The Nigerian Communications Commission (NCC) has warned it would fine Elon Musk’s internet company, Starlink, for increasing its subscription price in Nigeria without clearance from the regulator.
This came after a report by THE NEWS CHRONICLES on Tuesday, in which stakeholders accused the telecom regulator of using a double standard by permitting the price increase but prohibiting local cellular companies from raising their rates.
According to Dr. Reuben Muoka, the Commission’s Director of Public Affairs, the NCC did not sanction Starlink’s pricing increase in response to this publication’s question on the subject.
He claimed that Starlink had violated the license requirements concerning prices and Sections 108 and 111 of the Nigerian Communications Act, 2003.
NCC Startled
In response, Muoka stated that the telecom regulator was taken aback by Starlink’s price increase as well.
“The decision by Starlink to unilaterally review their subscription packages upwards did not receive the approval of the Nigerian Communications Commission.
“We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.
“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act, 2003, and Starlink’s License Conditions regarding tariffs.
“The Commission will therefore take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry,” the DPA said.
Background
Starlink raised the monthly fee for its internet service in Nigeria last week, from N38,000 to N75,000, a 97% increase.
The business also raised the Starlink hardware kits for new customers by 34%, from N440,000 to N590,000.
In a communication to its clientele in Nigeria, the business explained the rise as the result of “excessive inflation.”
In the meantime, telecom operators in the nation have been pleading for a price review under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON).
According to them, the telecom business is the only industry that has not evaluated its rates despite the country’s rising inflation and other economic circumstances that justify escalation.
The operators have called for creative ways to combat inflationary pressures and high operating expenses. Still, the NCC and even Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, have rejected their requests.
What To Note
The Nigerian Communications Act 2003 (NCA), Section 108, grants the NCC the power to control telecom rates. According to the Act, an NCC licensee cannot charge for services until the NCC has approved the tariff rates and fees.
The Act said that “holders of individual licences shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part.”
According to Section 111 of the Act, regardless of any other legal provisions, the Commission shall establish and impose suitable financial penalties on any individual license holder who surpasses the tariff rates officially approved by the NCC to provide any of its services.
