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UPDATED – Big Tech: Telecoms regulator shuts Elon Musk’s Starlink over illegal operations

Photo Collage of American Billionaire Businessman Elon Musk and Starlink Logo

*The Communications Regulatory Authority of Namibia issues a cease-and-desist order to American billionaire businessman Elon Musk’s Starlink, a satellite Internet provider, for operating without a telecommunications service licence, just as the Nigerian Communications Commission recently instituted a ‘pre-enforcement action’ against the company over its ‘unilateral’ tariff hikes in the telecoms ecosystem

Gbenga Kayode | ñ

For the tech giant’s illegal operations without a licence in the country, the Communications Regulatory Authority of Namibia (CRAN) Thursday, November 28, 2024, disclosed it had issued a cease-and-desist order to Elon Musk’s satellite Internet provider Starlink.

ñ reports Starlink, the satellite unit of SpaceX, operates in several African countries, including Nigeria, but has faced regulatory challenges in others and resistance from state telecoms monopolies on the continent.

The network is a satellite Internet constellation, is designed, owned, and operated by Starlink Services, LLC, a wholly-owned subsidiary of American aerospace company SpaceX, the world’s 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 application for licence still under review, says Regulator

The Communications Regulatory Authority of Namibia affirmed Starlink had submitted an application for a telecommunications service licence in Namibia.

However, the regulator not that it had yet to issue the requisite licence to commence televoms operations in the country, as the application is under review.

CRAN further stated: “Following an investigation, CRAN has established that Starlink is operating a network within Namibia without the required telecommunications licence.

“On 26 November, 2024, the Authority issued a cease-and-desist order to Starlink, instructing the company to immediately cease all operations in Namibia.”

Namibia seizes terminals from consumers, institutes lawsuit against Starlink

Meanwhile, the Namibian Communications Regulatory Authority directed the telecoms consumers not to purchase Starlink terminal equipment, or subscribe to its services, staring that such activities are illegal in the African country.

The CRAN statement further noted that the Authority’s investigators have already confiscated illegal terminals from consumers, and have opened criminal cases with the Namibian Police in this regard, it added.

It is recalled that earlier 2024, Cameroon also had ordered the seizure of Starlink equipment at ports as it was not licensed in the country.

Nigerian telecoms regulator initiates ‘pre-enforcement action’ against Starlink

As regards the company’s recent operations in Nigeria, the Nigerian Communications Commission (NCC), October 2024, said the decision of Starlink to unilaterally review the company’s subscription packages upwards did not receive the approval of the country’s telecoms sector regulator.

Mr. Reuben Muoka, Director of Public Affairs at NCC, who announced this in a statement October 8 this year, had noted that the company’s action “is in contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA), 2003, and Starlink’s Licence Conditions regarding tariffs.”

The statement also noted: “The Commission commenced pre-enforcement action on the licensee on the 3rd of October, 2024.”

Earlier attributing its price hikes to “excessive levels of inflation” in Nigeria, Starlink in a message sent consumers,had said the rate increments would affect both current and new customers.

According to the company, 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.

Industry stakeholders seek adherence to regulatory guidelines

Comenting on the company’s unilateral as an affront on NCC’s powers, the Association of Licensed Telecommunication Companies of Nigeria (ALTON) also emphasised the importance of strict adherence to regulatory guidelines mandating the country’s telecoms operators to obtain approval from the Commission before effecting any tariff adjustments in the country’s digital ecosystem.

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

ALTON simply described the Starlink’s move to raise tariffs unilaterally a “significant affront to regulatory authority”.

However, against the backdrop of Nigerian telecoms sector regulator’s declared “pre-enforcement action” against the Internet service provider, Starlink in November 2024, later announced the suspension of  its controversial service fee increments in the West African country.

Starlink reportedly stated: “Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service.

“Today, we are temporarily suspending this price increase as we navigate regulatory challenges.”

The company also explained that the suspension of the new tariff increase regime has not only addressed the NCC’s concerns but also reaffirmed Starlink’s commitment to making high-speed Internet affordable for Nigerian telecoms consumers.

Telecoms industry stakeholders and watchers have observed that Starlink’s move to suspend the tariff hikes was a resolution to the regulatory challenges the company had encountered in its pricing strategy in Nigeria, according to report.

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