Elon Musk’s Starlink, a prominent player in Nigeria’s internet service sector, has implemented a staggering 112% price increase on its hardware.
The Starlink internet router, formerly priced at N378,000, now commands a hefty N800,000, signaling a substantial adjustment amid economic shifts.
The surge, unexplained by Starlink, coincides with the persistent depreciation of the Naira against the dollar, plummeting from N907 to N1,602 at the official market between December 2023 and March 7, 2024.
Despite this steep increase, Starlink’s monthly subscription cost remains stable at N38,000, presenting an interesting dynamic for consumers.
Despite its higher costs relative to local Internet Service Providers (ISPs), Starlink has garnered significant attention in Nigeria since announcing its presence in January 2023.
The company’s satellite service has particularly appealed to Nigerians in areas with subpar internet networks.
Recent data from the Nigerian Communications Commission (NCC) reveals that Starlink is emerging as a leading ISP in Nigeria.
As of Q3 2023, Starlink boasts a customer base of 11,207, surpassing many established local ISPs.
Starlink’s entry into the Nigerian market in January last year sparked enthusiasm, with pre-orders initiated in 2022. Originally pricing its hardware and subscription in dollars at $600 and $43, respectively, the company shifted to Naira upon its official announcement.
However, the unification of the exchange rate saw a surge in prices.
Between October and November last year, Starlink temporarily slashed hardware costs by 21%, selling at N299,500, only to revert to the original price of N378,000 on November 16.
