Elon Musk’s Starlink set to exit Nigeria after 21 months

Starlink, Elon Musk’s satellite internet provider, has found itself at a crossroads in Nigeria due to a contentious price hike that has drawn the attention of the Nigerian Communications Commission (NCC).

The company’s recent adjustment of prices has sparked concern over the future of its operations in Nigeria if regulatory issues aren’t resolved.

On October 1, Starlink implemented a steep price increase for Nigerian residential users, raising the monthly subscription fee by 97.36% from N38,000 to N75,000.

The price of its hardware also saw a significant jump, going from N440,000 to N590,000, making it challenging for many Nigerians to access this service. These changes have left many users questioning the sustainability of Starlink’s service amid the economic pressures.

Initially, the NCC responded swiftly, warning Starlink about potential sanctions over what it deemed an unauthorized tariff increase. However, this response was quickly retracted, with the commission issuing a follow-up statement that clarified, “This press statement was issued in error. It is hereby withdrawn. If published, kindly bring it down.” This swift reversal left many stakeholders speculating about the NCC’s stance on Starlink’s pricing.

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Despite the regulatory back-and-forth, Starlink informed its customers on Thursday that it had decided to suspend the price hike due to the ongoing regulatory challenges.

It reads, “Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service.

“Today, we are temporarily suspending this price increase as we navigate regulatory challenges.

“If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference. You also have the flexibility to cancel your service at any time.

“We remain committed to providing high-speed Internet in Nigeria, but we need regulatory support to make the improvements necessary for a better customer experience.

“Without these approvals, our ability to continue delivering service is at risk.

“Thank you for choosing Starlink and supporting our mission to bring affordable, high-speed internet to more people as many people around the world as possible.”

In April, Starlink slashed the price of its hardware by 45% from N800,000 to N440,000. At that time, the monthly subscription price remained unchanged at N38,000.

A month prior, Starlink had increased the hardware price by 112%, from N378,000 to N800,000 — a move believed to be influenced by the declining value of the Naira against the dollar.

(TheWhistler)