NCC to Sanction Elon Musk’s Starlink Over Unauthorized Tariff Hike

The Nigerian Communications Commission (NCC) has announced plans to sanction Elon Musk’s satellite internet provider, Starlink, over a recent increase in subscription tariffs that was implemented without regulatory approval.

In a statement issued on Tuesday by the NCC’s Director of Public Affairs, Reuben Muoka, the commission expressed concern that Starlink failed to seek necessary clearance before hiking its prices, a move the NCC said violates Nigerian law. “The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” the statement read.

Starlink’s price hike sparked widespread controversy, with many customers and stakeholders raising concerns. According to the NCC, the tariff change contravenes Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, which mandates regulatory approval for any change in service charges.

Muoka highlighted that while Starlink had submitted a request for a tariff increase, the NCC had not yet granted approval when the company went ahead with the price adjustments. The commission stressed that such actions threaten the stability of Nigeria’s telecommunications sector.

The regulator also hinted at possible financial penalties for the violation. Under Section 111 of the NCA 2003, the NCC is empowered to impose sanctions on any telecom operator that implements price changes without approval. “The commission will take appropriate enforcement measures against any licensee capable of eroding regulatory stability,” the statement added.

The tariff hike in question, which took effect last week, saw Starlink’s monthly subscription fee jump by 97%, from N38,000 to N75,000. Additionally, the cost of the Starlink kit for new users increased by 34%, rising from N440,000 to N590,000.

The NCC’s move comes as other telecom companies in Nigeria have signaled potential price increases, citing the difficult economic conditions they are facing.

Starlink is yet to comment on the issue or respond to the NCC’s statement.