SpaceX’s Starlink has made remarkable progress in Nigeria, securing its position as the country’s second-largest internet service provider (ISP). This achievement was confirmed by the Nigerian Communications Commission (NCC), revealing that Starlink surpassed FiberOne Broadband Limited in Q4 2024.
Starlink’s user base soared from 23,897 subscribers in 2023 to 65,564 by the end of 2024, highlighting the demand for its high-speed connectivity, which boasts speeds of up to 250 Mbps—significantly higher than what most local ISPs can deliver.
Despite this, Spectranet remains the market leader, although its subscriber base dropped from 113,869 at the end of 2023 to 105,441 in Q3 2024, losing 8,428 users. This figure remained the same in Q4 2024. Unlike Starlink, Spectranet relies on fiber and terrestrial wireless networks, which are burdened by costly right-of-way fees, tower installations, and power infrastructure.
Regulatory and Pricing Roadblocks
Starlink’s growth has not been without challenges. In December 2024, the company announced plans to increase its standard residential service fee from ₦38,000 to ₦75,000 per month. While this adjustment took effect for new customers, existing users were given until January 27, 2025, to transition to the new rate. However, following a surge in demand, Starlink decided to put the price hike on hold.
This isn’t the first time Starlink has faced pricing issues in Nigeria. In October 2024, the NCC blocked a previous attempt to raise tariffs, citing improper regulatory procedures. Approval eventually came on February 4, 2024, permitting telecom operators to adjust their prices. While companies like MTN Nigeria, Airtel Nigeria, and Smile Communications have implemented price hikes, Starlink has yet to follow suit.
Future Prospects and Technological Expansion
The rapid expansion of Starlink’s satellite network continues, with 8,039 satellites launched as of February 2025, out of which 7,082 are still in orbit and 7,049 operational. The company’s ambition to improve speeds, reduce latency, and enhance service reliability has made it an appealing choice for users frustrated by the poor internet quality offered by local providers.
“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 fibre or terrestrial wireless solutions.”
Despite its impressive growth, Starlink is not without limitations. Subscribers can only use the service at fixed locations, making it inconvenient for mobile users. While Starlink began rolling out satellite-to-phone connectivity in 2024 to eliminate mobile dead zones, this service is yet to reach Africa.
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One reply on “Starlink’s Rapid Growth in Nigeria Faces Pricing Challenges”
[…] October 2024, Nigerian customers eager to access Starlink’s satellite internet service have found themselves locked out from purchasing kits directly from the SpaceX-owned company. The […]