Nigeria sanctions Starlink over price increase

Nigeria has begun a process to sanction Starlink after the satellite-internet service owned by billionaire Elon Musk increased its prices without approval from the regulator. A Fin24 report notes SpaceX's Starlink unit recently nearly doubled its monthly subscription rate to 75 000 naira ($46) from 38 000 naira ($23), citing ‘excessive inflation,’ while there was a 34% hike in equipment charges. Nigerian law requires telecommunication licence holders to obtain approval from officials before they raise tariffs or charges. The regulator said in a statement that it has ‘commenced pre-enforcement action on the licensee’ since 3 October, following Starlink's decision to hike prices without approval. While the US company did file a request, it jumped the gun by announcing price changes before the Nigerian Communications Commission (NCC) had shared its decision, the NCC said. In response to a request for comment, Starlink shared a link to an October 1 statement on X by Musk stating ‘Starlink prices must roughly match the rate of inflation in any given country.’ The annual rate of inflation in Nigeria was near a three-decade high of 32.2% in August. The NCC hasn't allowed any tariff increases by mobile phone operators for several years and in 2022 ordered MTN Nigeria Communications, the nation's operator, and Airtel Africa to reverse a 10% price increase.

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The South African Government looks set to change a rule that demands that global communication companies like Starlink must be 30% owned by historically disadvantaged groups if they wanted to operate in SA, reports News24. On Friday, Communications Minister Solly Malatsi said he will issue a policy direction that could offer alternatives to the 30% equity employment rule in the communications industry. This is thought to have held Starlink back from applying for a licence in SA. Malatsi said that other sectors have equity equivalent measures in place that provide an avenue for alternative ways for companies to make a contribution to SA's socio-economic development. He said clarity over equity alternatives in terms of the Electronic Communications Act would attract increased investment in ICT and accelerate universal internet access in the country. Malatsi said the policy direction will be considered urgently. Starlink is a satellite Internet provider that can beam Internet to almost any area of the planet through its network of low-Earth-orbit satellites. While Starlink is able to provide service to people with a subscription and the right hardware, most countries – including SA – require internet providers to register for a licence to operate legally. Despite multiple meetings with Icasa, SpaceX has opted not to apply for a licence to operate in SA.

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