The Nigerian Communications Commission (NCC) says Starlink, a satellite internet service, did not get regulatory approval before hiking its prices.
On October 1, Starlink, owned by Elon Musk, the world’s richest man, announced an increase in its monthly subscription prices in Nigeria.
The company, blaming inflation, increased its standard package (residential) monthly subscription to N75,000, from N38,000 per month — an increase of 97.37 percent.
The price of the mobile-regional roam unlimited is now N167,000 while that of the mobile-global roam service is N717,000. The cost of the Starlink hardware was also increased from N440,000 to N590,000.
Reacting to the development on Tuesday, the NCC in a statement signed by Reuben Muoka, its director of public affairs, said it was “surprised” when the company announced the price changes.
According to Muoka, Starlink had filed a request with the commission for a price adjustment, but the regulator was yet to give approval.
He also said the commission would take enforcement measures against the satellite company.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission (NCC),” Muoka said.
“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 (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.”
Meanwhile, section 108 of the NCA 2003 gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.
Also, section 111 of the Act empowers the telecoms regulator to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.
“Notwithstanding any other provision of this Act, the commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services,” the Act reads.
On April 25, telecommunications operators in Nigeria said their services were overdue for price increments as they have not raised rates in the last 11 years.
END
Be the first to comment