By 
By Osasome C.O
Starlink Announces Massive Price Increase in Nigeria
Starlink, the satellite internet provider under Elon Musk’s SpaceX, has announced a significant price hike of 97.36% for its residential users in Nigeria, citing the country’s rising inflation. The new pricing, effective October 31, 2024, for existing customers, has raised concerns across Nigeria’s internet service provider (ISP) sector.
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ISP Concerns Over Starlink’s Advantage
Local ISPs are alarmed by the increase, particularly as the Nigerian Communications Commission (NCC), the telecoms regulator, has denied price hike requests from local operators for over two years. Telecom operators cite foreign exchange shortages, inflation, and other economic challenges as reasons for their requests.
According to a Lagos-based operator speaking to IT Edge News.Africa, “NCC will have to provide an answer to this. The current minister is giving US companies undue advantage as far as I know. An investigation must be initiated to unravel the relationship he has with the US embassy and companies.”
Starlink’s Affordable Pricing in Kenya Adds to Tensions
The dramatic price hike in Nigeria comes just days after Starlink introduced a more affordable internet kit in Kenya, priced at $208.38, with a $30.87 (₦49,422) monthly residential subscription plan. This disparity has fueled further frustration among Nigerian ISPs, especially given the regulator’s stance.
New Pricing Breakdown for Starlink Nigeria
On October 1, 2024, Starlink informed Nigerian customers via email about the price adjustments due to “excessive levels of inflation.” Below is the revised pricing structure:
- Standard service subscription increased from ₦38,000 ($22.8) to ₦75,000 ($50) per month.
- Mobile regional (unlimited roaming within Nigeria) plan rose from ₦49,000 ($29.4) to ₦167,000 ($100) monthly.
- Mobile global roaming service now costs ₦717,000 ($429.5) per month.
- Price for new Starlink kits increased by 34%, from ₦440,000 ($263.6) to ₦590,000 ($353.4).
Comparison with Competitors: Starlink’s Competitive Edge
Despite the price hikes, Starlink’s services remain competitive in the Nigerian high-speed broadband market. The median monthly subscription fee for comparable fixed broadband providers is around ₦74,521, close to Starlink’s new ₦75,000 fee.
While the initial setup cost for Starlink’s terminal is higher, its monthly rate aligns with other ISPs offering similar data packages. The total cost of ownership (TCO) for Starlink, factoring in hardware and monthly fees, is higher than most fixed broadband options in Nigeria, which typically range from ₦600,000 to ₦1.2 million annually. However, over time, Starlink’s consistent speed and service may appeal to customers seeking long-term reliability.
Local Operators Call for Regulatory Intervention
Members of the Association of Telecommunications Companies of Nigeria (ATCON) are preparing to engage the NCC regarding this issue. Mobile operators such as MTN, Globacom, Airtel, and 9mobile, under the Association of Licensed Telecoms Operators of Nigeria (ALTON), have also urged the regulator to reconsider allowing price adjustments for local providers.
As the debate over pricing intensifies, Nigerian ISPs are hoping for a level playing field to compete with Starlink’s rapidly growing market share.
