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Starlink, the satellite internet service owned by Elon Musk’s SpaceX, has suspended its planned monthly subscription price increase for Nigerian users, following widespread criticism and regulatory pushback. The decision comes after Nigeria’s third-largest internet service provider faced backlash over the recent price hike, which many customers saw as an added burden amidst the country’s rising inflation.
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Company addressing regulatory concerns
In a message to subscribers, Starlink explained that the price increase would be temporarily put on hold while the company addresses regulatory concerns. It also promised to refund customers who had already been charged the higher rate.
“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,” the company said in a statement. “Today, we are temporarily suspending this price increase as we navigate regulatory challenges. If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference. You also have the flexibility to cancel your service at any time.”
Regulator’s stern warning
The move to reverse the price hike follows a stern warning from the Nigerian Communications Commission (NCC), which stated that it had not been notified of the price adjustment as required by law. The telecoms regulator demanded that Starlink roll back the increase, leading to the company’s decision to suspend it.
Starlink’s initial price adjustment, implemented three weeks ago, saw the monthly subscription fee surge by 97%, from N38,000 to N75,000. Additionally, the cost of the installation kit for new users rose by 34%, from N440,000 to N590,000. These increases sparked complaints from customers about the steep costs, prompting public outcry and regulatory scrutiny.
Nigerians have welcomed the price reversal, noting that it will help more users access Starlink’s high-speed internet services at a reasonable cost. The suspension is viewed as a relief for many in a country where inflation has significantly eroded purchasing power.
Starlink currently serves around 24 million internet users in Nigeria, making it a key player in the country’s expanding internet service market. The company’s decision to suspend the price hike could bolster its reputation and customer base as it navigates regulatory challenges.
