Starlink has become Nigeria’s second-largest ISP as of Q4 2024, with user numbers soaring from 23,897 to 65,564. While Spectranet remains the market leader, its subscriber base has dropped. Consumer dissatisfaction with local ISPs fuels Starlink’s growth, but it faces challenges regarding pricing and limited mobile connectivity.
Starlink, operated by SpaceX, has emerged as Nigeria’s second-largest internet service provider, surpassing FiberOne Broadband Limited as of Q4 2024. This achievement is highlighted by the Nigerian Communications Commission (NCC) data indicating Starlink’s user base exploded from 23,897 in 2023 to 65,564 at the end of 2024, showcasing the demand for its superior high-speed internet service that offers up to 250 Mbps.
Despite a decrease in subscribers, Spectranet maintains its position as the market leader, with a fall in users from 113,869 to 105,441 by Q3 2024. The NCC data shows this number remained stable in Q4. Distinctly, Spectranet relies on expensive fiber and terrestrial wireless networks as opposed to Starlink’s satellite service, which operates without geographical constraints associated with traditional infrastructure.
Starlink’s impressive growth aligns with widespread consumer dissatisfaction regarding the quality of internet services provided by mobile operators and local ISPs. The company is actively enhancing its global satellite network to increase speeds and reduce latency. As of February 2025, SpaceX has launched a total of 8,039 Starlink satellites, with 7,049 currently operational.
Ladi Okuneye, CEO of UniCloud, commented on Starlink’s growing dominance: “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 disclosed an increase in its subscription rates, raising the price of its standard residential service from ₦38,000 to ₦75,000 per month. Existing users were scheduled to transition to these rates on January 27, 2025; however, this increase was temporarily suspended due to rising demand for services.
Earlier, in October 2024, the NCC blocked Starlink’s attempted tariff hike for not adhering to regulatory procedures. The NCC subsequently approved the increase in February 2024, permitting telecom operators to adjust prices. Despite other operators raising their tariffs, Starlink’s price adjustment has not been instituted yet.
However, challenges persist for Starlink, such as limitations related to fixed location usage, which hinders mobile connectivity. In 2024, the company initiated a rollout for satellite-to-phone connectivity to minimize mobile dead zones, although this service is not available in Africa yet.
The rise of Starlink in Nigeria highlights a significant transition in the country’s broadband network. Nevertheless, issues surrounding regulation, pricing, and mobile accessibility will be crucial for Starlink’s sustained success in the region.
In summary, Starlink has rapidly ascended to the position of Nigeria’s second-largest ISP, driven by an increasing desire for high-speed internet amid existing dissatisfaction with local services. While it surpasses competitors in user base growth, Spectranet remains the market leader despite a decline in subscribers. Starlink’s subscription pricing policies and geographical constraints pose challenges moving forward. To ensure its long-term success, the company must navigate regulatory issues and enhance mobile connectivity options.
Original Source: techcabal.com
