Internet connectivity provider, Starlink has increased the price of its hardware from N440,000 to N590,000. This follows the recent continuous depreciation of the naira against the dollar. The increase in its router hardware prices represents a seventy-four per cent raise from the N4400,000 that it cost as of Monday.
The company has also announced an almost one hundred per cent increase in its monthly subscription. For example, the Standard (Residential) package which previously cost N38,000 will now cost users N75,0000. In an email sent to subscribers this morning to announce the price changes,it blamed the increase on “excessive levels of inflation”.
Recall that this is the third time the satellite internet service provider has slashed its prices in Nigeria. Recall that it announced a price reduction for its hardware in Nigeria in October 2023. The cost of the Starlink kit, essential for accessing the service, was slashed by 21% from ₦378,000 to ₦299,000.
When Starlink officially announced its presence in Nigeria in January 2023, the company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
As of February 2024, the router was been sold for N378,000. An increment regime implemented in early March saw a price jump to N800,000. This was evidently in response to the rapidly declining value of the naira to as high as N1900 to a dollar.
When the naira appreciated from record lows close to N2,000/$ to N1230.61/$ on the official window in April, the company slashed the hardware price to N440,000.
It is unclear if the price appreciation is replicated across other markets or if it is a decision that uniquely affects Nigeria. But, some industry experts have expressed concerns that the internet service that Starlink provides may end up becoming a luxury that can only be owned by high to middle-income earners in developed countries.
For example, Diseye Isoun, an expert in African broadband development noted that the number of people who can afford Starlink in Nigeria is still very slim. For him, the satellite company is essentially catering to a middle to rich upper-class Nigerian market.
“They are serving individuals and businesses that can afford it, a few government agencies and generally people unsatisfied with their current service. Even the quote-unquote upper middle class has to put together 300 to 400 thousand to acquire the devices. Then, they have to pay 38,000 for the monthly subscription. These costs have to compete against other costs like school fees, holiday vacations, a bicycle for the child and more”, he explained.
As it stands, this price update may further strain the company market penetration.
After a prolonged impasse, there seems to be hope on the horizon as far as Elon Musk’s Starlink launch in South Africa is concerned.
Recall that the founder met with the South African President, Cyril Ramaphosa on the sides of the recently held United Nations General Assembly meeting which was held in New York. This happened weeks after President Ramaphosa told reporters that he held talks with the company over potential investments.
“I have had discussions with him and have said, Elon, you become so successful and you’re investing in a variety of countries, I want you to come home and invest here,” Ramaphosa told reporters in Pretoria. “He and I are going to have a further discussion.”
This also followed Musk’s announcement on X, four days before that the satellite company had launched its services in the neighbouring country, Zimbabwe. This is coming three months after the country’s President, Emmerson Mnangagwa announced an approval of a license to allow the internet service company to operate.
Starlink’s launch in Zimbabwe is coming two weeks after it launched in Botswana. This makes it the fastest-growing internet service as it is now available in over 107 countries globally and in 16 African countries. The internet company has also launched in South Sudan and Ghana in the past month.
The license approval and eventual launch follows a government crackdown episode on unregistered users smuggling kits from neighbouring countries like Zambia.
Following the South African President’s revelation, the. country’s Internet Service Providers’ Association (ISPA) has said that it has no objections to Starlink launching in South Africa, as long as it complies with the same regulations as local ISPs. Ispa’s regulatory advisor, Dominic Cull, emphasised the need for a level playing field.
Though Starlink hasn’t officially launched in South Africa, it is expanding in neighbouring countries. Delays are attributed to regulatory uncertainties, including Icasa’s proposed changes requiring 30% ownership by historically disadvantaged groups for national operators.
In a similar vein, Kenya’s President, William Ruto, has backed Starlink’s entry into the country, stating it is pushing competitors like Safaricom to improve service quality. Speaking at the US-Kenya Business and Investment Roundtable in New York, Ruto’s remarks follow Safaricom’s recent concerns, urging regulators to be cautious when granting licenses to satellite internet providers.
Other countries in the region with published forecast go-live dates include Mauritius (sometime in 2025), Angola (fourth quarter of 2024), Tanzania (also Q4 2024), the Democratic Republic of Congo (2025), Comoros (2025) and the Seychelles (2025).
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