StarLink

By Uzair Adam

The Nigerian Communications Commission (NCC) has issued a public clarification regarding its earlier statement on Starlink’s subscription price hike, stating that it was released in error.

Initially, the NCC expressed surprise at Starlink’s announcement of new subscription rates in Nigeria, asserting that the company had not obtained regulatory approval for the price increase.

The Commission acknowledged that while Starlink had submitted a request for a price review, a decision had not yet been made.

The original statement also alluded to potential regulatory infractions under the Nigerian Communications Act (NCA) 2003.

However, the NCC now clarifies that the previous statement was premature and has urged all media outlets to retract any related publications.

Reuben Muoka, the Director of Public Affairs at the NCC, stated, “We request that all media platforms kindly withdraw the previously issued statement on Starlink’s price hike, as it was issued in error.”

He further asked those who published the statement to remove it from their platforms.

The NCC remains dedicated to ensuring regulatory stability and creating a favorable environment for investment in the telecommunications sector, especially as stakeholders continue to call for a review of tariffs to encourage further investment.

The Commission appreciates the cooperation of the media and apologizes for any confusion or inconvenience caused by the earlier release.

By Ibrahym El-Caleel

StarLink is a distant competitor to our telcos. The product price edges it out of immediate competition with MTN, Airtel and co. However, it is good that it is already here. In fact it will definitely gain a fair share from some businesses who have been looking for an alternative to the existing telcos.

Setting up StarLink costs more than N400,000. Personally I think it will be a better buy for businesses who spend about 60-75% of this amount for internet access. They will be bidding farewell to the periodic disappointments we experience from the contemporary telcos.

Market is dynamic. As StarLink takes some time in Nigeria, it will be ambitious about increasing its market share. It will be innovative about coming up with something that will be relatively affordable for the teeming internet subscribers. This is when the true competition will begin. For now, the penetration will be low because at the moment a lot of Nigerians are quite very rich. The consumer conversion will be minimal.

MTN began in Nigeria with N1,500 airtime card only. And it expires in 7 days. If you don’t use the airtime after 7 days, you have to buy another one. This was the case c.2001. Fast forward to 2021, you can have a N100 airtime and keep it for one year if you so wish. StarLink might have to develop something cheaper to get more subscribers onboard. If your things are expensive, you can sell it and make money in Nigeria. If they are affordable to many, you make quicker turnover, bigger sales, (arguably) more profit. This is Nigerian market.