In a significant move aimed at making satellite Internet services more accessible in Nigeria, Starlink, the satellite Internet service unit of SpaceX, led by U.S. tech mogul Elon Musk, has slashed the price of its hardware by 45 percent. The price reduction comes on the heels of a 112 percent surge that saw the cost of its hardware skyrocket to N800,000 in March.
According to a recent price update released by the company, the Starlink Internet router, previously priced at N800,000 as of April 9, is now available at N440,000. Despite this significant reduction in hardware costs, the monthly subscription for the Internet service remains steady at N38,000 per month.
Currency resurgence fuels price adjustment
The recent crash in hardware prices to N440,000 is linked to the recent strengthening of the Nigerian naira against the U.S. dollar. The local currency has experienced notable gains in both the official and parallel markets, leading to renewed confidence among investors.
The Central Bank of Nigeria’s efforts to address foreign exchange backlogs, initiated by the apex bank governor, Olayemi Cardoso, have further contributed to the currency’s revival. Recent initiatives have seen $1.5 billion cleared from these backlogs, alleviating pressure on the exchange rate.
Starlink’s pricing shift in Nigeria
Starlink’s entry into the Nigerian market, announced in January last year, generated significant 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, Starlink transitioned to naira pricing upon its official launch, against the backdrop of fluctuating exchange rates. However, the recent adjustment in hardware prices reflects the company’s commitment to making its services more accessible to the Nigerian market.
Tesla slump impacts Musk’s net worth
Starlink’s success has helped boost SpaceX’s value to $180 billion by December 2023. However, Musk, the force behind Starlink, has faced fluctuations in his wealth since Dec. 31, 2023, caused by the over 30 percent slump in Tesla shares this year.
Musk’s stake in SpaceX has added $71.2 billion to his wealth, but he’s seen a 19-percent decrease overall this year. The decline is mainly due to Tesla’s struggling shares, which have cost him $43.5 billion. His net worth now sits at $186 billion, placing him third among the world’s richest, after Jeff Bezos and Bernard Arnault.
Starlink’s recent price cut is a positive move, especially in Nigeria, where it offers hope for better Internet access nationwide. This shows the importance of adapting to local needs and economic conditions as markets like Nigeria evolve.
