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NCC launches pre-enforcement action against Starlink over unapproved price hike in Nigeria.
The Nigerian Communications Commission (NCC) has initiated pre-enforcement action against Starlink, the satellite internet provider owned by Elon Musk’s SpaceX, following its unilateral decision to increase subscription prices without regulatory approval. Starlink recently announced a 97.36% price hike for its residential users in Nigeria, attributing the decision to the country’s rising inflation. The new pricing will take effect on October 31, 2024, for existing customers.
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The price increase has sparked widespread concern within Nigeria’s internet service provider (ISP) sector, as local operators have faced similar economic pressures but have been unable to secure approval from the NCC for price adjustments over the past two years. Local ISPs cite inflation, foreign exchange shortages, and other economic challenges as reasons for their requests.
However, the NCC emphasised that Starlink’s price hike violates Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and the company’s tariff-related license conditions.
“The Commission commenced pre-enforcement action on the licensee on the 3rd of October, 2024,” stated Reuben Muoka, NCC’s Director of Public Affairs, in an official statement.
Starlink’s move has drawn criticism as it contrasts sharply with the NCC’s stance on local ISPs, who have been denied similar pricing flexibility. This regulatory action by the NCC may set a precedent for how global tech firms operating in Nigeria must comply with local laws and regulations, especially in the telecom sector.
