Elon Musk’s satellite internet firm, Starlink, has temporarily stopped accepting new orders for its residential internet kits in Nigeria due to a pricing disagreement with the Nigerian Communications Commission (NCC) over a recent price hike.
The company has halted sales for its less expensive Residential Plan, priced at N38,000 per month, but is still taking orders for its premium Business Plan at N159,000 per month.
In a statement, the company explained:
“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.”
Starlink, which officially launched in Nigeria in January 2023, has seen a surge in demand for its high-speed satellite internet services, particularly in underserved areas. However, in September 2024, the company announced a significant price increase:
Monthly subscription fees for the Residential Plan were raised by 97%, from N38,000 to N75,000.
The cost of the Starlink hardware kits was increased by 34%, from N440,000 to N590,000.
Citing “excessive inflation” as the reason for the hike, the announcement drew criticism from both customers and local telecom operators. The latter accused the NCC of permitting Starlink to adjust its prices while rejecting similar requests from domestic providers.
The NCC clarified that it did not approve Starlink’s price hike, stating that the move violated Sections 108 and 111 of the Nigerian Communications Act 2003, as well as Starlink’s licensing conditions.
NCC’s Director of Public Affairs, Dr. Reuben Muoka, revealed that the commission had initiated pre-enforcement actions against the company. He emphasized that Starlink’s unilateral implementation of the price increase was not in compliance with regulatory guidelines.
In response to the NCC’s stance, Starlink temporarily rolled back the price increase but warned that delays in regulatory approval could jeopardize its operations in Nigeria.
“Without these approvals, our ability to continue delivering service is at risk,” the company stated.
Starlink has now suspended new Residential Plan orders nationwide, pending regulatory approval of its revised pricing structure. The suspension comes after a previous halt in five major cities—Lagos, Abuja, Port Harcourt, Benin City, and Warri—due to capacity constraints.
