NCC says pre-enforcement action against Starlink commenced October 3

The Nigerian Communications Commission (NCC) said it has commenced pre-enforcement actions against Starlink for implementing price increment without the approval of the regulator.

The Commission’s Director of Public Affairs, Dr Reuben Muoka, stated this in an updated statement on the matter that has generated debates in the telecom industry.

“The Commission commenced pre-enforcement action on the licensee on the 3rd of October 2024,” NCC said in the statement

What the Commission earlier said 

Nairametrics broke the news that NCC would sanction Starlink.

This followed our earlier report in which stakeholders had accused the telecom regulator of a double standard for allowing the price increment while disallowing local telecom operators from increasing their tariffs.

In response to this publication’s inquiry on the matter, Muoka had said the NCC did not approve Starlink’s price increment.

According to him, Starlink’s action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.

He also said the telecom regulator was also surprised by the price increment implemented by Starlink.

“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission.

“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 action of the company appears is a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License 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,” the DPA had stated.

Backstory 

Starlink last week increased monthly subscription for its internet service in Nigeria by 97% from N38,000 to N75,000.

• For new users, the company also increased the Starlink kits (hardware) by 34% from N440,000 to N590,000.
• The company in a message to its customers in Nigeria cited “excessive inflation” as the reason for the increment.
• Meanwhile, telecom operators in the country under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have been clamouring for tariff review.
• According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.
• However, the NCC and indeed the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have dismissed the calls by the operators, urging them to explore innovative solutions to counter inflationary pressures and high operating costs.