Starlink, the satellite internet service operated by SpaceX, has become Nigeria’s second-largest internet service provider (ISP), overtaking FiberOne Broadband Limited in Q4 2024, according to data from the Nigerian Communications Commission (NCC). Despite its premium pricing, Starlink’s user base more than doubled within a year, surging from 23,897 subscribers in 2023 to 65,564 by the end of 2024. This rapid growth reflects the increasing demand for its high-speed connectivity, which delivers speeds of up to 250 Mbps—far exceeding what most local ISPs offer.
Despite a decline in subscribers, Spectranet remains the market leader. Its subscriber base declined from 113,869 at the end of 2023 to 105,441 in Q3 2024, a loss of 8,428 users, according to NCC data. This number remained unchanged in Q4. Unlike Starlink, which operates via satellite, Spectranet depends on fiber and terrestrial wireless networks—both of which require expensive right-of-way fees, tower installations, and power infrastructure.
Starlink’s growth comes amid growing consumer complaints of persistent poor internet quality offered by mobile network operators and ISPs. Unlike its competitors, the satellite internet provider continues to expand its satellite network globally, improving speeds, reducing latency, and enhancing service reliability. As of February 2025, SpaceX had launched 8,039 Starlink satellites, 7,082 of which were still in orbit and 7,049 operational.
“As far as them (Starlink) being the second-largest ISP now, it makes sense,” said Ladi Okuneye, CEO of UniCloud, an ISP. “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 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 hike affected new customers, while existing users were set to transition to the new rate on January 27, 2025. However, as demand surged, Starlink put the tariff adjustment on hold.
This wasn’t the first time Starlink faced pricing challenges in Nigeria. In October 2024, the Nigerian Communications Commission (NCC) blocked a previous attempt to raise tariffs, saying the company had not followed the proper regulatory procedures. The NCC later approved the hike on February 4, 2024, allowing telecom operators to adjust their prices. However, while operators such as MTN Nigeria, Airtel Nigeria, and Smile Communications have increased their prices, Starlink has yet to implement the increase.
Despite its rapid growth, Starlink faces limitations. Currently, subscribers can only use the service in a fixed location, making it difficult for mobile users to stay connected on the move. In 2024, Starlink began rolling out satellite-to-phone connectivity to eliminate mobile dead zones, but this service has not yet reached Africa.
As demand for reliable internet access grows, Starlink’s expanding presence in Nigeria signals a shift in the country’s broadband landscape. However, regulatory hurdles, pricing concerns, and mobile connectivity challenges remain key factors in its long-term success.
