Satellite internet connectivity provider, Starlink, has announced a significant increase in price in Nigeria.
The company has raised the cost of its router from N440,000 to N590,000 which is a 74% increase.
This hike comes in the wake of the naira’s continuous depreciation against dollar, further straining the pockets of many Nigerians.
Additionally, the monthly subscription for the Standard (Residential) package, which previously cost N38,000, has been increased to N75,000. This marks an almost 100% rise in the cost of accessing the satellite service.
In a message to its subscribers, Starlink attributed the surge to “excessive levels of inflation.”
Note that this increase marks the third significant change in Starlink’s pricing model since its entry into the Nigerian market in January 2023.
Initially, the router was priced at N378,000, and while a reduction to N299,000 was implemented in October 2023, the recent depreciation of the naira has once again caused prices to skyrocket.
Commenting on the issue, an expert in African broadband development, Diseye Isoun, expressed concerns over the affordability of Starlink’s services.
“They are serving individuals and businesses that can afford it, a few government agencies, and generally people are unsatisfied with their current service. Even the upper middle class has to put together 300 to 400 thousand to acquire the devices,” he explained.
He emphasized that the price hike might limit Starlink’s accessibility to only high-income earners in Nigeria.
Meanwhile, similar concerns have been raised across other emerging markets where currency devaluation has impacted internet services.
In South Africa, for example, devaluation of rand has forced telecom companies to adjust data prices in response to higher operational costs.
Industry experts believe that the future of affordable internet connectivity in developing countries may hinge on both government interventions and global economic stability.
Starlink continues to grow as it is now available in over 107 countries worldwide and 16 African nations, including South Sudan and Ghana, where it launched in the past month.
In South Africa, the service’s official launch has been delayed due to regulatory hurdles.
The country’s Internet Service Providers’ Association (ISPA) has indicated that while it supports Starlink’s entry, the company must comply with local regulations to ensure a fair competitive environment.
This includes addressing ownership requirements proposed by the Independent Communications Authority of South Africa (Icasa), which mandates 30% local ownership by historically disadvantaged groups.
