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Elon Musk’s internet venture, Starlink, has rapidly ascended to become Nigeria’s second-largest Internet Service Provider (ISP) by subscriber count as of the third quarter of 2024. This significant development was highlighted in the latest data released by the Nigerian Communications Commission (NCC).

According to the NCC’s report, Starlink’s active customer base in Nigeria surged to 65,564 by the end of Q3 2024, surpassing FiberOne, which previously held the second position in terms of subscriber numbers. In December 2023, Starlink had reported only 23,897 customers, ranking it as the third-largest ISP at that time. The latest figures indicate that Starlink added an impressive 41,667 new subscribers within the first nine months of the year.

In contrast, Spectranet, one of Nigeria’s oldest ISPs, continues to lead the market with 105,441 active customers as of the end of Q3 2024. However, this figure reflects a decline of over 8,000 customers from its customer base of 113,869 at the end of 2023. FiberOne, which once occupied the second-largest position, has now fallen to a distant third with only 33,010 active customers as of the same period.

The NCC’s database reveals that there are currently 241 companies licensed as ISPs in Nigeria. However, only 124 of these ISPs reported having active customers as of Q3 2024. Collectively, these 124 ISPs had a total of 307,946 active customers during the review period. This number, while notable, remains significantly lower compared to the internet subscriptions held by the four major mobile network operators (MNOs) in the country. As of September 2024, MTN, Airtel, Globacom, and 9mobile collectively boasted 132.4 million active internet subscriptions.

Starlink’s entry into the Nigerian market, which began in January 2023, has generated considerable interest among consumers, despite its higher subscription costs compared to local ISPs. The appeal of Starlink’s satellite service is particularly strong in regions with poor internet connectivity, prompting many Nigerians to consider switching their service providers.

Remarkably, local ISPs that have been operating in Nigeria for several years are now struggling to match the customer numbers that Starlink has achieved in less than two years of operation. In December 2023, Starlink raised its subscription price from N38,000 to N75,000 per month, following a dispute with the NCC regarding the lack of prior approval for the price increase.

The demand for Starlink’s services has been so high that, at one point last year, the company had to suspend new orders in major cities such as Lagos, Abuja, and Port Harcourt due to reaching capacity in those areas. Additionally, Starlink was reported to be “sold out” in other locations, including Benin City and Warri, highlighting the rapid growth and popularity of its internet services in Nigeria.

Starlink terminals sold out in major Nigerian cities amid high demand and regulatory challenges

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