{"id":91970,"date":"2024-10-16T17:33:05","date_gmt":"2024-10-16T17:33:05","guid":{"rendered":"https:\/\/everyday.ng\/?p=91970"},"modified":"2024-10-16T18:45:45","modified_gmt":"2024-10-16T18:45:45","slug":"grumbles-over-nccs-double-standards-as-starlink-raises-tariff-while-others-await-approval","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=91970","title":{"rendered":"Grumbles over NCC’s double standards as Starlink raises tariff, while others await approval"},"content":{"rendered":"

By <\/span>Sonny Aragba-Akpore <\/b><\/span><\/p>\n

An imminent feud is underway between telecommunications regulator, Nigerian Communications Commission (NCC) and Starlink and Mobile Network Operators (MNOS).<\/span><\/p>\n

On October 1, 2024 ,Starlink, an internet service provider (ISP) via satellite owned by Elon Musk, the world\u2019s richest man, announced an increase in its monthly subscription prices in Nigeria.<\/span><\/p>\n

The company, blaming inflation, increased its standard package for residential housing, monthly subscription to N75,000, from N38,000 per month \u2014 an increase of 97.37 percent.<\/span><\/p>\n

The price for the mobile-regional roaming unlimited is now N167,000 while that of the mobile-global roaming service is N717,000. <\/span><\/p>\n

The cost of the Starlink hardware was also increased from N440,000 to N590,000.<\/span>
\nSensing industry backlash, the Nigerian Communications Commission (NCC) came out with a statement on Tuesday,October 8,2024 saying Starlink had contravened sections 108 and 111 of the Nigerian Communications Act 2003 by unilaterally increasing tariffs without approval.<\/span><\/p>\n

\u201cThe decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission (NCC),\u201d NCC said in an initial original statement adding that \u201cWe were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.\u201d<\/span><\/p>\n

\u201cThe action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink\u2019s Licence Conditions regarding tariffs.<\/span><\/p>\n

\u201cThe 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.\u201d<\/span><\/p>\n

NCC statement said it was \u201csurprised\u201d when the company announced the price changes.<\/span><\/p>\n

It said Starlink had filed a request with the commission for a price adjustment, but the regulator was yet to give approval adding that the commission would take enforcement measures against the satellite company.<\/span><\/p>\n

The NCC said Starlink contravened section 108 of the NCA 2003 which gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.<\/span><\/p>\n

Section 111 of the Act empowers the telecoms regulator to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.<\/span><\/p>\n

\u201cNotwithstanding 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,\u201d the Act reads.<\/span><\/p>\n

Mobile Network Operators (MNOS) in Nigeria have been agitating for tariff hikes based on rising inflation and several economic headwinds including high cost of diesel, rising cost of doing business, high foreign exchange rates among others saying their services were overdue for price increments as they have not raised rates in the last 11 years.<\/span><\/p>\n

Strangely,a few hours after the NCC statement on Starlink,and in what appeared to be a face-saving move,the NCC came out with another statement to withdraw the earlier one saying \u201cit was sent in error \u201c.<\/span><\/p>\n

It is however not clear if the regulator has capitulated on its laws and guidelines because industry players who have clamoured for tariff raise for so long are worried that should the NCC keep mum over the Starlink unilateral tariff hike,then Mobile Network Operators (MNOs) May resort to self help.<\/span><\/p>\n

Although no reason was given for the withdrawal of that statement, analysts think the commission may have been complacent as a result of regulatory inactivities especially now that there is a lull in the industry due to dwindling fortunes of operators, some of whom have declared\u00a0 losses due to the economic downturn.<\/span><\/p>\n

Industry players frown at what is happening and have begun to criticise the NCC against the backdrop of the regulator\u2019s unyielding stance on the clamour for an\u202fincrease in tariffs by local telecom operators, especially in the last two years whereas, Starlink, an internet service provider that entered the market officially in January 2023,has been allegedly allowed to increase its tariffs by almost 100%.<\/span><\/p>\n

An analyst quoted a major industry player as saying \u201cStarlink only beams its satellite in Nigeria and acquired an ISP licence from the NCC to offer its service in the country. It currently has zero investment in the country.\u00a0 <\/span><\/p>\n

\u201cMany of us started since the liberalisation of the telecom sector, putting in all our resources to deploy more infrastructure to get more Nigerians connected despite the various challenges in the operating environment.\u00a0 <\/span><\/p>\n

