Starlink increases monthly subscription cost to N75,000 from January 27

Internet connectivity provider Starlink has announced a 100 per cent increase in the cost of its monthly subscription packages for users in Nigeria. For example, the Standard (Residential) package, which previously costs N38,000, will now cost users N75,0000.

In an email sent to subscribers this evening to announce the price change, the satellite network company noted that the increase will help it “continue to deliver reliable, high-quality service across Nigeria”.

The email indicated that the new price regime will take effect from January 27, 2025. For new customers, the price increase is effective immediately. “These changes reflect our commitment to investing in the infrastructure needed to support and improve your experience with Starlink”, the email said.

The company also increased the price of its hardware router from N440,000 to N590,000 on its website. The increase represents a seventy-four per cent raise from the N4400,000 that it costs as of today.

This recent announcement follows an attempt to increase the subscription and router purchase prices in October by the same rate. Starlink similarly announced the price change in an email sent to subscribers.

In response, the Nigerian telecoms regulator, the Nigerian Communications Commission (NCC), in a statement through its Director of Public Affairs, Dr Reuben Muoka suggested that Starlink acted without an. approval: 

“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission. The action of the company is in contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs. The Commission commenced pre-enforcement action on the licensee on the 3rd of October, 2024”, the statement said.

In reaction, Starlink suspended the planned price hike owing to a “lack of regulatory approval from the NCC”. 

“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,” the statement reads.

The NCC’s regulatory authority stems from Sections 108 and 111 of the Nigerian Communications Act 2003.  These provisions make it mandatory for telecom operators to seek and obtain tariff approvals from the NCC before altering any fees for their services. 

Section 108 explicitly prohibits licensees from imposing charges for any service without prior approval, while Section 111 allows the Commission to impose financial penalties on companies that breach this rule.

Subsequently, Starlink informed customers already charged the new price that they will be refunded through a one-time credit activation. “If you’ve already been charged at the higher rate, a one-time credit will be applied to your account to cover the difference.”

It also warned of the risk of terminating services in Nigeria if the impasse persists: “Without these approvals, our ability to continue delivery service is at risk”, the company said.

It is unclear, as of the time of writing, if Starlink has secured the required approval from the NCC to make this change.

Starlink’s price regime in Nigeria

On a flip note, this is the third time the satellite internet service provider has slashed its prices in Nigeria.

Recall that it announced a price reduction for its hardware in Nigeria in October 2023. The cost of the Starlink kit, essential for accessing the service, was slashed by 21% from ₦378,000 to ₦299,000.

When Starlink officially announced its presence in Nigeria in January 2023, the company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.

As of February 2024, the router was been sold for N378,000. An increment regime implemented in early March saw a price jump to N800,000. This was evidently in response to the rapidly declining value of the naira to as high as N1900 to a dollar.

When the naira appreciated from record lows close to N2,000/$ to N1230.61/$ on the official window in April, the company slashed the hardware price to N440,000.

It is unclear if the price appreciation is replicated across other markets or if it is a decision that uniquely affects Nigeria. However, some industry experts have expressed concerns that the internet service that Starlink provides may end up becoming a luxury that can only be owned by high to middle-income earners in developed countries.