NCC Retracts Starlink Price Hike Statement

NCC's Price Hike Blunder

“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission...”

NCC reverses statement on Starlink's unauthorized price hike in Nigeria, citing error. Starlink's subscription fees rose by 97%.

The Nigerian Communications Commission (NCC) has made a surprising U-turn, withdrawing its statement that accused Starlink of hiking subscription prices without regulatory approval. This sudden reversal comes just hours after Reuben Muoka, NCC's Director of Public Affairs, expressed surprise at Starlink's unilateral price changes, despite the company having filed a request with the NCC for a price adjustment.

According to Muoka, Starlink's actions contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, which empowers the NCC to regulate telecom tariffs. The commission had initially stated that it would take enforcement measures against Starlink for the unauthorized price hike. However, in a dramatic turn of events, the NCC has now retracted its statement, citing it as an “error.”

The controversy surrounds Starlink's significant price increases, with monthly subscription fees rising by 97% from N38,000 to N75,000, and hardware costs jumping from N440,000 to N590,000. Industry experts have expressed concerns that these price hikes may make Starlink's services inaccessible to all but the wealthy in Nigeria. The NCC's withdrawal of its statement has left many wondering about the implications for Starlink's operations in Nigeria and the broader telecom industry.

“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision,” NCC had said earlier in a statement.

“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.

“The Commission will, therefore, take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry.”

Reuben Muoka, Director of Public Affairs at the Nigerian Communications Commission (NCC), has made a U-turn, requesting that media outlets retract the commission's earlier statement regarding Starlink's price hike. Essentially, Muoka is asking the press to disregard the NCC's initial claim that Starlink increased its subscription prices without obtaining regulatory approval. This sudden reversal comes after the NCC initially expressed surprise at Starlink's price changes, despite the company having filed a request for a price adjustment.

“I wish to request that all who have received this press statement should ignore, as it was issued in error,” he said.

“Kindly withdraw it if it has been posted on your platforms.” 

Telecom industry stakeholders have been advocating for a tariff increase to make the sector more appealing to investors. This call for upward review aims to ensure the financial sustainability and competitiveness of telecommunications companies.

On April 25, telecommunications operators (telcos) emphasized the urgent need for price adjustments, citing an 11-year period without rate increases. They argued that the prolonged freeze on tariffs has impacted their revenue and profitability, necessitating a review to reflect current market realities.