See why Tinubu govt plans to sanction Elon Musk company for breaking Nigeria's regulation

• The Nigerian Communications Commission (NCC) may impose sanctions on Elon Musk’s Starlink
• The decision is for alleged violations of local telecommunications regulations for announcing an increase in prices
• Although the increase has been reversed, a new report claims that the NCC may still go ahead and fine Starlink for the decision

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian Communications Commission (NCC) has reportedly found Starlink guilty of breaching part of the Nigerian Communications Act (NCA) 2003.

This is due to the company's decision to increase its subscription rates without regulatory approval.

NCC may sanction Starlinks for announcing new subscription prices before the reversal Photo credit: Bloomberg contributor
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Legit.ng had reported that Starlinks, owned by Elon Musk, announced a near 100% increase in its subscription fee from N38,000 to N75,000.

Also, the company raised the Standard (Residential) plan to N75,000 per month, while regional roaming for mobile was set at N167,000 and global roaming at N717,000.

A part of the Starlink statement, which has been withdrawn, reads:

"As a current customer, your monthly service price will increase in 1 month, beginning 31 October 2024. For new customers, the price increase is effective immediately.” “If you do not wish to continue your service, you can cancel at any time.”

The company attributed the hike to inflationary pressures but reversed the increase following reaction and warnings from the NCC. Punch reports.

NCC responds

Leadership reports that immediately after Starlink's announcement, NCC issued a statement that was also later withdrawn, stating that no approval was given.

Part of the withdrawn statement reads:

“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.”

BusinessDay reports that NCC has concluded plans to issue a letter detailing the sanctions to Starlink this week.

Alton debunks any approval for telcos to increase tariff

In a similar development, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), has debunked reports that the NCC has approved tariff increases for telecom and internet companies.

Legit.ng spoke to ALTON Chairman Gbenga Adebayo about the new directive to increase tariffs, and he provided clarification.

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Source: Legit.ng