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Starlink hikes prices in Nigeria by 97%, as Hardware costs surge

Obah Sylva by Obah Sylva
October 25, 2024
in Tech
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Elon Musk’s internet service company, Starlink, has drastically increased its subscription prices in Nigeria, raising the monthly fee by a staggering 97%. Nigerian customers will now pay N75,000 per month, up from the previous rate of N38,000. Additionally, the price of Starlink hardware kits has soared by 34%, with the cost rising from N440,000 to N590,000 for new users.

In a message sent to its Nigerian customers on Tuesday, Starlink explained that “excessive inflation” is behind the steep price increase. The new rates will take effect for current subscribers starting October 31, 2024, while new users will face the higher costs immediately.

The company acknowledged the significant price hike but emphasized that customers can cancel their service at any time if they choose not to continue.

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Despite the higher costs compared to local internet service providers (ISPs), Starlink has rapidly gained popularity in Nigeria since its launch in January 2023. Many Nigerians have been drawn to Starlink’s reliable satellite service, particularly those in rural areas where traditional ISPs struggle to provide consistent coverage.

Read also: Elon Musk’s new video streaming app X TV now available for download

According to the Nigerian Communications Commission (NCC), by the end of Q4 2023, Starlink had amassed 23,897 customers, making it the third-largest ISP in Nigeria. This figure surpasses many local providers that have been in the market for years.

Starlink’s pricing in Nigeria has fluctuated since its arrival. Initially, the hardware was priced at $600 (around N268,584 at the time) and the monthly subscription at $43 (N19,260). However, with Nigeria’s unification of the exchange rate, these prices jumped to N378,000 for hardware and N38,000 for monthly subscriptions as the naira weakened.

In an effort to gain more market share, Starlink briefly slashed hardware prices by 21% to N299,500 in late 2022, before reverting to N378,000 by November. In March 2024, the hardware price spiked again to N800,000 but was later reduced to N440,000—until this latest increase to N590,000.

Even with the frequent price changes, Starlink continues to attract customers, primarily due to its reliable satellite service that works in areas with poor internet connectivity. As inflation drives up living costs and weakens the naira, the appeal of consistent internet service remains strong for both urban and rural users.

Tags: Elon MuskStarlink
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