Starlink, the satellite internet service owned by Elon Musk’s SpaceX, has announced a significant price hike for Nigerian users, attributing the increase to rising inflationary pressures.
In a statement issued on Tuesday, October 1, 2024, the company revealed that the monthly subscription for its standard residential package has been raised from ₦38,000 to ₦75,000, marking a 97.37% increase. Additionally, the cost of Starlink hardware has been adjusted from ₦440,000 to ₦590,000.
“Your monthly service price will increase in one month, starting from October 31, 2024. For new customers, the price increase takes effect immediately,” the company stated.
Starlink also noted that customers who choose to cancel their subscriptions will not face any penalties. Other pricing updates include the mobile regional (roam unlimited) package priced at ₦167,000, and the mobile global (global roam) package set at ₦717,000.
This comes at a time when several mobile operators, including MTN, Globacom, Airtel, and 9mobile, have also called for price adjustments, citing similar economic challenges. However, the Nigeria Communications Commission (NCC) has yet to approve these requests.
Mixed Reactions to Starlink Price Hike
Chimezie Chuta, Chairman of the National Blockchain Policy Implementation Steering Committee, defended the new pricing, arguing that at ₦75,000 ($40), Starlink remains competitive. He highlighted the service’s benefits, such as unlimited downloads, fast speeds, and low maintenance costs, which make it a better deal than most other internet service providers (ISPs) in Nigeria.
“Starlink subscription at ₦75,000 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 said. He acknowledged that inflation has made such price adjustments necessary to ensure business sustainability.
However, Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria, expressed concerns about the affordability of the new rates. He questioned whether Starlink considered the purchasing power of the region and suggested that the company might struggle to achieve widespread adoption at these prices.
“If the price is now ₦75,000 per month, it is either they are not considering the purchasing power of the region and how much adoption they can achieve,” Iwuno argued. He also urged Starlink to explore manufacturing smaller, more affordable devices tailored to the African market, noting the high combined cost of subscription and hardware.
Starlink’s Growth in Nigeria
Starlink officially launched in Nigeria in January 2023, making it the first African country to receive the service. SpaceX had previously engaged with the NCC to outline its deployment plans. By September 2023, just eight months after launching, Starlink had attracted 11,207 active subscribers in Nigeria, positioning itself as the fourth-largest ISP in the country.
By the end of 2023, Starlink’s subscriber base had surged to 23,897, making it the third-largest ISP in Nigeria, with an impressive 113% quarter-on-quarter growth.
To encourage more users, Starlink introduced a 21% discount on its starter kit in October 2023, reducing the price from ₦378,000 to ₦299,500.
In a related development, Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, requested that Elon Musk create a maintenance programme for Starlink in Nigeria. In a post on X (formerly Twitter), Tijani proposed that certified installers and local production of repeater boxes could generate thousands of jobs in the country.
