Elon Musk’s Starlink Under Fire: NCC Sanctions for Price increament

ACNN NEWS
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The Nigerian Communications Commission (NCC) has announced plans to take enforcement action against Elon Musk’s satellite internet service, Starlink, for increasing its subscription prices in Nigeria without regulatory approval.

This information was revealed in a statement by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.

Last week, Starlink informed its customers that the price hike would impact both existing and new subscribers. The monthly subscription fee surged by 97%, rising from ₦38,000 to ₦75,000. Additionally, new customers will now pay ₦590,000 for the Starlink kit—the necessary hardware for installation—marking a 34% increase from the previous price of ₦440,000.

However, the NCC clarified that it had not sanctioned this price increase.

Muoka stated, “Starlink’s unilateral decision to raise its subscription fees did not receive approval from the Nigerian Communications Commission.” He expressed surprise at the company’s announcement, noting that while Starlink had submitted a request for a price adjustment, the regulator had yet to approve it.

He continued, “This action appears to violate Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, as well as Starlink’s Licence Conditions concerning tariffs.”

Consequently, the NCC intends to implement appropriate enforcement measures against any licensee actions that could undermine the regulatory stability of the telecommunications industry.

Section 108 of the NCA 2003 grants the NCC the authority to regulate telecom tariffs, stipulating that no licensee can charge for services without obtaining prior tariff approval. Additionally, Section 111 empowers the NCC to impose financial penalties on any licensee that exceeds approved tariffs, irrespective of other legal provisions.

According to the Act, “The commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual license who exceeds the tariff rates duly approved by the commission for the provision of any of its services.”

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