Association of Licensed Telecommunication Companies of Nigeria (ALTON) has flayed Starlink Satellite for increasing Internet subscription tariffs without obtaining permission from the Nigerian Communications Commission (NCC).
Two weeks ago, Elon Musk’s Starlink upped monthly subscription fees by 97 percent, from N38,000 to N75,000, in addition to a 34 percent rise in hardware package costs, from N440,000 to N590,000.
The Internet service provider said that the price modifications became necessary due to “excessive inflation.”
According to the most recent NCC numbers given in May, the provider had about 24,000 subscribers.
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Telecom providers must adhere to regulatory framework
ALTON Chairman Gbenga Adebayo said the nation’s telecommunications sector is heavily regulated, and stressed that operators must abide by the rules to maintain stability.
He emphasised the importance of adhering to regulatory requirements particularly for operators to obtain NCC clearance before making any changes to tariffs.
“After speaking with the NCC, we learned that no consent was given. No supplier may unilaterally raise prices without the Commission’s approval,” according to the regulatory framework.
“Doing so not only violates the rules but also disrespects the authority of the commission, which must not be taken lightly,” Adebayo informed PUNCH correspondent.
NCC’s conflict with Starlink
The Nigerian Communications Commission (NCC), which is in charge of overseeing the country’s telecom sector, had previously condemned Starlink’s price increase, claiming that it violated the terms of Starlink’s operating licence and Sections 108 and 111 of the Nigerian Communications Act of 2003.
The company’s actions appear to violate both the licence requirements for tariffs and the Nigerian Communications Act.
The commission vowed to take a pre-enforcement action against Starlink, to stop the Internet provider from implementing the new tariffs.
Starlink, Nigeria’s third-biggest ISP, increased its prices recently, raising concerns among Nigerians who feared other Internet providers might also increase their tariffs.
Telecom operators like MTN, Airtel, and Globacom have been lobbying the NCC to increase their general pricing framework for calls, messages and Internet since April.
“Despite the adverse headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints,” Mr Adebayo said in April.
Read also: NCC withdraws “error” statement on Starlink price hike, commences pre-enforcement action
Nigeria Telcos clamour for tariff increase
In the meantime, telecom operators such as MTN, Airtel, and Globacom have been lobbying to increase their rates since April—a move that hasn’t happened in the previous eleven years.
NCC did not approve the request but urged operators to find creative ways to continue their operations until a long-term solution is discovered.
Tariff reviews are a crucial component of current discussions that telcos are holding with stakeholders over concerns about the viability of the telecommunications business, according to ALTON Chairman Adebayo, who commented on the development.
“We’ll keep talking to stakeholders about tariff reviews. Tariff rises are only one aspect of the sustainability of the industry that we are discussing in depth,” said Adebayo.
