After just 21 months in Nigeria, Elon Musk’s Starlink is reportedly planning to withdraw from the country, raising questions about internet access and connectivity challenges. Explore the reasons and potential impacts.
Starlink, the satellite internet service owned by Elon Musk, is facing a critical situation in Nigeria following a controversial price increase that has caught the eye of the Nigerian Communications Commission (NCC). The company’s recent price adjustments have raised concerns about the future of its operations in Nigeria if regulatory issues remain unresolved.
On October 1, Starlink significantly increased the monthly subscription fee for Nigerian residential users by 97.36%, raising it from N38,000 to N75,000.
The cost of its hardware experienced a considerable increase, rising from N440,000 to N590,000. This has made it difficult for many Nigerians to afford the service. As a result of these changes, numerous users are now questioning the sustainability of Starlink’s service in light of economic pressures.
At first, the NCC acted quickly by cautioning Starlink about possible sanctions for what it considered an unauthorized tariff hike. However, they soon reversed this decision and released a subsequent statement clarifying that “This press statement was issued in error. It is hereby withdrawn. If published, kindly bring it down.” This abrupt change led many stakeholders to speculate on the NCC’s position regarding Starlink’s pricing strategy.
Amid ongoing regulatory disputes, Starlink announced to its customers on Thursday that it has chosen not to proceed with the price increase because of these challenges.
The message states, “In the previous month, we raised Starlink’s monthly service price in Nigeria to address inflation. This adjustment helps us sustain operations and continue providing reliable service.”
As we address regulatory challenges, we are temporarily halting the price increase.
If you’ve been charged at the higher rate, we’ll apply a one-time credit to your account to make up for the difference. You also have the option to cancel your service whenever you wish.
We are dedicated to delivering high-speed Internet in Nigeria; however, we require regulatory assistance to implement the enhancements needed for an improved customer experience.
If we do not obtain these approvals, our capacity to continue providing service is jeopardized.
Thank you for choosing Starlink and supporting our mission to provide affordable, high-speed internet access to as many people around the world as possible.
In April, Starlink reduced the cost of its hardware by 45%, dropping from N800,000 to N440,000. Meanwhile, the monthly subscription fee stayed constant at N38,000.
A month earlier, Starlink had raised the hardware price by 112%, from N378,000 to N800,000 — a decision thought to be driven by the depreciating value of the Naira compared to the dollar.
