Starlink, the internet venture from billionaire entrepreneur Elon Musk, has announced a substantial reduction in the price of its hardware in Nigeria.
The cost of the Starlink internet router has been cut by 45%, from N800,000 to N440,000, as confirmed by the company’s latest price update on Wednesday. However, the monthly subscription fee remains at N38,000.
This pricing adjustment follows a previous price hike in early March, where the hardware cost soared to N800,000 from N378,000, attributed to the naira’s declining value. Although Starlink has not explicitly stated the reasons for the recent price reduction, analysts speculate that the naira’s appreciation against the dollar might have influenced the decision.
The currency’s recovery is notable, with Nairametrics reporting a continuous appreciation, reaching a peak against the dollar since its devaluation in January 2024. The Nigerian currency’s strength, reflected in the fourth consecutive week of gains, has likely impacted Starlink’s pricing strategy.
Moreover, the trend of price cuts extends beyond Nigeria. Starlink reduced hardware costs in South Africa by 43% despite the region’s lack of official licensing. South African customers access Starlink services through global or regional roaming subscriptions.
Starlink’s market presence in Nigeria has grown significantly since its introduction in January 2023. Despite the premium pricing compared to local internet service providers (ISPs), the company has attracted a substantial customer base, with over 11,000 subscribers as of the third quarter of 2023. This customer interest is driven by Starlink’s promise of reliable internet access, particularly in regions with poor connectivity.
