expansion with regulatory hurdles. The outcome of its negotiations with the NCC will be crucial for the future of satellite internet in Nigeria.
