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Starlink Price Hike Causes Dispute As Telecom Stakeholders Accuse NCC of Double Standard
Telecom Stakeholders Accuse NCC: The Nigerian Communications Commission (NCC) has come under heavy criticism from stakeholders in the Nigerian telecom sector over the recent internet subscription price increment announced by Elon Musk’s Starlink.
Telecom Stakeholders Accuse NCC of Double Standard
The telecom stakeholders accuse NCC of double standard, and pointed out that the regulator won’t let local telecom companies increase their prices, but has allowed Starlink to do so. However, it is unclear yet if the NCC approved Starlink’s price increment.
A telecom operator speaking to IT Edge News. Africa, said, “NCC will have to provide an answer to this. The current minister is giving US companies an undue advantage as far as I know. An investigation must be initiated to unravel the relationship he has with the US Embassy and companies.”
According to Nairametrics, another CEO of one of the ISPs in Nigeria, said: “We have been appealing to the Commission to allow us to implement a tariff review for years now, but it said it had to carry out a cost-based study before any decision could be made. We are still waiting for the result of that study. Now, allowing Starlink to implement a price increase in the same market shows the regulator’s double standard.”
The stakeholders further highlighted that increase of Starlink’s price in Nigeria under the watch of NCC is an affront to local operators, who continue to invest all their resources in the country to expand telecom services but are not permitted to review their prices despite the rising costs of operation.
Also Read: Starlink Adds 97% Increase to Subscription Fees in Nigeria
Nigerian Telecom Operators Urge For Price Adjustments
Note that only the NCC can control telecom prices, according to Section 108 of the Nigerian Communications Act 2003. The Act stipulates that no NCC licensee can charge for services until the NCC approves the tariff rates and charges.
The Act stated, “Holders of individual licenses shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part,”
However, the increase of Starlink’s price in Nigeria has unsettled the telecom stakeholders and has caused them to question whether the NCC is being fair and transparent in its regulations.
Finally, members of the Association of Telecommunications Companies of Nigeria (ATCON) are preparing to further engage the NCC regarding this issue.
Mobile operators such as MTN, Globacom, Airtel, and 9mobile, under the Association of Licensed Telecom Operators of Nigeria (ALTON), have also urged the regulator to reconsider allowing price adjustments for local providers.
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