The Nigerian Communications Commission (NCC) has announced plans to take enforcement measures against Elon Musk’s Starlink organisation over failure to seek approval before carrying out tariff hike on its products and services.
Starlink is a satellite internet constellation operated by Starlink Services, LLC, a wholly owned subsidiary of American aerospace company SpaceX, providing coverage to over 100 countries and territories. It also aims to provide global mobile broadband. SpaceX started launching Starlink satellites in 2019.
Starlink launched its services in Nigeria in January 2023, becoming the first African country to receive the service, after SpaceX met with the Nigerian Communications Commission to outline their deployment plans.
The Nigerian Communications Commission (NCC) has announced plans to take enforcement measures against Elon Musk’s Starlink organisation over failure to seek approval before carrying out tariff hike on its products and services.
The NCC disclosed this in a statement signed by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.
It reads, “The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,”
“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.
“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.”
“Additionally, Section 111 of the Act empowers the NCC 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 license who exceeds the tariff rates duly approved by the commission for the provision of any of its services,”.
It will be recalled that last week Starlink monthly subscription fee was increased by 97%, from N38,000 to N75,000. Starlink also said that new users will face a higher cost for the Starlink kit (the hardware needed for installation), which is now priced at N590,000, up 34% from the previous price of N440,000.
This move comes amid earlier agitations by telecommunications companies that they may be forced to increase their tariff given the prevailing economic circumstances they have been subjected to.