The monthly subscription fee for Starlink, Elon Musk’s internet service provider, has increased by 97% in Nigeria, from N38,000 to N75,000. The business also raised the Starlink hardware kits for new customers by 34%, from N440,000 to N590,000.
While Starlink had revised the pricing of its hardware in Nigeria upwards and downwards multiple times, this is the second time it has increased subscriptions. In a communication to its clientele in Nigeria, the business explained the rise as the result of “excessive inflation.”
Starlink stated that the increased subscription rate would go into effect immediately for new customers and would take effect on October 31 for existing users. The corporation stated in the message it sent to its customers throughout the nation on Tuesday morning: “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): 167,000; 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.”
Furthering, it added: “If you do not wish to continue your service, you can cancel at any time.”
Continuing, when Starlink announced its arrival in Nigeria in January 2023, it aroused a lot of curiosity among Nigerians who were ready to switch service providers, despite its higher prices when compared to local ISPs. People in places with inadequate internet networks are also encouraged to choose Starlink due to the satellite service’s widespread availability. Starlink is now among the top Internet service providers (ISPs) in Nigeria in terms of user base, according to data from ISPs that was made public by the Nigerian Communications Commission (NCC).
With 23,897 users as of Q4 2023, Starlink was the third-largest ISP in Nigeria based on customer count. Less than that amount of users are being served by numerous local ISPs in Nigeria that have been in business for several years, BrandSpur digital news platform reports.
Notwithstanding Starlink’s January announcement of its formal arrival in Nigeria, Nigerians had been placing pre-orders for its hardware since 2022. When the company made its official announcement, it had switched from using dollars to naira, quoting prices for the hardware as $600 and the membership as $43.
Starlink’s hardware and monthly subscription fees were N268,584 and N19,260, respectively, at that time. However, that was based on the official dollar exchange rate, which was approximately N450/$1 at the time. The Naira’s value continued to decline along with the unification of the currency rate, driving up the cost of hardware and subscriptions to N378,000 and N38,000, respectively.
To increase its market share as an ISP in Nigeria, Starlink cut its hardware prices by 21% between October and November of last year. Starlink’s hardware was sold for N299,500 after the price reduction. On November 16, though, it returned to its regular price of N378,000.
Starlink once more raised the price of their gear to N800,000 in March of this year. This was then reduced to N440,000, though, and remained that way until the most recent increase.
