The Association of Licensed Telecommunication Companies of Nigeria (ALTON) has expressed serious concerns regarding Starlink’s recent decision to increase its internet subscription prices without securing prior approval from the Nigerian Communications Commission (NCC). The decision is viewed as a significant challenge to the established regulatory framework governing the telecommunications sector. Starlink, owned by Elon Musk, increased its fees by an alarming 97%, raising the monthly subscription cost from N38,000 to N75,000. Additionally, the price of the hardware necessary for the service also saw a steep 34% rise, going from N440,000 to N590,000. These sudden price changes have sparked outrage among industry stakeholders, highlighting the importance of regulatory compliance in maintaining a fair and stable telecommunications environment in Nigeria.
According to Starlink, the rationale behind these significant price hikes centers on the concept of “excessive inflation” affecting the economy. However, ALTON’s Chairman, Gbenga Adebayo, emphasized that the telecommunications sector in Nigeria is strictly regulated and that any operator wishing to adjust tariffs must first obtain approval from the NCC. He underscored that Starlink’s unilateral decision to raise prices without regulatory consent disrespects the authority of the NCC and disrupts the established order within the industry. Adebayo reinforced this point by noting that ALTON had already contacted the NCC, which confirmed that no approval for such price adjustments had been granted, thus further indicating that the move was in violation of existing regulations.
In response to Starlink’s actions, the NCC condemned the price increases, asserting that they contravene the Nigerian Communications Act of 2003 and the conditions of Starlink’s operational licensing. The regulatory body stated that these actions would prompt them to consider appropriate enforcement measures to maintain regulatory stability. Importantly, the NCC noted that it had been blindsided by Starlink’s announcement, especially since the company had filed a request to adjust prices, which the NCC had not yet approved. Such developments raise questions about the functioning of the regulatory framework and the need for clearer communication between the operator and the regulator.
As the third-largest internet service provider in Nigeria, Starlink’s price hikes have drawn significant attention and raised concerns about internet accessibility and affordability for a large segment of the population. Following the NCC’s initial condemnation of the price increase, the regulator surprising reversed its position, indicating that the earlier statement had been issued in error. The lack of clarity from the NCC regarding its stance has left industry stakeholders questioning its commitment to regulatory fairness and could potentially undermine consumer protection measures. Additionally, the regulator faces scrutiny for perceived double standards, particularly as it has yet to approve tariff adjustments for other major mobile operators seeking price increases after a prolonged period.
Service providers like MTN, Airtel, and Globacom have been pushing for tariff increases since April, highlighting a strained operational environment for telecommunications companies in Nigeria, which have not been permitted to adjust their pricing for more than a decade. The refusal of the NCC to approve these requests has pushed operators to seek innovative solutions and engage in discussions with stakeholders about sustaining their business models. The situation has become a focal point of discussion within the industry, as increased operational costs and inflation weigh heavily on telecom providers’ ability to operate efficiently and competitively.
In light of these developments, ALTON’s Chairman Adebayo stated that discussions regarding tariff reviews and the overall sustainability of the telecommunications industry are ongoing. He emphasized the need for comprehensive stakeholder engagement as they navigate the challenges of tariff increases and regulatory compliance. Adebayo reiterated that while tariffs are a crucial aspect of these discussions, they are only one part of a larger conversation centered around ensuring the long-term viability of the industry. As the situation continues to evolve, the telecommunications landscape in Nigeria remains at a critical juncture, with potential ramifications for both service providers and consumers in the realm of internet access and affordability.
