Starlink Becomes Nigeria’s Second-Largest ISP as Subscriber Growth Increase

Elon Musk’s satellite internet service, Starlink, has rapidly climbed the ranks to become Nigeria’s second-largest Internet Service Provider (ISP) by subscriber count as of the third quarter of 2024. This milestone was revealed in the latest data from the Nigerian Communications Commission (NCC).

According to the NCC’s report, Starlink’s active customer base in Nigeria reached 65,564 by the end of Q3 2024, surpassing FiberOne, which previously held the second spot. At the end of 2023, Starlink had 23,897 customers, ranking third among ISPs. The latest figures show an impressive gain of 41,667 new subscribers in just nine months.

Meanwhile, Spectranet, one of Nigeria’s longest-standing ISPs, remains the market leader with 105,441 active subscribers as of Q3 2024. However, this marks a decline of over 8,000 customers from its 113,869-user base at the end of 2023. FiberOne, now in third place, reported 33,010 active customers during the same period.

The NCC’s database indicates that Nigeria has 241 licensed ISPs, but only 124 of them reported active customers in Q3 2024. Combined, these ISPs served a total of 307,946 active users, a figure that remains significantly lower than the internet subscriptions held by the country’s four major mobile network operators (MNOs). As of September 2024, MTN, Airtel, Globacom, and 9mobile collectively accounted for 132.4 million active internet subscriptions.

Since launching in Nigeria in January 2023, Starlink has drawn significant consumer interest, particularly in areas with limited connectivity options. Despite its higher subscription costs compared to local ISPs, many Nigerians have opted for its satellite-based service due to its reliability and speed.

Notably, longstanding local ISPs are struggling to compete with Starlink’s rapid rise, which has taken less than two years to achieve its current market position. In December 2023, Starlink raised its monthly subscription price from N38,000 to N75,000, following a dispute with the NCC over the lack of prior approval for the price adjustment.

The demand for Starlink’s service has been so high that, at one point last year, the company had to suspend new orders in major cities like Lagos, Abuja, and Port Harcourt due to capacity constraints. Additionally, Starlink was reported to be “sold out” in locations such as Benin City and Warri, underscoring the strong demand for its internet services in Nigeria.