Starlink, the satellite Internet service unit of SpaceX, led by U.S. tech mogul Elon Musk, has raised the prices of its hardware by a staggering 112 percent.
The move, which has caught the attention of consumers and industry observers alike, has seen the cost of the Starlink Internet router surge from N378,000 to N800,000, marking a considerable hike in accessibility.
Despite the surge in hardware costs, the monthly subscription fee for Starlink’s Internet service remains unchanged at N38,000 per month, providing some respite for existing subscribers amidst the price adjustment.
Impact of recent naira devaluation: Starlink’s pricing shift amidst Nigeria’s currency woes
While Starlink has not officially addressed the reasons behind the price increment, the timing of the move coincides with Nigeria’s recent currency devaluation. The country, in its ongoing efforts to navigate a complex exchange rate system and revitalize its struggling economy, witnessed its second devaluation within eight months. This devaluation led to a significant depreciation of the naira against the dollar, with rates on the official market plummeting to 1,530, closely mirroring figures on the black market.
The recent devaluation is part of broader market-friendly reforms initiated by Nigerian President Bola Tinubu in June 2023. These reforms aimed to dismantle long-standing currency pegs, which artificially maintained the naira’s high value but contributed to economic imbalances. As a result, the naira experienced a substantial devaluation, losing over 67 percent of its value, setting the stage for the current economic landscape.
Starlink’s presence in Nigeria
Starlink’s entry into the Nigerian market, officially announced in January last year, was met with anticipation and pre-orders from consumers. Promising high-speed Internet connectivity with download speeds of up to 250 Mbps and upload speeds of up to 35 Mbps, Starlink aimed to address the connectivity needs of both consumers and businesses in Nigeria.
Initially quoting its prices in dollars, with hardware priced at $600 and monthly subscriptions at $43, Starlink transitioned to naira pricing upon its official launch. However, the conversion took place against the backdrop of fluctuating exchange rates, with the official dollar exchange rate standing at around N450/$1 at the time.
Starlink’s decision to raise hardware prices amidst Nigeria’s currency devaluation underscores the challenges posed by economic instability on technological advancements and consumer affordability. As the country navigates its economic reforms, the impact on sectors such as telecommunications remains a focal point for both policymakers and stakeholders.
In light of these developments, the affordability and accessibility of high-speed Internet services like Starlink’s will continue to be closely monitored, reflecting broader concerns regarding technological equity and economic resilience in Nigeria’s evolving landscape
