Elon Musk’s Starlink hikes internet subscription fee by 97% for Nigerian users

Starlink, the satellite internet service owned by Elon Musk’s SpaceX, has announced a significant price increase for Nigerian users, citing rising inflation.

The monthly subscription fee rose by 97 per cent, from N38,000 to N75,000, effective immediately for new customers, the service provider posted on its website, Tuesday.

New users will also face a higher cost for the Starlink kit (hardware for installation), which will now be priced at N590,000, a 34 per cent increase from the previous price of N440,000.

“Your monthly service price will increase in one month, starting from October 31, 2024. For new customers, the price increase takes effect immediately,” the operator said in an email to customers.

The Chairman of the National Blockchain Policy Implementation Steering Committee, Chimezie Chuta, in a chat with The PUNCH defended the new Starlink subscription price of N75,000 ($40), asserting that it remains a competitive option compared to other internet service providers in Nigeria.

He stated, “Starlink subscription at N75,000 is still a far better deal than most other ISPs in Nigeria because we’re talking about unlimited downloads, fast and reliable service, zero maintenance, and easy extensibility option.”

Chuta acknowledged the impact of inflation on pricing, explaining that it is reasonable for service providers to adjust their fees to ensure business viability.

He said, “The reality of inflation is glaring, so I do not expect the service provider not to make these price adjustments to stay in business.”

Chuta indicated that many users are likely to continue their subscriptions due to the advantages offered by Starlink.

peaking with The PUNCH, the President of the Stakeholders in Blockchain Technology Association of Nigeria, Obinna Iwuno, raised concerns about Starlink’s recent price increase and the lack of in-built power support for its devices.

With the new subscription fee set at N75,000 per month, Iwuno expressed skepticism about the company’s consideration of local purchasing power and the potential for widespread adoption.

He argued, “If the price is now N75k for subscription per month, it is either they are not considering the purchasing power of the region and how much adoption they can achieve.”

Iwuno also suggested that Starlink should explore the manufacturing of smaller, more affordable devices tailored to the African market, as the current pricing structure is high, especially when combined with the cost of the device itself.

He emphasized the importance of innovation and responsiveness to market needs, stating, “When times like this arise, it is also a responsibility of the business to innovate and continue serving the market. An understanding of your market is always very important.”

Starlink launched its services in Nigeria in January 2023, becoming the first African country to receive the service, after SpaceX met with the Nigerian Communications Commission to outline their deployment plans.

As of September 2023, just eight months after its launch, Starlink had gained 11,207 active subscribers in Nigeria, according to data from the NCC for the third quarter of 2023.

This rapid growth positioned Starlink as the fourth largest Internet Service Provider in the country.

By the fourth quarter of 2023, Starlink’s active customer base in Nigeria surged to 23,897, elevating the company to the third leading ISP in Nigeria.

This figure represents an impressive 113 per cent increase in subscribers quarter-on-quarter.

To further enhance adoption, Starlink Nigeria introduced a 21 per cent discount on its starter kit in October 2023, lowering the price from N378,000 to N299,500.

Elon Musk’s Starlink hikes internet subscription fee by 97% for Nigerian users (punchng.com)

The internet company also indicated that users could cancel their subscriptions without incurring penalties.

Other updated pricing structures include a standard residential package at N75,000, a mobile regional (roam unlimited) package for N167,000, and a mobile global (global roam) package for N717,000.

Similarly, mobile operators like MTN, Globacom, Airtel and 9mobile under the regulation of the Nigeria Communications Commission have called for an upward price review of their services citing economic headwinds. This request is yet to be granted by the industry regulator.