Starlink suspends Nigerian tariff hike

SpaceX's satellite Internet service, Starlink, has suspended a recent price increase, which saw base subscription prices nearly double in Nigeria.

Earlier this month, Nigerian subscribers received an email alerting them that Starlink's standard residential plan with a 1TB fair usage policy will now cost 75,000 Nigerian Naira (US$45.60), up from N38,000 ($23.10); however, the price for Starlink kits would remain unchanged.

In a message to subscribers late last week, however, the Internet service provider explained that the price increase would be put on hold while it addresses regulatory concerns.

Many Starlink users took to social media to reveal the email Elon Musk's company sent them.

"Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service," Starlink's message to subscribers explained.

"Today, we are temporarily suspending this price increase as we navigate regulatory challenges. We remain committed to providing high-speed Internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience," it noted.

"Without these approvals, our ability to continue delivering service is at risk," the company said.

Related:South Africa's president holds talks with Starlink

Starlink has temporarily suspended a recent price increase in Nigeria as it navigates regulatory challenges. (Source: Starlink)

Furthermore, the company told subscribers that if they had already been charged at a higher rate, a one-time credit would be applied to their account to cover the difference.

"You also have the flexibility to cancel your service at anytime," Starlink added.

Regulatory pitfalls

It is believed that Starlink's reversal came after the Nigerian Communications Commission (NCC) asked Musk's company to reconsider the tariff hikes or face sanctions.

According to TechCabal, the regulator said that Starlink did not receive the approval of the NCC.

The commission added that Starlink's action contravened Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink's Licence Conditions regarding tariffs.

Moreover, according to The Guardian, the NCC could still sanction the Internet service provider even with the tariff reversal.

The publication reports that a sanction is needed to set the record straight and ensure that licensees in the sector do not flout regulatory orders.

While it is unclear what the next move will be from either party, the price reversal will come as a relief to Nigerian subscribers.

In Kenya, Starlink introduced different incentives to make pricing more competitive. Recently, Starlink introduced a more affordable mini kit in the country priced at 27,000 Kenyan Shillings ($209) with speeds of up to 100 Mbit/s.

Related:SpaceX's Starlink goes live in Mozambique

Starlink customers in Kenya also benefit from lower monthly subscription rates, such as KES4,000 ($31) for the mini plan and KES6,500 ($50.40) for the standard plan.

Furthermore, in August 2024, the company introduced a rental option allowing Kenyans to get its kits for KES1,950 ($15) per month.

Across Africa, Starlink is currently active in Burundi, Botswana, Ghana, Zimbabwe, Benin, Rwanda, Malawi, Mozambique as well as Zambia, Kenya, Madagascar, Sierra Leone, South Sudan and Eswatini.