Nigerians have been thrown into a joyous mood as an internet service company, Starlink slashed the price of its hardware by 45% following the strengthening of the naira against the dollar.
The satellite internet service which is owned by Elon Musk’s SpaceX was initially sold for ₦800,000 in April and now costs ₦440,000. However, the standard subscription to the internet service remains unchanged at ₦38,000 per month.
Starlink’s hardware used to cost about ₦378,000 which is an increment implemented in early March apparently due to the declining value of the naira saw the price jump to ₦800,000.
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.
Naira value
Earlier this week, Nairametrics reported that the Nigerian naira has experienced a surge in value, reaching its highest point against the US dollar since its devaluation in January 2024. The currency has appreciated for the fourth consecutive week, with the exchange rate settling at N1,245 per dollar. This increase in value is attributed to the growing 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 And Its Emergence In Africa
Starlink made its way into Africa in 2023 to deliver fast internet connectivity to remote regions. With a download speed of 100Mbps, the service surpasses the average download speed for mobile internet in sub-Saharan Africa by approximately tenfold, addressing the issue of limited broadband penetration in the region. This exceptional high-speed capability positions Starlink as a viable and promising solution for the African market.
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However, the implementation of Starlink in Africa has faced numerous obstacles, encompassing apprehensions regarding cost-effectiveness and regulatory barriers. Despite the significant potential of this service in enhancing internet connectivity within the region, resolving these challenges will be imperative for its triumph and extensive acceptance throughout the continent.
Its Usage In Nigeria
Despite its higher costs compared with local ISPs, Starlink, which announced its presence in Nigeria in January 2023, has generated significant interest among Nigerians looking to switch service providers, despite the higher costs associated with the global ISP.
- The widespread availability of its satellite service also motivates individuals in regions with inadequate internet infrastructure to opt 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 the internet service company made its debut in Nigeria in January 2023, Nigerians had already been placing pre-orders for its hardware since 2022. Initially, the company priced its products at $600 for the hardware and $43 for the subscription in dollars but switched to naira after its official launch.
South Africa Starlink Price Got Slashed Too
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.
