Starlink Becomes Nigeria’s Second Largest ISP: A Transformative…

Starlink, operated by SpaceX, has become Nigeria’s second-largest ISP, surpassing FiberOne Broadband with user growth from 23,897 to 65,564 in just a year. Despite higher subscription costs and ongoing regulatory challenges, it has capitalized on the demand for high-speed internet, achieving speeds up to 250 Mbps. Spectranet remains the market leader but has seen a decline in subscribers. Starlink’s future is intertwined with addressing mobile connectivity and pricing concerns.

Starlink, the satellite internet service offered by SpaceX, has emerged as Nigeria’s second-largest internet service provider (ISP), surpassing FiberOne Broadband Limited in the fourth quarter of 2024, according to data from the Nigerian Communications Commission (NCC). The service’s user base grew significantly, increasing from 23,897 subscribers in 2023 to 65,564 by the end of 2024, despite its higher pricing. Starlink’s high-speed connectivity, achieving speeds up to 250 Mbps, is a key factor in its rapid growth, outpacing most local ISPs.

In contrast, Spectranet maintains its position as the market leader, although it has experienced a decline in subscribers, falling from 113,869 at the end of 2023 to 105,441 in Q3 2024, a drop of 8,428 users, according to NCC data. Spectranet’s subscriber figure remained stagnant in Q4. Unlike Starlink’s satellite-based service, Spectranet relies on fiber and terrestrial wireless networks that necessitate high costs for right-of-way fees, tower installations, and infrastructure for power.

Starlink’s expansion coincides with increasing consumer dissatisfaction regarding the inconsistent internet service provided by mobile operators and ISPs. The satellite provider continues to enhance its global satellite network, improving speeds and reducing latency. By February 2025, SpaceX had successfully launched 8,039 Starlink satellites, with 7,082 still in orbit and operational.

“As far as them (Starlink) being the second-largest ISP now, it makes sense,” stated Ladi Okuneye, CEO of UniCloud, an ISP. He noted that the inherent versatility of satellite technology enables connectivity without geographical restrictions faced by fiber or terrestrial systems.

In December 2024, Starlink announced an increase in its Nigerian monthly subscription fees, doubling the cost of its standard residential plan from ₦38,000 to ₦75,000. New customers would face this price while existing users were to transition to the new rates on January 27, 2025; however, the company paused this adjustment due to rising demand.

Starlink has faced regulatory challenges regarding pricing adjustments in Nigeria, notably when the NCC blocked a prior tariff increase attempt, citing improper procedures. Approval for the new rates was eventually granted on February 4, 2024, permitting telecom operators to raise their prices. While competitors like MTN Nigeria and Airtel Nigeria have implemented increases, Starlink has yet to enforce this change.

Despite its rapid proliferation, Starlink has limitations with fixed-location service access, which is not ideal for mobile users. In 2024, the company commenced rolling out satellite-to-phone connectivity to address mobile connectivity gaps, but this feature has yet to arrive in Africa. As the demand for dependable internet access rises, Starlink’s increasing presence in Nigeria marks a pivotal transition in the broadband landscape, though regulatory challenges, pricing issues, and mobile connectivity limitations are critical to its sustained success.

In conclusion, Starlink’s rapid ascent to being Nigeria’s second-largest ISP reflects a significant shift in the country’s internet service landscape. While it offers advanced satellite technology and high-speed connectivity that meet growing consumer demands, challenges such as regulatory hurdles, pricing adjustments, and the need for mobile connectivity solutions remain essential considerations for its future growth and sustainability in the market.

Original Source: techcabal.com