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The Association of Licensed Telecommunication Companies of Nigeria (ALTON) has condemned Starlink’s recent decision to increase its internet subscription prices without obtaining prior approval from the Nigerian Communications Commission (NCC). ALTON described the price hike as a serious violation of regulatory authority and standards in Nigeria’s telecommunications industry.
Just two weeks ago, Elon Musk’s Starlink raised its monthly internet subscription fee by 97%, increasing the cost from N38,000 to N75,000. Additionally, the price of Starlink’s hardware kits surged by 34%, rising from N440,000 to N590,000. The internet service provider, which boasts nearly 24,000 subscribers according to NCC data from May, cited “excessive inflation” as the main reason for the price adjustments.
Gbenga Adebayo, Chairman of ALTON, criticized Starlink’s unilateral decision, highlighting that Nigeria’s telecommunications sector is tightly regulated and requires operators to comply with established rules to maintain market stability. He emphasized the need for strict adherence to NCC guidelines, noting that all telecom operators must secure approval from the regulator before making any tariff adjustments.
“We reached out to the NCC, and they confirmed that no approval was granted for the price changes. Under the regulatory framework, no provider can independently increase tariffs without the Commission’s consent. Such actions are not only a breach of regulations but also a disregard for the authority of the NCC, which cannot be overlooked,” Adebayo stated.
The NCC, responsible for overseeing the telecommunications industry in Nigeria, also criticized Starlink’s price increase, asserting that it violated Sections 108 and 111 of the Nigerian Communications Act of 2003, along with the conditions tied to Starlink’s operating license. The Commission initially warned that Starlink’s actions contravened the law and stated it would take enforcement measures to maintain regulatory order.
In a surprising turn of events, the NCC later revoked its statement condemning Starlink’s actions, explaining that the original statement had been issued in error. The regulator has since failed to clarify its official position, leaving industry stakeholders uncertain about the next steps.
As the third-largest internet service provider in Nigeria, Starlink’s price hike has raised concerns over affordability and internet access for consumers. Industry critics have accused the NCC of double standards, while they wait for the regulator to take appropriate enforcement action to ensure compliance with industry regulations.
Meanwhile, major telecom operators such as MTN, Airtel, and Globacom have been requesting permission to raise their tariffs since April. These companies, which have not received tariff increases in over 11 years, continue to press the NCC for approval. Although the regulator has yet to grant this request, it has encouraged operators to explore innovative solutions to sustain their businesses while awaiting a final resolution.
Commenting further on the industry’s challenges, ALTON Chairman Adebayo reiterated that telecom operators are engaging stakeholders to address concerns about the long-term sustainability of the telecommunications sector. He noted that tariff reviews remain a key aspect of ongoing discussions.
“We are committed to working with stakeholders to address the issues affecting the industry, including tariff reviews. Our discussions are extensive, and while tariff increases are part of the solution, there are broader sustainability concerns that must also be addressed,” Adebayo concluded.
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