The Nigerian Communications Commission (NCC) has said it would take enforcement measures against satellite internet service, Starlink, for an unapproved price hike in Nigeria without the regulator’s approval.
This was disclosed in a statement issued by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.
Muoka said that Starlink’s actions violated Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003 and its licence conditions.
According to him, the commission has taken a dim view of this contravention, seeing it as a threat to regulatory stability in the telecommunications industry.
“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.
“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.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission.
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence Conditions regarding tariffs.
“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,” Muoka said.
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, while 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 licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services,” the Act read.
In a message sent to its customers last week, Starlink said the price hike would affect both existing and new customers.
The monthly subscription fee was increased by 97%, from N38,000 to N75,000.
Additionally, 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
