The Association of Licensed Telecommunication Companies of Nigeria has condemned Starlink’s decision to raise internet subscription prices without prior approval from the Nigerian Communications Commission, labelling the move a significant affront to regulatory authority.
Barely two weeks ago, Elon Musk’s Starlink increased its monthly subscription fees by 97 per cent, raising the cost from N38,000 to N75,000, alongside a 34 per cent hike in hardware kit prices from N440,000 to N590,000.
The internet service provider, with nearly 24,000 subscribers, according to the latest NCC figures released in May, cited “excessive inflation” as the reason for these price adjustments.
The ALTON Chairman, Gbenga Adebayo, said the country’s telecommunications sector is highly regulated and requires compliance from operators to ensure continued stability.
He reiterated the importance of strict adherence to regulatory guidelines, stating that telecom operators must obtain approval from the NCC before making any tariff adjustments.
“We had made contact with the NCC, and they confirmed that no approval was granted. According to the regulatory framework, no provider can unilaterally increase prices without the Commission’s consent.
“Doing so not only breaches the rules but also disrespects the authority of the Commission, which must not be taken lightly,” Adebayo told our correspondent.
The NCC, tasked with regulating Nigeria’s telecommunications industry, had earlier condemned Starlink’s price hike, stating that it violated Sections 108 and 111 of the Nigerian Communications Act of 2003, as well as the conditions tied to Starlink’s operating license.
“The action of the company appears to contravene the Nigerian Communications Act and its license conditions regarding tariffs. The Commission will take appropriate enforcement measures to ensure regulatory stability,” the NCC said in a statement, which it later revoked last week.
The regulator explained that the commission was “surprised” when the company announced the price changes, despite having filed a request with the NCC for a price adjustment, which the regulator had yet to approve.
As the third-largest internet service provider in Nigeria, Starlink’s price hike has drawn significant attention, raising concerns about the impact on affordability and access to internet services.
The NCC, which has been accused of double standards by industry stakeholders, is expected to take enforcement action against the company to ensure compliance and protect consumers.
Since the regulator withdrew its statement condemning Starlink’s price increase, claiming it was issued in error, the NCC has not clarified its stance.
Meanwhile, mobile operators like MTN, Airtel, and Globacom have been clamoring since April for approval to raise their tariffs, a move that has not occurred in 11 years.
The telecom regulator has yet to grant this approval but has encouraged operators to seek innovative ways to sustain their businesses while a lasting solution to their requests is found.
Commenting on the development, ALTON Chairman Adebayo stated that telcos are engaging stakeholders to discuss concerns about the sustainability of the telecommunications industry, with tariff reviews being a key part of ongoing discussions.
“We will continue to engage stakeholders regarding tariff reviews. We are having extensive discussions about the sustainability of the industry, and tariff increases are just a fraction of it,” Adebayo added.
Source: punchng.com
