Starlink has become Nigeria’s second-largest ISP, overtaking FiberOne Broadband Limited by significantly increasing its subscriber base from 23,897 in 2023 to 65,564 by the end of 2024. Spectranet remains the market leader despite a decline in subscribers. Starlink offers superior internet speeds through satellite technology but faces challenges with pricing and mobile connectivity.
Starlink, operated by SpaceX, has ascended to become Nigeria’s second-largest internet service provider (ISP) as of Q4 2024, surpassing FiberOne Broadband Limited, according to the Nigerian Communications Commission (NCC). This notable growth is evidenced by a significant increase in its subscriber base from 23,897 in 2023 to 65,564 by the end of 2024, largely due to the demand for high-speed connectivity that reaches up to 250 Mbps, far exceeding local competitors’ offerings.
Although Spectranet maintains its position as the leading ISP, it experienced a drop in subscribers, declining from 113,869 at the end of 2023 to 105,441 by Q3 2024, a decrease of 8,428 users as reported by the NCC. The subscriber count remained constant through Q4 2024. Spectranet operates primarily on fiber and terrestrial wireless networks, which incur hefty costs related to right-of-way fees and infrastructure requirements, differentiating it from Starlink’s satellite-based service.
Starlink’s expansion occurs alongside increasing consumer dissatisfaction with the internet quality provided by mobile network operators and traditional ISPs. The satellite service’s global satellite network expansion enhances internet speed, reduces latency, and increases service reliability. By February 2025, SpaceX had successfully launched 8,039 Starlink satellites, with 7,082 in orbit and 7,049 operational.
Ladi Okuneye, CEO of UniCloud, commented on Starlink’s growth, stating, “As far as them (Starlink) being the second-largest ISP now, it makes sense. Satellite technology’s ubiquitous nature means you can connect a customer today in Ikoyi and another in Ikot Ekpene without being restricted by the geographical limitations of fiber or terrestrial wireless solutions.”
In December 2024, Starlink announced a significant increase in its monthly subscription fees in Nigeria, which unexpectedly doubled the cost from ₦38,000 to ₦75,000 per month for new customers. Existing users were scheduled to transition to the increased rate by January 27, 2025; however, the price adjustment was postponed due to rising demand for services.
Starlink previously experienced pricing challenges in Nigeria when the NCC blocked an attempt to increase tariffs in October 2024, citing a failure to adhere to regulatory procedures. A subsequent price adjustment was approved on February 4, 2024, allowing telecom operators to raise their rates. Unlike other providers such as MTN Nigeria and Airtel Nigeria, Starlink has yet to enact this pricing adjustment.
Despite its rapid growth trajectory, Starlink encounters significant limitations, particularly as its service presently requires a fixed location, complicating mobile connectivity. In 2024, Starlink initiated efforts to roll out satellite-to-phone connectivity to address mobile dead zones, although this service has not yet been implemented in Africa. As the demand for dependable internet access rises, Starlink’s growing presence in Nigeria reflects a transformation in the country’s broadband landscape, despite facing regulatory challenges, pricing issues, and mobile service capabilities.
In conclusion, Starlink has emerged as Nigeria’s second-largest ISP, notably increasing its subscriber numbers due to high-speed satellite services that surpass competitors. While Spectranet remains the market leader, it faces declining subscriptions. As Starlink expands its global network, it faces challenges, including pricing adjustments and mobile connectivity limitations. The evolving landscape indicates a shift in broadband access in Nigeria, highlighting the importance of regulatory compliance and market adaptation for long-term success.
Original Source: techcabal.com
