NCC reverses stance, drops Starlink sanction threat

The Nigerian Communications Commission (NCC) has reversed its decision to sanction Starlink for raising subscription rates without approval. The agency issued a statement acknowledging that the previous announcement was a mistake.

This follows a recent complaint by telecom operators who criticised the NCC for allowing Starlink to raise subscription rates by 97% while restricting local operators from increasing their tariffs. Starlink attributed the price hike to 'excessive inflation.'

In response, NCC condemned Starlink's recent price hike, stating that it was not approved. The agency raised concerns about Starlink's compliance with local regulations. NCC's Director of Public Affairs, Dr Reuben Muoka, noted that Starlink's actions violated Sections 108 and 111 of the Nigerian Communications Act, 2003, which grants the Commission authority over telecom tariffs.

“We were surprised that the company unilaterally adjusted its prices after submitting a request for approval, which the Commission was yet to decide on,” Muoka said. 

The commission’s initial decision to penalise Starlink for unauthorised price increases underscored its commitment to enforcing local regulations. However, the reversal of this decision has created uncertainty regarding the NCC's stance and its implications for other telecom operators seeking tariff adjustments.

The recent Starlink controversy coincides with local telecom operators' ongoing push for a tariff review. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have been advocating for increased tariffs to address rising inflation and operating costs.   

In August 2024, the Nigerian Communications Commission (NCC) issued a directive requiring telcos to provide subscribers with detailed information about their tariffs, including all components and conditions.