STARLINK, Elon Musk's satellite internet service provider, has temporarily suspended new residential orders across Nigeria pending regulatory approval from the Nigerian Communications Commission (NCC) for proposed price adjustments.
The company, which launched in Nigeria in January 2023, seeks to increase its monthly subscription fee by 97% from ₦38,000 to ₦75,000 and hardware costs by 34% from ₦440,000 to ₦590,000, citing "excessive inflation."
While residential plans are suspended, the business plan remains available at ₦159,000 monthly.
The situation has sparked controversy in Nigeria's telecommunications sector, with local operators accusing the NCC of double standards, claiming their requests for price adjustments have been denied for years.
The NCC has responded by stating that Starlink's actions violate Sections 108 and 111 of the Nigerian Communications Act, 2003, and the company's licensing conditions, leading to its suspension.
Starlink's challenges in Nigeria come amid high demand for its services across Africa, exemplified by sold-out terminals in Harare, Zimbabwe, less than two months after launching there.
Earlier this year, the company had already faced capacity issues in five major Nigerian cities, leading to service restrictions in urban centers like Lagos, Abuja, and Port Harcourt.
Starlink has cautioned that its ability to continue delivering high-speed internet in Nigeria is dependent on receiving the necessary approvals.
Elsewhere, Starlink Satellite has officially applied for national network facilities and application services licenses from the Tanzania Communications Regulatory Authority (TCRA).
The application, announced in a public notice on November 15, 2024, follows lengthy negotiations regarding spectrum rights and data protection compliance, with the TCRA establishing a mandatory 14-day public comment period before making a final decision, as required by the Electronic and Postal Communications Act for licenses exceeding five years.
The satellite internet service provider aims to address Tanzania's market opportunity by delivering high-speed internet access to underserved rural and remote areas, where traditional broadband infrastructure is lacking.
In other news, The Communications Authority of Kenya (CA) is seeking assistance from the UN's International Telecommunication Union (ITU) to develop regulations for satellite internet providers like Elon Musk's Starlink, amid growing concerns over fair competition and regulatory challenges.
The cross-border nature of Starlink's operations, which uses over 6,400 active satellites to provide low-latency broadband, has created a regulatory "conundrum" that requires global coordination on issues including spectrum allocation, space debris management, data privacy, and cross-border compliance.
The regulatory push comes as Safaricom and other local telecoms protest Starlink's operations, with Safaricom urging regulators to require satellite providers to partner with local mobile operators and citing security risks.
While Starlink currently operates under a temporary one-year license from June 8, 2023, offering services at Sh1,300 per month compared to $120 in the US, its entry has faced mixed reactions across Africa - with some countries like Rwanda welcoming it, while others including South Africa and Cameroon have classified it as illegal.
