The Nigerian Communications Commission has announced its intention to take enforcement actions against Elon Musk’s satellite internet service, Starlink, following the company’s recent decision to raise subscription prices in Nigeria without prior approval from the regulator.
According to The PUNCH, this development was shared in a statement from the NCC’s Director of Public Affairs, Reuben Muoka, on Tuesday.
Last week, Starlink notified its customers that the new pricing would impact both existing and prospective users.
The monthly subscription fee saw a staggering increase of 97%, escalating from N38,000 to N75,000.
Furthermore, new users will now face a higher cost for the Starlink installation kit, which is now priced at N590,000, reflecting a 34% hike from the previous rate of N440,000.
In response to these changes, the NCC expressed its surprise, emphasizing that it had not sanctioned the price hikes.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” Muoka stated.
He highlighted that although Starlink had filed a request for a price adjustment with the NCC, this request remained unapproved.
Muoka further explained that the company’s actions could be seen as a violation of Sections 108 and 111 of the Nigerian Communications Act 2003, as well as Starlink’s License Conditions concerning tariff regulations.
“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,” he noted.
The NCC is committed to maintaining regulatory stability in Nigeria’s telecommunications sector and plans to implement appropriate enforcement measures against any licensee whose actions jeopardize this stability.
Section 108 of the NCA 2003 explicitly grants the NCC the authority to regulate telecom tariffs, stating that no service provider can impose charges without obtaining prior tariff approval.
Additionally, Section 111 empowers the NCC to levy financial penalties on any licensee that exceeds approved tariffs, underscoring the commission’s regulatory authority.
“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 states, highlighting the regulatory framework within which the NCC operates.
As the situation unfolds, it remains to be seen how Starlink will respond to the NCC’s announcements and what steps the commission will take to enforce compliance.