Starlink becomes Nigeria’s second-largest ISP, displacing FiberOne

Elon Musk’s Starlink has achieved a significant milestone in Nigeria, emerging as the country’s second-largest Internet Service Provider (ISP) by subscriber count as of Q3 2024. According to data from the Nigerian Communications Commission (NCC), Starlink now boasts 65,564 active customers, surpassing FiberOne, which fell to third place with 33,010 subscribers.

This growth is remarkable for a service that launched in January 2023. Starlink added 41,667 new users in the first nine months of 2024, a sharp increase from its December 2023 total of 23,897 subscribers. Spectranet remains the market leader with 105,441 active users but has seen a decline from its previous total of 113,869 at the end of 2023.

Starlink’s satellite-based internet service is particularly appealing in areas where traditional ISPs struggle to provide reliable connectivity. Its ability to deliver high-speed internet even in remote regions has made it a popular choice despite higher costs. The service also benefits from its independence from ground infrastructure, making it less vulnerable to disruptions like cable cuts.

However, affordability remains a challenge. Starlink’s hardware costs around ₦440,000 (down from ₦800,000), and its monthly subscription fee recently increased to ₦75,000. Despite this, demand remains strong, with Starlink temporarily halting new orders in major cities like Lagos and Abuja due to capacity constraints.

While traditional ISPs like Spectranet and FiberOne face declining customer bases, Starlink’s rapid growth signals a shift in Nigeria’s internet landscape. The NCC reports that only 124 of the country’s 241 licensed ISPs currently have active customers, totaling about 307,946 users—far fewer than the 132.4 million internet subscriptions held by mobile network operators like MTN and Airtel.

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