Elon Musk
Elon Musk’s internet service company, Starlink, has slashed the price of its hardware by 45% in Nigeria.
The Starlink internet router, which was being sold for N800,000 as of April 9, now costs N440,000, according to a new price update released by the company on Wednesday. However, the monthly subscription for the internet service remains unchanged at N38,000 per month.
Until about a month, the hardware had been selling for N378,000. An increment implemented in early March apparently due to the declining value of the naira saw the price jump to N800,000.
While the company did not state any reason for the price slash, the recent appreciation of the naira against the US dollar and other foreign currencies may have influenced Starlink’s decision.
Meanwhile, Nairametrics gathered that SpaceX’s internet company also slashed its hardware price in South Africa as well. Although Starlink is not licensed in South Africa, where Musk was born, South Africans are accessing its service locally using a global or regional roaming subscription.
Confirming that it indeed has a market in the country, Starlink in an advertisement on X earlier this week, said it had slashed its hardware price from ZAR 12,000 to ZAR 6,800, representing a 43% decrease.
It was reported that the naira had gained momentum and hit its highest level against the greenback since it was devalued in January 2024. The Nigerian currency appreciated for the 4th consecutive week to settle at N1,245 against the dollar amid amplified confidence in the naira.
The Nigerian local currency ended the week at N1,251.05/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), up against the US dollar at the official window for the fourth straight trading day in April 2024.
The CBN, led by Governor Olayemi Cardoso, has implemented several policies to increase local dollar liquidity and free up the naira.
Starlink’s usage in Nigeria
Despite its higher costs compared with local ISPs, Starlink, which announced its presence in Nigeria in January 2023, has sparked high interest among Nigerians who are eager to change their service providers.
- The ubiquitous status of its satellite service also encourages people in areas with poor internet networks to go for Starlink.
- According to the Internet Service Providers (ISPs) data released by the Nigerian Communications Commission (NCC), Starlink is now one of the leading ISPs in Nigeria in terms of customer numbers. As of Q3 2023, Starlink Nigeria’s customer base stood at 11,207.
- Many local ISPs that have been in operation in Nigeria for several years are currently having less than that number of customers.
Although Starlink officially announced its presence in Nigeria in January 2023, Nigerians had been pre-ordering its hardware since 2022. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
