Olalere Modupe
Nigeria’s internet market is experiencing notable changes as new technologies challenge traditional broadband infrastructure. While fiber-optic networks have long been the foundation for high-speed internet in urban areas, they face limitations such as slow rollout, congestion, and infrastructure gaps, especially outside major cities. Enter Starlink, Elon Musk’s satellite internet service, which offers an alternative by delivering broadband via a constellation of low-Earth-orbit satellites. By bypassing many of the physical constraints faced by fiber networks, Starlink aims to provide reliable internet access in underserved and hard-to-reach areas across the country.
Despite advancements in fiber connectivity, many Nigerians still encounter challenges like installation delays and varying speeds constrained by existing infrastructure. Starlink’s setup, which requires only a satellite dish and modem, presents a quicker option for accessing the internet, with advertised speeds up to 250 Mbps. In comparison, fiber connections frequently deliver speeds between 20 and 50 Mbps in practice due to network congestion. However, satellite internet also faces challenges such as weather dependency and latency that can affect user experience.
Since Starlink’s introduction to Nigeria in early 2023, its subscriber base has grown to over 65,000 by the end of 2024, reflecting a demand for alternatives to conventional broadband. Meanwhile, fiber remains vital for many urban customers and businesses, maintaining a dominant role in Nigeria’s telecommunications ecosystem. This evolving landscape is prompting both satellite and fiber providers to innovate and compete in improving internet quality and accessibility, ultimately expanding choices for Nigerian consumers.
The convenience of satellite service is especially valued by remote workers, businesses, and educational institutions who need consistent connectivity for video conferencing, streaming, and online learning. As Lagos-based telecom analyst Sadiq Mohammed explains, “Users don’t want to experience internet downtime during critical Zoom meetings or streaming. With Starlink, the experience is consistent in terms of speed and reliability”.
Fibre Providers Respond with Price Cuts and Hybrid Upgrades
Starlink’s rapid rise has put substantial pressure on fibre optic ISPs. Traditionally dominant companies like Spectranet and FiberOne have faced challenges with subscriber counts, with FiberOne dropping to third place as Starlink surged.
To stay competitive, fibre providers have adjusted prices and stepped up infrastructure investments. FibreOne and others have started offering hybrid fibre-wireless packages to combine the low latency of fibre with the flexibility of wireless, aiming to keep up with Starlink’s availability in hard-to-reach areas. An industry insider noted that “competition from satellite internet is driving fibre providers to improve offerings and meet evolving consumer expectations”.
Fibre services typically range from ₦50,000 to ₦100,000 per month, depending on speed and location, while Starlink’s premium pricing of approximately ₦38,000 (subsequently proposed to increase to ₦75,000) attracted both consumer interest and regulatory scrutiny. Although more expensive, Starlink’s dependability and straightforward installation justify the cost for many customers who have had frustrating fibre experiences.
Several fibre ISPs have responded by pushing for promotions, flexible subscriptions, and expanded last-mile connectivity to close the gap with Starlink. Nigerian Telecom spokesperson Ayodele Adeyemi said, “Starlink’s presence has forced us to rethink our network capacity and pricing. We are investing heavily in infrastructure to offer better speeds and reliability”.
Spectranet, Starlink, FibreOne Seize Control of Nigeria’s Shrinking ISP Market
Recent data shows that Spectranet remains Nigeria’s largest ISP despite subscriber declines, while Starlink and FibreOne have reclaimed their spots as the second and third-largest players, respectively. These three combined now control approximately 65% of Nigeria’s active internet user market.
Spectranet’s subscriber base declined from 113,869 at the end of 2023 to about 105,441 in Q3 2024 and further to 99,520 in Q2 2025. Despite this, it remains the market leader, underscoring its entrenched urban customer base and broad fibre network reach.
Starlink’s market share soared to around 28%, driven by rapid subscriber growth and increasing appeal in rural and semi-urban areas where fibre infrastructure remains sparse. FibreOne, after a dip, has rebounded alongside Starlink, regaining third position with over 33,000 subscribers as of late 2024.
Industry watchers note that Nigeria’s overall ISP market has shrunk as smaller players have exited due to infrastructure and regulatory challenges, leaving market dominance in the hands of these three major ISPs. This consolidation highlights the importance of service quality, infrastructure investments, and pricing strategies.
Capacity constraints remain an issue for Starlink in dense urban centers like Lagos and Abuja, where prolonged sign-up suspensions have been implemented to manage bandwidth. Meanwhile, fibre providers are intensifying their efforts in last-mile deployment and hybrid models to shield their market shares.
Regulation and Market Effects Foster Digital Inclusion
Starlink’s journey has involved regulatory milestones that reflect Nigeria’s evolving broadband ecosystem. The Nigerian Communications Commission (NCC) initially imposed a seven-month suspension on new Starlink activations in 2024 due to licensing reviews, but lifted the ban after compliance issues were addressed. This regulatory dance signals growing government acceptance of satellite internet as critical to expanding national broadband access.
NCC data highlights Starlink’s status as Nigeria’s second-largest ISP by subscriber numbers, overtaking major fibre companies like FibreOne, although market leader Spectranet still commands the top spot. Starlink’s rise contrasts with slight subscriber declines for fibre leaders, indicating a power shift.
However, challenges remain. In Q1 2025, Starlink briefly lost more than 6,000 subscribers amid customer pushback over price hikes and capacity constraints in dense urban areas like Lagos and Abuja, leading to sign-up freezes. The episode underscores the delicate balance of scaling services, managing costs, and meeting demand without alienating users.
On a broader level, Starlink’s growth is reshaping Nigeria’s internet ecosystem by adding healthy competition, expanding consumer choices, and accelerating broadband adoption. By reaching unserved and underserved areas, satellite internet is widening digital equity and enabling millions to participate more actively in the digital economy. This broad availability supports education, e-commerce, remote work, and innovation nationwide.
The market shakeup also encourages fibre providers to invest in last-mile infrastructure, upgrades, and bundled services, thus fueling a more dynamic broadband sector that benefits users across socioeconomic strata. Telecom analyst Sadiq Mohammed concludes, “While fibre remains the premium choice for speed, satellite internet like Starlink is filling crucial gaps in coverage and reliability, especially where infrastructure has been slow to catch up”.
Pioneering satellite internet technology from Starlink is changing the story of connectivity in Nigeria by challenging the dominance of fibre-optics and giving millions of people who couldn’t access broadband before access to it. As Starlink and other fibre ISPs compete, prices are falling, new ideas are emerging, and service models are becoming more varied. New rules recognise the important role that satellite internet plays in making technology available to everyone. These things are changing the way Nigerians use the internet, allowing more people than ever to connect quickly and reliably in Nigeria’s digital environment.