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Starlink Raises Hardware Price by 112% in Nigeria Amid Currency Decline


Starlink Raises Hardware Price by 112% in Nigeria Amid Currency Decline

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Starlink Raises Hardware Price by 112% in Nigeria Amid Currency Decline

Elon Musk’s satellite internet venture, Starlink, has made significant waves in Nigeria, but recent developments have stirred the market. The company recently hiked the price of its hardware by a staggering 112%, raising eyebrows and prompting speculation about the reasons behind the drastic increase.

Formerly priced at ₦378,000, the Starlink internet router now commands a hefty ₦800,000 price tag. This sudden surge in cost has left many consumers reeling, especially considering that the monthly subscription fee remains unchanged at ₦38,000.

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While Starlink has not publicly addressed the price hike, analysts point to the ongoing depreciation of the Nigerian Naira against the US dollar as a probable cause. The Naira’s value has been steadily declining, plummeting from ₦907 to the dollar in December 2023 to ₦1,602 as of March 7, 2024, in the official market.

Despite the hefty price tag, Starlink’s popularity in Nigeria continues to soar. The company, which announced its entry into the Nigerian market in January 2023, has attracted significant attention from consumers eager to switch to a more reliable internet service provider.

One of Starlink’s key advantages is its satellite-based service, which appeals to users in areas with poor internet infrastructure. This ubiquity has contributed to Starlink’s rapid ascent, with the company emerging as one of the leading internet service providers (ISPs) in Nigeria. As of Q3 2023, Starlink boasted a customer base of 11,207, surpassing many local ISPs with years of operation.

It’s worth noting that while Starlink officially debuted in Nigeria in January 2023, pre-orders for its hardware had been ongoing since 2022. Initially priced in dollars at $600 for hardware and $43 for the monthly subscription, Starlink shifted to Naira pricing upon its official launch. However, the unified exchange rate led to subsequent price adjustments, culminating in the recent 112% hike.

In a bid to capture a larger market share, Starlink slashed its hardware prices by 21% between October and November last year, briefly offering the router at ₦299,500. However, this reduction was short-lived, as the price reverted to ₦378,000 on November 16.

As Starlink continues to navigate the Nigerian market, consumers remain vigilant amidst fluctuating prices and evolving competition. The recent price hike underscores the challenges posed by currency volatility and highlights the complexities of operating in Nigeria’s dynamic economic landscape.

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