Starlink Surpasses FiberOne as Nigeria’s Second Largest Internet Provider

Starlink has become Nigeria’s second-largest internet service provider, surpassing FiberOne Broadband in Q4 2024, with subscribers increasing from 23,897 to 65,564 in one year. Despite its growth, Spectranet remains the market leader despite a subscriber decline. Starlink’s expansion coincides with widespread consumer dissatisfaction with local ISPs. Regulatory challenges persist, including pricing issues. Starlink must also address its limitations regarding mobile connectivity to succeed long-term.

Starlink, the satellite internet service by SpaceX, has increasingly established itself as Nigeria’s second-largest internet service provider (ISP), having outperformed FiberOne Broadband Limited in the fourth quarter of 2024, as reported by the Nigerian Communications Commission (NCC). The premium service more than doubled its subscriber base within a year, rising from 23,897 in 2023 to 65,564 by the end of 2024, indicating robust demand for its high-speed connectivity, offering speeds of up to 250 Mbps.

Despite its decline in subscribers, Spectranet maintains its position as the market leader. Its subscriber count fell from 113,869 at the close of 2023 to 105,441 by the third quarter of 2024, reflecting a loss of 8,428 users, with no significant change by the fourth quarter. Unlike Starlink’s satellite operation, Spectranet relies on fiber and terrestrial wireless connections, which incur high right-of-way fees, tower installation costs, and necessary power infrastructure.

Starlink’s surge coincides with mounting consumer dissatisfaction regarding the inconsistent quality of internet services provided by various mobile operators and ISPs. In contrast, Starlink is expanding its satellite network globally, enhancing speed, reducing latency, and improving overall service reliability. As of February 2025, SpaceX has launched a total of 8,039 Starlink satellites, with 7,082 remaining in orbit, of which 7,049 are operational.

Ladi Okuneye, CEO of UniCloud, remarked, “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, raising the standard residential service from ₦38,000 to ₦75,000. This adjustment primarily affected new customers, while existing users were set to transition to the updated rate by January 27, 2025. However, in response to rising demand, Starlink postponed this tariff adjustment.

Starlink previously encountered regulatory challenges regarding pricing, notably in October 2024 when the NCC obstructed a tariff increase due to inadequate compliance with regulatory procedures. The NCC subsequently approved the increase on February 4, 2024, permitting telecom operators to adjust their prices accordingly. Despite other operators like MTN Nigeria and Airtel Nigeria increasing their tariffs, Starlink has yet to implement this rise.

Despite robust growth, Starlink faces several limitations, particularly with respect to location-based service utilization, thereby hindering mobile connectivity. Although Starlink initiated its rollout of satellite-to-phone connectivity in 2024 to address mobile dead zones, this service has not yet been introduced in Africa.

As the demand for reliable internet access escalates, Starlink’s evolving presence in Nigeria indicates a transformation within the country’s broadband sector. Nonetheless, regulatory challenges, pricing issues, and mobility constraints will be critical factors affecting Starlink’s long-term viability in the region.

In conclusion, Starlink’s emergence as Nigeria’s second-largest ISP underscores the growing demand for high-speed internet services. While it faces pricing and regulatory hurdles, as well as challenges with mobile connectivity, its expansive growth reflects a shift in the broadband landscape. The company’s ability to address these challenges will be crucial for its continued success in Nigeria’s competitive market.

Original Source: techcabal.com