In a strategic move, Starlink, Elon Musk’s internet service company, has announced a significant reduction in the price of its hardware by 45% in Nigeria.
The price drop affects the Starlink internet router, which has seen its cost plummet from N800,000 to N440,000, while the monthly subscription remains steady at N38,000.
This move comes amidst the recent appreciation of the Nigerian naira against the US dollar, potentially influencing Starlink’s decision to slash prices.
Despite being comparatively more expensive than local ISPs, Starlink has garnered considerable interest among Nigerians seeking to switch service providers.
Since its introduction in January 2023, Starlink has rapidly gained traction in Nigeria, boasting 11,207 customers as of Q3 2023.
Notably, Nigerians had been pre-ordering Starlink hardware since 2022, indicating the pent-up demand for reliable internet services in the region.
Furthermore, Starlink has extended its price reduction strategy to South Africa, where hardware prices have been cut by 43%, despite lacking licensing.
This move underscores Starlink’s commitment to expanding its market reach across Africa.
The appreciation of the Nigerian naira for the fourth consecutive week, reaching N1,251.05/$1, coupled with the Central Bank of Nigeria’s efforts to increase local dollar liquidity and liberate the naira, signals a positive outlook for the country’s economy and its currency.
