Starlink, the satellite internet service by Elon Musk’s SpaceX, has temporarily halted new orders for its residential kits in Nigeria.
The suspension comes as the company seeks regulatory approval from the Nigerian Communications Commission (NCC) for proposed price increases.
Launched in January 2023, Starlink quickly gained traction in Nigeria, especially in underserved regions lacking reliable broadband infrastructure. Offering high-speed satellite internet, the service became a preferred alternative to traditional internet providers, catering to urban and rural users alike.
However, in September 2024, Starlink announced a sharp price increase, raising the monthly subscription for residential plans from ₦38,000 (approximately $50) to ₦75,000 (about $100). Additionally, hardware kit prices surged by 34%, from ₦440,000 to ₦590,000. The company attributed these changes to inflation and rising operational costs.
This significant price adjustment sparked backlash from both consumers and industry stakeholders, leading to criticism of the NCC for allegedly allowing Starlink greater pricing flexibility compared to local operators.
The NCC responded to price hike by asserting that the increases had not been authorized, citing violations of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003. These provisions mandate regulatory approval for tariff adjustments to protect consumers and ensure market stability.
In response, the NCC initiated pre-enforcement actions, prompting Starlink to temporarily suspend the price hike. The company communicated this decision to its customers, stating:
“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. Today, we are temporarily suspending this price increase as we navigate regulatory challenges.”
Starlink also reassured customers who had paid the higher rate by offering a one-time credit to cover the difference. The company emphasized its commitment to working with regulators while giving subscribers the option to cancel their services if desired.
The suspension of new orders and the reversal of the price hike brought mixed reactions. While many welcomed the reprieve, others expressed concerns about future affordability given the rising cost of living in Nigeria.
For existing customers, Starlink remains a valuable option due to its reliable, high-speed internet service. Many users in remote and underserved areas rely on Starlink, which offers connectivity unavailable through traditional Internet Service Providers (ISPs).
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