Elon Musk’s satellite internet service, Starlink, has indicated it may withdraw from Nigeria if the Nigerian Communications Commission (NCC) does not approve its recent increase in subscription prices. On October 1, Starlink announced a staggering 97.36% hike for its Nigerian residential users, raising the monthly fee from N38,000 to N75,000. The company also increased the price of its hardware from N440,000 to N590,000. In response, the NCC threatened to impose sanctions on Starlink for implementing an unauthorized tariff increase. However, just hours later, the commission retracted its statement, acknowledging it had been issued in error.

In light of ongoing regulatory challenges, Starlink informed its customers on Thursday that it would temporarily suspend the planned price hike. The company explained, “Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service. Today, we are temporarily suspending this price increase as we navigate regulatory challenges.” They reassured customers that if they had already been billed at the new rate, a one-time credit would be applied to their accounts, and they would retain the option to cancel their service at any time.

Starlink emphasized its commitment to providing high-speed internet in Nigeria but stressed that regulatory support is essential for enhancing customer experience. The company warned that without the necessary approvals, its ability to sustain service could be jeopardized.

In April, Starlink had previously reduced the cost of its hardware by 45%, dropping the price from N800,000 to N440,000 while keeping the subscription fee stable at N38,000. This came after an earlier price increase in hardware by 112%, influenced by the declining value of the Naira against the dollar.