Telecommunication operators reveal why Starlink price hike is an insult on NCC

• Telecommunication operators have condemned the unilateral Starlink price increase
• The Association of Licensed Telecommunication Companies of Nigeria (ALTON) condemned Starlink’s action
• They called the Starlink action an insult to the Nigeria Communication Commission (NCC)

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Association of Licensed Telecommunication Companies of Nigeria (ALTON) has criticised Starlink’s decision to hike internet subscription prices without the Nigerian Communications Commission (NCC) approval, calling it an insult to the regulatory authority.

Legit.ng reported that Starlink, owned by billionaire Elon Musk, raised its monthly subscription fees by 97% from N38,000 to N75,000, including a 34% hike in hardware kits from N440,000 to N590,000.

Elon Musk's Starlink draws criticism from telcos for price hikes Credit: Bloomberg/Contributor
Source: UGC

ALTON speaks powerfully against Starlink

The satellite internet service provider, with almost 24,000 subscribers, cited inflation as the reason for the price increase.

Punch reports that ALTON chairman Gbenga Adebayo disclosed that Nigeria’s telecom sector is heavily regulated and needs operators’ compliance to ensure stability.

Adebayo reiterated the need for strict adherence to regulatory guidelines, saying telecom operators must get approval from the NCC before adjusting tariffs.

According to the ALTON boss, the operators contacted the NCC and confirmed that Starlink had not received approval for the hike.

The regulatory framework provides that no operator can unilaterally hike prices without the commission’s consent.

Adebayo disclosed that doing so violates the rules and disrespects the commission’s authority.

NCC withdraws its statement against Starlink

The NCC had earlier criticised Starlink’s price hike, saying that it violated Sections 108 and 11 of the commission’s Act 2003 and the conditions tied to Starlink’s operating license.

NCC disclosed in a statement that Starlink’s actions violate the Nigerian Communications Act and its license conditions regarding tariffs, threatening to sanction the operator.

The commission expressed surprise over the company’s announcement of price changes despite having filed a formal request with the NCC for a price adjustment, which it is yet to approve.

Starlink’s price adjustment has drawn enough attention and criticism, raising concerns over the impact on affordability and internet access.

Telcos seek tariff increases

The commission is expected to take enforcement action against Starlink to ensure compliance and protect consumers.

However, the NCC later withdrew its statement against Starlink, saying it was issued incorrectly.

Telecom operators have clamoured for tariff increases since April this year, saying there has been no tariff increase in over a decade.

Elon Musk’s Starlink introduces cheaper kit

Legit.ng previously reported that Elon Musk’s Starlink had introduced a cheaper kit and a $30.87 monthly residential plan in Kenya after another network carrier, Safaricom, raised its fibre internet speeds to rival the satellite internet company’s service.

The company launched a $347.25 kit in East Africa in July last year.

The internet company’s residential Lite plan will boost competition for subscribers nationwide as users opt for cheaper and faster internet speed.

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Source: Legit.ng