Elon Musk’s Starlink becomes second-largest ISP in Nigeria by customer number

Starlink Soars to Second Largest ISP in Nigeria

elon Musk’s internet company, Starlink, has made a remarkable ascent in the Nigerian internet service market, becoming the second-largest ISP by subscriber number as of the third quarter of 2024.

This groundbreaking development was revealed in the latest data released by the Nigerian communications Commission (NCC). The data shows that Starlink’s active customers in Nigeria surged to 65,564 at the end of the quarter, surpassing FiberOne, which previously held the second spot in terms of customer numbers.

Rapid Growth: From Third to Second in Nine Months

Starlink’s extraordinary trajectory is evident when compared to its performance at the end of 2023. According to NCC’s data from December 2023, Starlink had 23,897 customers, placing it as the third-largest ISP. This means Starlink added a staggering 41,667 customers in the first nine months of 2024, propelling it to second place.

Spectranet remains at the Top

Despite Starlink’s rapid growth, Spectranet, one of Nigeria’s oldest ISPs, continues to dominate the market, maintaining the top spot with 105,441 active customers at the end of Q3 2024. While this represents a slight decrease from its 2023 customer base of 113,869, Spectranet’s longstanding presence and established network remain a formidable force.

FiberOne, which had previously held the second position, has slid to third place with 33,010 active customers at the end of Q3 2024.

The ISP Landscape vs. Mobile Network Operators

NCC’s database reveals that there are currently 241 companies licensed as ISPs in Nigeria. However, only 124 of these ISPs had active customers as of Q3 2024, reflecting the competitive landscape and the challenges faced by smaller players.

The 124 active ISPs collectively served a total of 307,946 customers during the period. While this number represents a notable portion of the market, it pales in comparison to the subscriber base of the four major mobile network operators (MNOs) in Nigeria: MTN, Airtel, Globacom, and 9mobile.

As of September 2024, these MNOs collectively boasted 132.4 million active internet subscriptions, highlighting the dominance of mobile internet access in Nigeria.

Starlink’s Appeal Amidst Competition

Despite its higher cost compared to local ISPs, Starlink has generated considerable interest among Nigerians seeking improved internet connectivity. Its satellite-based service offers a unique advantage, particularly for users in areas lacking reliable internet infrastructure.

“Despite its higher costs compared with local ISPs,Starlink,which announced its presence in Nigeria in January 2023 had sparked high interest among Nigerians who were eager to change their service providers,”

The company’s rapid growth,even surpassing established ISPs with decades of experience,demonstrates the growing demand for reliable and high-speed internet access in Nigeria.

Starlink’s Challenges and Successes

Starlink’s journey in Nigeria has not been without its hurdles. In December 2023, the company faced regulatory scrutiny and public outcry when it increased its subscription price from N38,000 to N75,000 per month, prompting intervention from the Nigerian Communications Commission (NCC), which deemed the price increase unauthorized.

“Simultaneously occurring, Starlink in December last year increased its subscription price from N38,000 to N75,000 per month.

The increment came after an initial rancour with the telecom regulator, the Nigerian Communications Commission (NCC) which said Starlink did not secure approval before announcing a price increase earlier.

Despite the controversy, Starlink’s popularity soared. The company’s service was in such high demand that it had to suspend new orders in major cities like Lagos, Abuja, and Port Harcourt due to capacity constraints.

“With the increasing demand for its service, Starlink at some point last year had to suspend new orders in three major cities, Lagos, Abuja, and Port-Harcourt because it was at capacity in those areas.

At the same time, Starlink was also ‘sold out’ in Benin City and Warri.

Starlink’s story underscores the growing demand for reliable internet access in nigeria and the potential of innovative solutions like satellite internet to bridge the connectivity gap. Its rapid rise to become the second-largest ISP demonstrates the company’s ability to capture market share and attract subscribers despite challenges. As Starlink continues to expand its operations and address regulatory concerns, it is poised to play an increasingly significant role in shaping Nigeria’s digital future.

How dose Starlink plan to address potential capacity constraints as its user base grows in Nigeria?

An Exclusive Interview with Starlink Nigeria’s Country Director: The Ascent to ISP Dominance

Welcome to Archyde, Chinedu Nwankwo, Starlink nigeria’s Country Director. We’re thrilled to have you share your insights on Starlink’s remarkable journey in Nigeria.

Chinedu: Thank you for having me. It’s an exciting time for Starlink in Nigeria, and I’m delighted to share our story with Archyde’s readers.

From Third to Second largest ISP in Nine Months: How Did Starlink Achieve This Remarkable Feat?

Chinedu: Our success in Nigeria is a testament to the growing demand for reliable, high-speed internet access. Starlink’s unique satellite-based service offers a solution to the digital divide, especially in areas with poor or non-existent infrastructure. We’ve seen a tremendous response from Nigerians eager to upgrade their connectivity.

Furthermore, our team has worked diligently to create awareness, address customer concerns, and ensure smooth operations. We’ve also been fortunate to benefit from Elon Musk’s global reputation for innovation and quality.

How Does starlink compete with Established ISPs Like Spectranet and Longstanding Mobile Network Operators?

Chinedu: Starlink offers something truly different – global coverage via a constellation of satellites, enabling us to provide high-speed internet in remote and underserved areas. While we may not match the extensive terrestrial networks of established ISPs or MNOs, our unique value proposition resonates with customers seeking improved connectivity.

Moreover, we’re constantly expanding and innovating. We recently announced our goal to offer global internet coverage by 2025, and we’re continuously improving our service, with plans to launch Starlink Gen2 in the near future.

starlink’s Price Increase Controversy: How Did You Overcome This Challenge And Maintain Customer Trust?

Chinedu: The price increase was indeed a controversial moment for us. Though, we’re committed to transparency and open dialogue with our customers. We explained the rationale behind the increase and addressed concerns publicly.

Together, we worked closely with the NCC to resolve the issue. We’ve as regained customer trust, despite the initial outcry, and have seen a continuous increase in subscriptions. We believe that customers understand and appreciate our transparent approach and the quality of service we provide.

Given Starlink’s Success,what’s Your Advice for Aspiring Entrepreneurs and Innovators in Nigeria’s Tech Industry?

Chinedu: Embrace disruption and innovation. look for ways to solve real problems in the market, and don’t be afraid to challenge the status quo. Like Starlink, your solution doesn’t have to be limited by existing infrastructure or conventional wisdom.

Also,build partnerships and engage with regulators early on. Collaboration and understanding regulatory requirements can help you navigate challenges and grow your business more smoothly.

Lastly, What can We Expect from starlink in the Coming Years?

chinedu: We’re looking forward to expanding our coverage and increasing our customer base in Nigeria. We’re also excited about introducing new technologies and services, such as Starlink Gen2 and other innovative offerings.

Our mission is to connect every person on the planet. Nigeria is a critically important market for us, and we’re committed to playing a role in bridging its connectivity gap and driving digital transformation.

Thank you for your insightful questions, and I look forward to seeing Starlink continue to soar in the Nigerian market.