Starlink, a satellite internet service by SpaceX, has climbed to become the second-largest ISP in Nigeria, surpassing FiberOne Broadband Limited in Q4 2024, as indicated by data from the Nigerian Communications Commission (NCC). Despite its higher pricing, Starlink’s user base more than doubled in a year, growing from 23,897 subscribers in 2023 to 65,564 by the close of 2024. This rapid expansion showcases the rising demand for its high-speed connectivity offering speeds of up to 250 Mbps, which outperforms most local ISPs.
Although experiencing a decline in subscribers, Spectranet maintains its position as the market leader. The subscriber count decreased from 113,869 at the end of 2023 to 105,441 in Q3 2024, indicating a loss of 8,428 users, according to NCC data. This number remained stable in Q4. Unlike Starlink, which functions through satellite technology, Spectranet relies on fiber and terrestrial wireless networks, both necessitating costly right-of-way fees, tower installations, and power infrastructure.
Starlink’s growth coincides with increasing consumer dissatisfaction regarding the poor internet quality provided by mobile network operators and ISPs. Unlike its competitors, the satellite internet provider is actively expanding its satellite network globally, enhancing speeds, minimizing latency, and improving service reliability. By February 2025, SpaceX had deployed 8,039 Starlink satellites, with 7,082 in orbit and 7,049 operational.
Commenting on Starlink’s rise as the second-largest ISP, Ladi Okuneye, CEO of UniCloud, an ISP, remarked, “Satellite technology’s universal reach allows for connecting customers in diverse locations without the limitations of fiber or terrestrial wireless solutions.”
In December 2024, Starlink announced an increase in its monthly subscription fees in Nigeria, doubling the cost of its standard residential service from ₦38,000 to ₦75,000 per month. The surge impacted new customers, while existing users were slated to transition to the new rate on January 27, 2025. However, due to escalating demand, Starlink postponed the tariff adjustment.
Starlink previously encountered pricing challenges in Nigeria. In October 2024, the Nigerian Communications Commission blocked an earlier attempt to raise tariffs, citing non-compliance with regulatory procedures. The NCC later sanctioned the hike on February 4, 2025, permitting telecom operators to adjust their prices. While operators like MTN Nigeria, Airtel Nigeria, and Smile Communications raised their prices, Starlink has yet to implement the increase.
Despite its rapid expansion, Starlink faces constraints. Presently, subscribers can only access the service at fixed locations, posing challenges for mobile users seeking continuous connectivity while on the move. In 2024, Starlink initiated the rollout of satellite-to-phone connectivity to address mobile dead zones, a service not yet available in Africa.
As the need for reliable internet access grows, Starlink’s increased presence in Nigeria signals a shift in the country’s broadband landscape. However, enduring regulatory obstacles, pricing uncertainties, and mobile connectivity issues remain crucial considerations for its sustained success.