Elon Musk-owned internet service provider Starlink has increased the price of its monthly subscription fee in Nigeria by 97%, from N38,000 to N75,000.
Additionally, the cost of the Starlink hardware kit for new users has surged by 34%, rising from N440,000 to N590,000, as the company blames “excessive inflation” as the reason for the price increase.
In a message sent to customers, the company wrote,
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“Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below:
- Standard (Residential): N75,000
- Mobile – Regional (Roam Unlimited): N167,000
- Mobile – Global (Global Roam): N717,000
As a current customer, your monthly service price will increase in 1 month, beginning 31 October 2024. For new customers, the price increase is effective immediately.”
Starlink increase in prices of its hardware and its subscription is coming despite Nigeria’s headline inflation rate easing to 32.15% in August 2024 down from the 33.40% recorded in July 2024. This represented the second consecutive monthly slowdown in inflation after easing in the previous month.
However, on a year-on-year basis, the August 2024 inflation rate was 6.35 percentage points higher than the 25.80% rate recorded in August 2023, indicating a significant increase over the past year.
While Starlink has previously adjusted its hardware prices both up and down in Nigeria, this marks the second time the company has increased its subscription fees. Despite these higher prices compared to local ISPs, Starlink has gained significant traction in Nigeria since its entry in January 2023. As of September 2023, just 8 months after its launch, the satellite internet amassed 11,207 active subscribers in Nigeria, making it the fourth largest ISP in the country.
Starlink has made rapid strides, becoming a transformative force in the country’s telecom sector. Its satellite service has proven particularly attractive to customers in regions with poor internet connectivity. By Q4 2023, Starlink had become the third-largest ISP in Nigeria with 23,897 customers, surpassing many long-established local ISPs.
Industry experts have commended the significant investment of Elon Musk’s Starlink in Nigeria, insisting that such investment in Nigeria’s telecommunications infrastructure, demonstrates the company’s unwavering commitment to Africa.
Additionally, Starlink’s exclusive shop-in-shop collaboration with Nigeria’s composite e-commerce platform, Konga, and some other retail outlets further amplified its presence in the country and provided customers with convenient access to Starlink’s kits and accessories.
As Starlink continues to grow its presence, the cost increases may prompt existing and potential customers to reconsider their options, though its unique advantages in under-served areas, coupled with a high internet speed, remain a key selling point.