Elon Musk’s Starlink is gearing up for a showdown with the Nigerian Communications Commission (NCC). The satellite internet provider, known for its high-speed connections, recently found itself in trouble after increasing its prices to cope with Nigeria’s current harsh economic situation.
On Tuesday, the NCC took issue with Starlink for raising its prices without prior approval, which telecom operators in Nigeria have been trying to achieve for over 11 years. The regulator claimed this was a violation of the National Communications Act (NCA), which gives the NCC full authority to approve price changes from telecom operators and internet service providers (ISPs).
Initially, the NCC stated in a press release that Starlink had “jumped the gun” by making the changes. However, the communications regulator later retracted the claim, admitting that the situation wasn’t as clear-cut as it seemed. Despite the retraction, NCC’s director of public affairs, Reuben Muoka, confirmed that a pre-enforcement action had been initiated on October 3, indicating that Starlink might face sanctions or fines for its actions.
The NCC has the power to dictate prices, determine when to review them, and decide what adjustments to make.
Starlink’s position as a major satellite internet provider in Nigeria also adds complexity. Since its launch in 2022, it has made significant progress, especially as an internet service provider. Former Minister of Communications and Digital Economy, Isa Ali Pantami, praised Starlink for its potential to boost internet penetration to 100%.
Starlink continues its expansion but must first respond to the NCC’s concerns in Nigeria. What consequences the company will face remains to be seen.
