Starlink displaces FiberOne to become Nigeria’s second largest ISP by Subscribers

Starlink Internet Services Nig. Ltd has displaced FiberOne Broadband Ltd to claim Nigeria’s second largest internet service provider (ISP) spot, reaching 65,564 subscribers by Q3 2024, according to a Nigerian Communications Commission (NCC) report. 

Since launching in Nigeria in January 2023, the satellite internet provider, a subsidiary of SpaceX, has expanded in the country’s connectivity market, overtaking local competitors. Starting with 11,207 subscribers in Q3 2023, Starlink grew to 23,897 by Q4 2023 and added 41,667 users in the first nine months of 2024. 

This surge displaced FiberOne Broadband Ltd from the second spot, though Spectranet holds the lead with 105,441 subscribers. 

According to the NCC reports, Nigeria’s 124 ISPs collectively serve 307,946 subscribers, a small fraction compared to the 132.4 million connected by mobile operators MTN, Airtel, Globacom, and 9mobile. Starlink’s rapid rise in under two years contrasts with the slower growth of many local ISPs, some of which have operated for decades.

Why Satellite?

Starlink distinguishes itself in Nigeria’s internet market through its key features. It provides download speeds of 100–200 Mbps, outpacing the 10–50 Mbps offered by fixed wireless access (FWA) and wireless-to-the-x (WTTx) networks. 

Also, its satellite technology reaches remote and underserved areas where fixed networks struggle, avoiding the infrastructure challenges faced by fibre systems. 

Likewise, the DIY installation process further simplifies access, offering a plug-and-play solution that contrasts with the complexities of traditional satellite services. This accessibility has made reliable connectivity available to a broader range of users, from rural communities to urban businesses seeking alternatives to inconsistent local options.

Also read: Starlink increases monthly subscription cost to N75,000 from January 27

Capacity limits growth

Despite its success, Starlink faces hurdles that could slow its momentum. Last year, the company raised its monthly subscription price from N38,000 to N75,000, a move the NCC contested as an unapproved hike, sparking regulatory friction. 

However, demand has continued to climb, forcing Starlink to suspend new orders in major cities like Lagos, Abuja, and Port Harcourt in 2023. By October 2024, terminals were sold out in Benin City and Warri, reflecting capacity constraints. 

Latency issues, ranging from 100–200ms due to distant ground stations or points of presence (PoPs), also persist. Starlink is addressing this by developing new PoPs, with a recent one in Kenya reducing global latency from 57ms to 44ms. Similar upgrades in Nigeria could improve service.

Market shifts

Starlink’s expansion across the country is reshaping Nigeria’s internet sector. Spectranet, the leading ISP, lost 8,428 subscribers since Q4 2023, signalling pressure from satellite providers. Meanwhile, mobile operators dominate with 132.4 million users, dwarfing the ISP market

Starlink targets a niche—users willing to pay for quality—rather than competing for mass-market share. 

This NCC data highlights Nigeria’s growing demand for connectivity, yet traditional ISPs are losing ground to innovative entrants. Starlink’s ability to serve areas beyond the reach of established providers, despite its higher cost, drives its appeal.

Recall that the satellite internet company announced a 100 per cent increase in the cost of its monthly subscription packages for users in Nigeria. Going forward, the Standard (Residential) package, which previously will now cost N38,000, will now cost users N75,0000.

Starlink’s trajectory in Nigeria depends on overcoming current challenges. Regulatory disputes and sold-out terminals limit new subscriptions, particularly in urban hubs where demand is highest. If these issues persist, growth could stall, but the company’s efforts to enhance infrastructure, like new PoPs, show commitment to its user base. 

For its 65,564 subscribers, Starlink addresses a critical need in a market long underserved by reliable options. As Nigeria’s internet landscape evolves, Starlink’s role as a disruptor underscores a shift toward satellite solutions in Africa’s largest economy.

Also read: Starlink regulatory talks in South Africa stalls as Elon Musk and Donald Trump’s raise inquiry