\u201cWe have been appealing to the Commission to allow us to\u202fimplement a\u202ftariff 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 price increase in the same market shows the regulator\u2019s double-standard.\u201d<\/span><\/p>\n

The NCC may have lost steam over its regulatory oversight and demonstrate lack of capacity especially in addressing the issue of tariff increases by local players.<\/span><\/p>\n

The operators believe the commission simply woke up from its slumbers by announcing a statement it could not sustain, let alone justify.<\/span><\/p>\n

\u201cThis is certainly not the NCC of our founding fathers \u201c one veteran player who would rather be addressed as one of the \u201cancestors \u201c of the industry lamented.<\/span><\/p>\n

Starlink came with disruptive technologies that are already making a world of difference for consumers and we looked on as if nothing was happening.The company came prepared.<\/span><\/p>\n

It obtained six licenses from the NCC and got various permits and approvals to flag off the business of internet services via satellite and equally signed Memorandum of Understanding (MoU) and distribution agreements with Nigerian companies including,Technology Distribution Africa (TD),a big\u00a0 distributor of major technology brands and promoted by a restless technology czar, Leo Stan Ekeh.<\/span><\/p>\n

Starlink didn\u2019t stop there, it has decided to take services to even the unserved and underserved communities in Nigeria and parts of Africa for which TD boasts it\u2019s ready for the long haul partnership.<\/span><\/p>\n

Space Exploration Technology Corporation (Space X ) owners of Starlink, which the got six licenses from the NCC, is expected to deploy nearly $30b over time for the Nigerian operations alone.<\/span><\/p>\n

The government is excited that with the entry of Starlink, it may achieve 70% broadband connectivity by 2025 as enshrined in the National Broadband Plan (NBP) 2020\u20132025.<\/span><\/p>\n

But is the government just desperate to achieve this at the expense of low purchasing power of subscribers? The bets are on. <\/span><\/p>\n

Starlink’s six licenses include that for ISP, Gateway Service Provider, International Data Access (IDA), Sales and Installation Major, Gateway Earth Station and Very Small Aperture Terminal (VSAT), making it a mega player and a big threat to other players in the industry.<\/span><\/p>\n

Starlink officially announced its presence in Nigeria in January 2023. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.<\/span><\/p>\n

SpaceX\u2019s Starlink satellite internet service has more than\u00a0 four million global subscribers, achieving rapid growth despite mounting competition.<\/span><\/p>\n

While cable cuts remain a nightmare, Starlink boasts of bridging the gap, with its potential impact extending far beyond addressing temporary outages. These include reaching Underserved Areas where Traditional ISPs often struggle to reach due to the high cost of infrastructure deployment.<\/span><\/p>\n

Starlink\u2019s satellite-based approach can effectively bridge this gap, offering high-speed internet access to previously underserved communities by unlocking educational and economic opportunities for millions of Nigerians currently excluded from the digital world.<\/span><\/p>\n

Starlink boosts Business Continuity by avoiding Frequent internet disruptions that can be detrimental to businesses, especially those reliant on online operations.<\/span><\/p>\n

Starlink claims to be reliable with independent internet access that can provide much-needed resilience, ensuring business continuity even during cable outages.<\/span><\/p>\n

The recent cable cuts hampered online learning and remote work arrangements. Starlink\u2019s stable internet connection may have\u00a0 facilitated smoother online learning experiences for students and enable seamless remote work for professionals across the country.<\/span><\/p>\n

\u25cf <\/span>Aragba-Akpore, an analyst on info-tech trends, lives in Abuja, and sent this via WhatsApp.<\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By Sonny Aragba-Akpore An imminent feud is underway between telecommunications regulator, Nigerian Communications Commission (NCC) and Starlink and Mobile Network Operators (MNOS). On October 1, 2024 ,Starlink, an internet service provider (ISP) via satellite owned by Elon Musk, the world\u2019s richest man, announced an increase in its monthly subscription prices in Nigeria. The company, blaming […]<\/p>\n","protected":false},"author":7,"featured_media":91982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5777],"tags":[4025,193,6675],"class_list":["post-91970","post","type-post","status-publish","format-standard","has-post-thumbnail","category-features","tag-approval","tag-ncc","tag-starlink"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/91970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=91970"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/91970\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/media\/91982"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=91970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=91970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=91970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}