Elon Musk’s internet company Starlink has suspended subscription price increases announced at the end of September.
Starlink has indicated that the suspension was made in response to pressure from the Nigerian Communications Commission, which previously made an error in its decision to halt the increase as it currently navigates Nigeria’s regulatory challenges. He said it was necessary.
Starlink said customers who were charged the new rate would be issued a credit to cover the difference.
However, the company echoed local operators in the need to raise prices to maintain business.
what starlink says In a message to its customers in Nigeria, Starlink said some people are considering switching to other providers due to the increase in subscription fees from N38,000 to N75,000. He writes:
“Last month, we increased Starlink monthly service prices in Nigeria to account for inflation. This allows us to sustain our operations and continue to provide reliable service. Today, we address regulatory challenges. To address this issue, we’re temporarily suspending this price increase. If you’re already charged a higher rate, a one-time credit will be applied to your account to cover the difference. We’ll also give you more flexibility with your service at any time. You can cancel.
“We remain committed to delivering high-speed internet in Nigeria, but we need regulatory support to make the necessary improvements for a better customer experience.
“Without these approvals, we may be unable to continue providing services.”
back story
Starlink announced on the last day of September that it will increase the price of its monthly subscription by 97% from N38,000 to N75,000.
The company has also increased the price of Starlink kits (hardware) for new users by 34% from 440,000 Naira to 590,000 Naira.
In a message to customers in Nigeria, the company cited “excessive inflation” as the reason for the price increase. The Telecommunications Regulatory Authority noted that Starlink’s actions were in violation of sections 108 and 111 of the Nigerian Communications Act, 2003, as well as license conditions regarding fees. Dr. Ruben Muoka, NCC’s communications director, later announced that the commission had initiated pre-enforcement action against Starlink for raising prices without regulatory approval.
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 called for a review of their tariffs.
They say the only industry that has not revised its prices is telecommunications, despite rising inflation in the country and other economic realities that require price hikes.
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