Starlink Hikes Prices In Nigeria By 97%, Standard Plan Now ₦75,000

Satellite internet provider Starlink announced a huge price jump for Nigerians, with the monthly subscription fees being increased by 97%, making the standard plan from ₦38,000 ($22.8) to ₦75,000 ($50).

The mobile regional (roam unlimited) plan, which lets customers use Starlink kits outside their home or office within Nigeria, has also increased from ₦49,000 ($29.4) to ₦167,000 ($100) per month, a report by Space in Africa mentioned.

The mobile global roaming service was now priced at ₦717,000 ($429.5) per month. Furthermore, the price of new Starlink kits has risen by 34%, from ₦440,000 ($263.6) to ₦590,000 ($353.4).

Existing customers will start paying these new rates from Oct. 31, while new subscribers will have to pay the updated prices immediately.

The company explained that the price increase was due to "excessive levels of inflation," which had made it necessary for them to raise service fees to match current economic conditions.

"Your monthly service price will increase in one month, starting from 31 October 2024. For new customers, the price increase takes effect immediately," the company mentioned in the statement, Punch reported.

The company also mentioned that customers who wanted to stop using the service can cancel at any time without facing any penalties. Starlink's new prices were now similar to other high-speed fixed broadband options in Nigeria.

A study by Space in Africa showed that the average monthly fee for six fixed broadband providers offering services comparable to Starlink's 1,000 GB fair usage policy is around ₦74,521, which was just below Starlink's new monthly fee of ₦75,000.

This showcased that even with a massive price increase, Starlink's rates were still competitive in the high-speed broadband market.

Starlink's total cost of ownership (TCO), which includes the one-time cost of the hardware and monthly fees, is higher than most traditional broadband options, the report by Space in Africa mentioned.

The TCO for high-end fixed broadband plans in Nigeria usually ranges from ₦600,000 to ₦1,200,000.

While Starlink's TCO seems higher at first because of the expensive hardware, the monthly subscription fees are fairly close to those of fixed broadband plans.