Published October 8, 2024
By Chinwendu Eugene
The Association of Telecommunications Companies of Nigeria (ATCON) has called for a thorough review of Starlink’s operations in Nigeria, highlighting the need to ensure a level playing field for both local and foreign telecom operators.
This follows the Nigerian Communications Commission’s (NCC) decision to sanction Starlink for implementing unapproved subscription price increases.
ATCON President Tony Emoekpere expressed concern over Starlink’s business model, which allows the company to operate in Nigeria without significant local infrastructure investment, unlike domestic operators who have heavily invested in the country.
“Starlink’s decision to raise prices without regulatory approval puts local operators at a disadvantage,” Emoekpere said. “While competition is encouraged, it must be fair and comply with the same regulatory framework.”
He added that Starlink’s pricing model, tied to international benchmarks, creates an uneven playing field and exerts undue pressure on Nigerian telecom companies. “Local operators, who have invested in Nigeria, are subject to stricter regulatory oversight. Competing with foreign entities that benchmark against the dollar creates a serious challenge,” he added.
Emoekpere also called for a review of Starlink’s licensing conditions, urging the government to ensure that all telecom operators, whether foreign or local, contribute equally to Nigeria’s economy. “We must reassess Starlink’s license and require them to localize their operations. Otherwise, we risk creating an unfair advantage that could harm local players,” he concluded.
ATCIS Condemns Starlink’s 97% Price Hike, Calls for Government Investigation
In a related development, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) has strongly condemned Starlink’s recent 97% price hike for its internet services. The increase saw Starlink’s monthly subscription rise from N38,000 to N75,000, while the price of its hardware kits jumped 34%, from N440,000 to N590,000.
ATCIS National President, Mr. Sina Bilesanmi, voiced deep dissatisfaction with the price hike, criticizing Starlink for bypassing Nigerian consumers and failing to follow regulatory procedures before implementing the increase. “We strongly condemn this action by Starlink. They did not engage Nigerian subscribers or seek the necessary approvals before imposing such a substantial price hike,” Bilesanmi said.
He revealed that ATCIS had contacted the NCC to clarify whether Starlink had full registration and an operational office in Nigeria, but no response had been received. “Despite our inquiries, the NCC has not responded, but we are glad to see the commission acknowledge that Starlink failed to obtain approval before raising prices,” he added.
Bilesanmi called for transparency in the NCC’s regulatory actions and stressed the need for an investigation into Starlink’s operations. “The government must investigate whether the NCC has compromised its role as a regulatory body. Starlink’s price hike, which took effect in early October, is not in the interest of Nigerian subscribers who are already grappling with inflation and economic hardship,” he stated.
He echoed ATCON’s call for a level playing field in the telecom industry, pointing out that local operators are subject to stricter regulations while Starlink, as a foreign entity, enjoys greater operational flexibility. “Local operators face more rigorous regulatory scrutiny, yet Starlink, with no local footprint, operates at an advantage. This is unacceptable,” Bilesanmi emphasized.
The ATCIS President urged the federal government to ensure that foreign companies comply with Nigerian laws and contribute meaningfully to the economy. “We cannot allow foreign companies to exploit Nigerian consumers without proper oversight. The government must hold both the NCC and Starlink accountable,” he concluded.
Both ATCON and ATCIS reaffirmed their commitment to protecting Nigeria’s over 220 million subscribers, advocating for fairness, transparency, and accountability in the telecommunications sector.