Starlink Surpasses FiberOne to Become Nigeria’s Second-Largest Internet Provider

In a significant development within Nigeria’s internet set up, Starlink Internet Services Nigeria Ltd. has overtaken FiberOne Broadband Ltd., securing its position as the country’s second-largest Internet Service Provider (ISP). As of the third quarter of 2024, Starlink’s subscriber base reached 65,564, according to data from the Nigerian Communications Commission (NCC).

Launched in Nigeria in January 2023, Starlink—a subsidiary of SpaceX—has experienced remarkable growth. Starting with 11,207 subscribers in the third quarter of 2023, the company expanded to 23,897 by the end of that year. In the first nine months of 2024 alone, Starlink added an impressive 41,667 users, surpassing FiberOne and positioning itself just behind the market leader, Spectranet, which maintains 105,441 subscribers.

Despite the presence of 124 licensed ISPs in Nigeria serving a total of 307,946 subscribers, the majority of the country’s internet users—approximately 132.4 million—rely on mobile operators such as MTN, Airtel, Globacom, and 9mobile. Starlink’s rapid ascent in less than two years highlights its competitive edge in a market where many local ISPs have operated for decades.

Why Starlink Stands Out

Starlink differentiates itself through several key features:

• High-Speed Connectivity: Offering download speeds between 100–200 Mbps, Starlink significantly outperforms the 10–50 Mbps speeds typical of fixed wireless access (FWA) and wireless-to-the-x (WTTx) networks.
• Broad Coverage: Utilizing satellite technology, Starlink reaches remote and underserved regions where traditional fixed networks face challenges, effectively bypassing infrastructure limitations associated with fiber-optic systems.
• User-Friendly Installation: With a straightforward plug-and-play setup, Starlink enables users to self-install, contrasting with the often complex installations required by conventional services.

Challenges on the Horizon

Despite its successes, Starlink encounters certain obstacles:

• Pricing Adjustments: In December 2024, the company increased its monthly subscription fee from ₦38,000 to ₦75,000, leading to regulatory disputes with the NCC over the unapproved price hike.
• Capacity Constraints: High demand prompted Starlink to halt new orders in major cities like Lagos, Abuja, and Port Harcourt in 2023. By October 2024, equipment shortages extended to Benin City and Warri, indicating supply limitations.
• Latency Issues: Users report latency ranging from 100–200 milliseconds, attributed to the distance of ground stations or points of presence (PoPs), affecting real-time online activities.

As Starlink continues to expand its footprint in Nigeria, addressing these challenges will be crucial to sustaining its growth and meeting the connectivity needs of its burgeoning subscriber base.