Starlink has become Nigeria’s second-largest ISP, with subscribers rising from 23,897 to 65,564 in a year. Spectranet still leads the market despite a decline. Starlink’s strength lies in its satellite technology, which overshadows local ISPs. It announced a subscription fee increase, although high demand has postponed its implementation. While Starlink shows promise in Nigeria, it faces challenges in terms of regulations and mobile usage.
Starlink, a satellite internet service by SpaceX, has ascended to become Nigeria’s second-largest internet service provider (ISP), outpacing FiberOne Broadband Limited in Q4 2024, according to data from the Nigerian Communications Commission (NCC). Its user base more than doubled from 23,897 subscribers in 2023 to 65,564 by the end of 2024, demonstrating strong demand for its high-speed connections, offering speeds up to 250 Mbps.
In contrast, Spectranet remains the market leader despite a decline in subscribers. This ISP’s base dropped from 113,869 in 2023 to 105,441 in Q3 2024. Its reliance on fiber and terrestrial networks incurs significant costs associated with right-of-way fees and infrastructure installations, unlike Starlink’s satellite model.
Starlink’s growth can be attributed to increasing complaints about poor internet quality from mobile operators and ISPs. The satellite provider continues to enhance its global satellite network, effectively improving connectivity speeds and reducing latency. As of February 2025, SpaceX had launched a total of 8,039 Starlink satellites, with over 7,000 remaining operational.
Ladi Okuneye, CEO of UniCloud, noted that Starlink’s position as the second-largest ISP aligns with the advantages of satellite technology, which allows connections across diverse geographical areas without the limitations of terrestrial systems.
In December 2024, Starlink announced a significant increase in its monthly subscription fees, raising the standard residential cost from ₦38,000 to ₦75,000. The new rate would initially apply to new users, while existing customers were to transition to this fee in January 2025. However, due to growing demand, the implementation of the new rates was put on hold.
Starlink has previously encountered regulatory challenges when the NCC blocked a prior fee increase in October 2024, citing procedural issues. The NCC subsequently approved a tariff hike in February 2024, allowing operators to adjust prices, although Starlink has not yet implemented these adjustments.
Despite its rapid growth and plans for future expansion, Starlink faces challenges. Currently, the service is limited to fixed locations, posing difficulties for mobile users. In 2024, the company started rolling out satellite-to-phone services to address mobile connectivity, but this feature has not yet been introduced in Africa.
Starlink’s continued growth in Nigeria reflects a pivotal change in the country’s broadband landscape, yet it must navigate regulatory hurdles, pricing issues, and the limitations of mobile connectivity to secure long-term success.
Starlink’s rise to become Nigeria’s second-largest ISP highlights the increasing demand for high-speed satellite internet as it contrasts with the declining subscriber base of traditional ISPs like Spectranet. With its competitive pricing and technological advantages, Starlink is poised for growth; however, it must address regulatory constraints and develop mobile connectivity to solidify its position in the market. The ongoing developments emphasize a transformative moment within Nigeria’s internet landscape.
Original Source: techcabal.com
