*Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunication Companies of Nigeria, notes the Association condemned Starlink鈥檚 recent decision to jack up Internet subscription rates for telecoms consumers without prior approval from the Nigerian Communications Commission, stressing compliance from network operators will ensure industry stability

Gbenga Kayode | 绿帽献妻

The Association of Licensed Telecommunication Companies of Nigeria has emphasised the importance of strict adherence to regulatory guidelines mandating the country鈥檚 telecoms operators to obtain approval from the Nigerian Communications Commission (NCC) before effecting any tariff adjustments in the ecosystem.

Engr. Gbenga Adebayo, Chairman of ALTON, who stated this noted the Association condemned Starlink鈥檚 recent decision to increase Internet subscription rates without prior approval from the NCC.

ALTON has described the Starlink鈥檚 move to raise tariffs unilaterally a 鈥渟ignificant affront to regulatory authority鈥�.

Photo collage of Elon Musk and Starlink logo

绿帽献妻 reports Starlink network, a satellite Internet constellation, is designed, owned, and operated by Starlink Services, LLC, a wholly-owned subsidiary of American aerospace company SpaceX, the world鈥檚 leading provider of launch services, providing coverage to over 100 countries and territories across the globe.

Starlink also aims to provide global mobile Broadband to telecoms consumers.

Starlink鈥檚 argument for Internet rate increments in Nigeria

American billionaire businessman Elon Musk鈥檚 Starlink, of recent, increased its monthly subscription fees by 97 percent, according to report.

The Telco had announced an increase in its monthly subscription rates for Nigerian telecoms consumers.

The company, in a message sent consumers at the time said the rate increments would affect both current and new customers.

According to Starlink, standard residential package would go for N75,000, mobile regional (roam unlimited) new price fixed at N167,000; and mobile global (global roam) package is N717,000.

The company equally disclosed in the message that the price hikes are effective immediately for fresh customers but effective from October 31, 2024, for existing users.

It is further noted that the telecoms firm attributed the price hike regime to 鈥渆xcessive levels of inflation鈥�, which stated had made it necessary to adjust service fees in line with economic realities in Nigeria.

The company鈥檚 message to customers also reads: 鈥淵our monthly service price will increase in one month, starting from 31 October 2024. For new customers, the price increase takes effect immediately.鈥�

The satellite Internet provider as well said consumers who no longer wish to continue with the service could cancel same at any time without any penalties.

Pre-enforcement action against Starlink has commenced, says NCC

It was gathered that Starlink鈥檚 price hike had drawn significant attention in the telecoms sector, raising concerns about the impact on consumers鈥� affordability and access to Internet services in the digital ecosystem.

Some industry stakeholders also accused the NCC of 鈥渄ouble standards鈥�, stressing the telecoms regulatory Commission is expected to take an enforcement action against the company to ensure compliance and protect consumers in the country.

In its official reaction to the development in the past week, the NCC had said the decision of Starlink to unilaterally review the company鈥檚 subscription packages upwards did not receive the approval of the country鈥檚 telecoms sector regulator.

Mr. Reuben Muoka, Director of Public Affairs at NCC, who noted this in a statement, affirmed that the telecoms company鈥檚 action 鈥渋s in contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink鈥檚 Licence Conditions regarding tariffs.鈥�

鈥淭he Commission commenced pre-enforcement action on the licensee on the 3rd of October, 2024,鈥� Muoka stated.

Importance of strict adherence to regulatory guidelines, by ALTON

Emphasising the significance of industry regulatory guidelines, Engr. Adebayo noted the Nigerian telecoms sector is highly regulated, and requires compliance from network operators to ensure continued stability.

The ALTON Chief stated in line with the extant regulatory guidelines, telecoms operators must obtain approval from the NCC before making any tariff adjustments in the sector.

He reportedly said: 鈥淲e had made contact with the NCC, and they confirmed that no approval was granted.

鈥淎ccording to the regulatory framework, no provider can unilaterally increase prices without the Commission鈥檚 consent.

鈥淒oing so not only breaches the rules but also disrespects the authority of the Commission, which must not be taken lightly.鈥�

Of price hikes, innovation, QoS/QoE and telecoms sustainability

In a related development, mobile network operators, including MTN Nigeria Communications, Airtel Networks and Globacom, have been clamouring for approval to raise their tariffs since April 2024.

However, the telecoms sector regulator has not granted their requests for telecoms product and services rate hikes.

The Commission has continued to encourage network operators to seek innovative ways to sustain their businesses while a lasting solution to their requests is found in the ecosystem.

Besides, the leadership vision of Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, is focused on advancing collaborations with other critical sectors of the Nigerian economy to drive innovation, efficiency, Quality of Service (QoS) and consumers鈥� Quality of Experience (QoE) in the country鈥檚 digital ecosystem.

The Commission as reeled off certain parameters for network operators in its new QoS Regulations 2024.

绿帽献妻 reports the NCC noted with the new Quality of Service Regulations, it aims to achieve a 50 percent QoS target by the end of 2024, besides other ambitious goals, including boosting Broadband deployment and penetration to 70 percent by 2025.

According to the regulator, the Quality of Service regulations for telecoms companies was designed for immediate implementation.

The QoS Regulations 2024 specifically set parameters for the different network segments of the Telcos covering 2G, 3G, and 4G networks respectively in Nigeria.

The regulations focus on stipulated parameters, including Drop Call Rates, Call Setup Success Rate, and Traffic Congestion, among others.

The NCC equally stated that Telcos鈥� failure to meet such specified parameters would attract a N5 million fine, as well as N500,000 daily penalty for each infraction in the ecosystem.

Meanwhile, Engr. Adebayo, Chairman of ALTON, has stated that Telcos yet are engaging stakeholders to discuss concerns about the sustainability of the telecommunications industry, with tariff reviews being a key part of ongoing discussions.

He said: 鈥淲e will continue to engage stakeholders regarding tariff reviews. We are having extensive discussions about the sustainability of the industry, and tariff increases are just a fraction of it.鈥�

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