NCC withdraws sanction threat against Starlink Nigeria

The Nigerian Communications Commission (NCC) has withdrawn its earlier statement, where it threatened to sanction Elon Musk's internet company, Starlink for increasing its subscription price without its approval.

The Commission's Director of Public Affairs, Dr. Reuben Muoka, who shared the NCC's position with Nairametrics earlier, said the response to this publication's inquiry was an "error".

"Please ignore my response above. My statement was an error of assertion," he stated in his message to our Analyst.

It is, however, unclear why the regulator has backtracked having established that the company contravened its law for increasing tariffs without the regulator's approval.

What the Commission earlier said

Nairametrics broke the news that NCC would sanction Starlink.

This followed our earlier report in which stakeholders had accused the telecom regulator of a double standard for allowing the price increment while disallowing local telecom operators from increasing their tariffs.

In response to this publication's inquiry on the matter, Muoka had said the NCC did not approve Starlink's price increment.

According to him, Starlink's action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.

He also said the telecom regulator was also surprised by the price increment implemented by Starlink.

"The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission.

"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.

"The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink's License 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," the DPA had stated.

Backstory

Starlink last week increased monthly subscription for its internet service in Nigeria by 97% from N38,000 to N75,000.

• For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.

• The company in a message to its customers in Nigeria cited "excessive inflation" as the reason for the increment.

• Meanwhile, telecom operators in the country under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have been clamouring for tariff review.

• According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.

• However, the NCC and indeed the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have dismissed the calls by the operators, urging them to explore innovative solutions to counter inflationary pressures and high operating costs.