Starlink, SpaceX’s satellite Internet service unit founded by US tech entrepreneur Elon Musk, has boosted hardware prices by a stunning 112 percent.
The move, which has piqued the interest of customers and industry experts alike, has raised the cost of the Starlink Internet router from N378,000 to N800,000, resulting in a significant increase in accessibility.
Despite the increase in hardware expenses, the monthly membership rate for Starlink’s Internet service remains at N38,000 per month, providing some relief to existing users during the price adjustment.
While Starlink has not publicly stated the reasons for the price increase, the timing of the move is consistent with Nigeria’s recent currency devaluation. The country experienced its second devaluation in eight months as part of its efforts to improve its faltering economy and negotiate a convoluted exchange rate system. This devaluation resulted in a severe decline of the naira versus the dollar, with official market rates falling to 1,530, roughly matching black market levels.
The latest devaluation is part of broader market-friendly measures announced by Nigerian President Bola Tinubu in June 2023. These measures sought to eliminate long-standing currency pegs, which artificially maintained the naira’s high value while contributing to economic imbalances. As a result, the naira underwent a significant devaluation, losing more than 67% of its value, laying the groundwork for the current economic situation.
Consumers eagerly anticipated and pre-ordered Starlink’s arrival into the Nigerian market, which was formally announced in January last year. Starlink promised high-speed Internet connectivity with download rates of up to 250 Mbps and upload speeds of up to 35 Mbps, aiming to meet the connectivity needs of Nigerian consumers and enterprises alike.
Starlink initially quoted its rates in dollars, with hardware costing $600 and monthly memberships costing $43, but switched to naira pricing when it officially launched. However, the conversion occurred against the backdrop of shifting exchange rates, with the official dollar exchange rate hovering about N450/$1 at the time.
Starlink’s choice to boost hardware pricing in the middle of Nigeria’s currency devaluation highlights the issues that economic volatility poses to technical advancement and customer affordability. As the country implements economic changes, the impact on industries like telecommunications remains a priority for policymakers and stakeholders.
Given these changes, the pricing and accessibility of high-speed Internet services like Starlink will be keenly studied, reflecting broader concerns about technological justice and economic resilience in Nigeria’s changing landscape.