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Home » ALTON Condemns Starlink 97% Price Hike, Points to Regulatory Violation

ALTON Condemns Starlink 97% Price Hike, Points to Regulatory Violation

…accusing the NCC of applying double standards by allowing Starlink’s price hike while holding back local companies from making similar adjustments

Joan Aimuengheuwa by Joan Aimuengheuwa
October 14, 2024
in Telecoms
0
ALTON Condemns Starlink’s 97% Price Hike, Points to Regulatory Violation
Starlink

Starlink

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ALTON, the Association of Licensed Telecommunications Operators of Nigeria, has condemned the decision of Starlink to raise internet subscription prices without obtaining prior approval from the Nigerian Communications Commission (NCC). 

The satellite internet provider recently increased its monthly fees by 97%, raising costs from ₦38,000 to ₦75,000. This move has drawn objections from industry stakeholders, who argue that Starlink’s actions undermine regulatory authority.

Gbenga Adebayo, Chairman of ALTON, stressed the importance of compliance with regulatory standards. “Our telecommunications sector is highly regulated for a reason, and no operator should bypass these rules. Starlink’s price increase is not just a breach of the NCC’s regulatory framework but a clear disregard for the authority of the Commission,” Adebayo stated.

The NCC had earlier shown disapproval, noting that the price adjustment violated sections of the Nigerian Communications Act, 2003, which requires operators to seek regulatory approval for tariff changes. 

While the Commission initially threatened sanctions against Starlink, it later withdrew its statement, attributing the earlier announcement to an error, leaving the sector uncertain about further enforcement action.

United BANK

Local operators, including MTN, Airtel, and Globacom, have also been seeking tariff reviews to cope with rising operational costs, but their requests have faced delays. ALTON Chairman pointed out the disparity in treatment, accusing the NCC of applying double standards by allowing Starlink to raise its prices while holding back local companies from making similar adjustments. 

As the third-largest internet service provider in Nigeria, Starlink’s price hike has led to arguments about the impact on affordability and access to internet services. The situation has drawn attention to the challenges facing the telecom industry, where inflation and rising costs continue to pressure both local and international operators.

Even with the regulatory confusion, industry groups like ALTON remain focused on finding solutions. “We will continue to engage stakeholders and push for a balanced resolution. The sustainability of the telecom sector depends on fair regulatory practices and the ability to adjust prices to reflect economic realities,” Adebayo said.

The need for clarity and consistency in regulatory oversight is of huge importance, as local and international operators scale through Nigeria’s challenging economic environment.

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