Nigeria to Sanction Elon Musk's Starlink for Illegal Price Hike

8 October 2024
Leadership (Abuja)
By Nafisat Abdulrahman

The Nigerian Communications Commission (NCC) has announced its intention to take enforcement action against Elon Musk's satellite internet service, Starlink, following a recent increase in subscription prices in Nigeria that was implemented without regulatory approval.

In a statement released on Tuesday, the NCC's Director of Public Affairs, Reuben Muoka, disclosed that Starlink had raised its monthly subscription fee by 97%, from ₦38,000 to ₦75,000. The price for the Starlink installation kit also saw a hike, increased by 34% to ₦590,000 from the previous ₦440,000.

Starlink informed customers of the changes last week, noting that both current and new users would be affected. However, Nigerian telecommunications sector regulator NCC clarified that it had not sanctioned the adjustments. "The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission," Muoka stated.

He further explained that the commission was "surprised" by the move, as Starlink had previously submitted a request for a price adjustment, which the NCC was yet to approve. "The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink's Licence Conditions regarding tariffs," Muoka added.

Under Section 108 of the NCA 2003, the NCC holds the authority to regulate telecommunications tariffs, mandating that no licensee can impose service charges without securing tariff approval from the commission. Section 111 of the Act further empowers the NCC to impose financial penalties on licensees that exceed approved rates, underscoring the importance of regulatory compliance.

"Notwithstanding any other provision of this Act, the commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services," the Act stipulates.

The NCC has yet to specify the exact penalties Starlink may face but has emphasised its commitment to maintaining regulatory stability within the Nigerian telecommunications sector.

Read the original article on Leadership.

Tagged:
Copyright © 2024 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.