This is even as the NCC claimed that Starlink failed to seek approval from it before carrying out such increase.
Following the controversy that greeted the increase in tariff plan by Elon Musk’s Starlink, the Nigerian Communications Commission (NCC) has announced plans to take enforcement measures against the organisation.
This is even as the NCC claimed that Starlink failed to seek approval from it before carrying out such increase.
The NCC disclosed this in a statement signed by the commission’s Director of Public Affairs, Reuben Muoka, on Tuesday.
“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission,” the statement read in part.
The regulator expressed surprise that Starlink went ahead to announce price changes, despite submitting a request for such increase, which has not been approved.
He added, “The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence Conditions regarding tariffs.”
The NCC in the statement said it would take appropriate measures against the move which had the capacity to cause instability in the telecommunications sector.
“The commission will, therefore, take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry.
“Section 108 of the NCA 2003 gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.”
“Additionally, Section 111 of the Act empowers the NCC to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.
“Notwithstanding any other provision of this Act, the commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services,” it was noted.
It would be recalled that last week, Starlink sent a message to its customers, noting that the said the price hike would affect both existing and new customers.
The monthly subscription fee was increased by 97%, from N38,000 to N75,000.
It was further stated that new users will face a higher cost for the Starlink kit (the hardware needed for installation), which is now priced at N590,000, up 34% from the previous price of N440,000.
This move comes amid earlier agitations by telecommunications companies that they may be forced to increase their tariff given the prevailing economic circumstances they have been subjected to.
