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Starlink has suspended orders for its residential kits across Nigeria with a note that the suspension would be lifted after securing approval from the Nigerian Communications Commission (NCC) for its recently announced price increment.
The company owned by Elon Musk, however, allows orders for its high-end Business Plan, in which it is allowed to charge N159,000 for a monthly subscription compared with the Residential Plan which costs N38,000 per month.
“We’re committed to providing high-speed internet in Nigeria and are working closely with regulators to make adjustments that will improve the customer experience.
“Until these changes are approved, we are placing new Residential orders on hold,” the company stated in response to an attempt to order its kits.
Earlier, Starlink had stopped new orders in five major cities including Lagos, Abuja, Port-Harcourt, Benin City, and Warri because it was incapacitated in those areas.
However, the current suspension cuts across Nigeria and it is hinged on the need to increase prices, a move that the regulator had frowned at.
Demand for Starlink’s services in the country has soared since the Space X-linked company officially launched in the country in January last year.
It was gathered that the rush for Starlink is not only in Nigeria as the company’s terminals are currently sold out in Zimbabwe’s capital of Harare, less than two months after receiving permission from authorities to operate in the southern African nation.
Starlink had on the last day of September announced a 97 percent price increase for its monthly subscription from N38,000 to N75,000.
For new users, the company also hiked the Starlink kits (hardware) by 34 per cent from N440,000 to N590,000.
The company, via a message to its customers in Nigeria cited “excessive inflation” as the reason for the increment.
The announcement sparked controversy in the Nigerian telecom sector as local operators accused the NCC of double standard for allowing Starlink to increase price, which they are not allowed to do so despite years of appeal to the regulator.
The NCC, however, responded saying it did not approve Starlink’s price increment.
The telecom regulator pointed out that Starlink’s action contravened Sections 108 and 111 of the Nigerian Communications Act, 2003, and its license conditions regarding tariffs.
NCC’s Director of Public Affairs, Reuben Muoka, later said the Commission had commenced pre-enforcement actions against Starlink for unilaterally implementing price hike without recourse to the regulator.
Starlink later suspended the announced increment with a warning that “without these approvals, our ability to continue delivering service is at risk.”
It noted that while it is committed to providing high-speed internet in Nigeria, it would need regulatory support to make the improvements necessary for a better customer experience.