Starlink, the satellite internet service operated by SpaceX, has become Nigeria's second-largest internet service provider (ISP), overtaking FiberOne Broadband Limited in Q4 2024, according to data from the Nigerian Communications Commission (NCC). This remarkable growth is attributed to the increasing demand for high-speed connectivity, which Starlink delivers at speeds of up to 250 Mbps, far exceeding what most local ISPs offer.

Despite its premium pricing, Starlink's user base more than doubled within a year, surging from 23,897 subscribers in 2023 to 65,564 by the end of 2024. This rapid growth reflects the increasing demand for reliable internet access, which has been a major challenge for many Nigerians. The country's internet landscape has been plagued by persistent poor internet quality offered by mobile network operators and ISPs, making Starlink's high-speed connectivity a welcome relief.

Spectranet, the market leader, saw a decline in subscribers, with its user base decreasing from 113,869 at the end of 2023 to 105,441 in Q3 2024, a loss of 8,428 users, according to NCC data. This number remained unchanged in Q4. Unlike Starlink, which operates via satellite, Spectranet depends on fiber and terrestrial wireless networks, which require expensive right-of-way fees, tower installations, and power infrastructure.

Ladi Okuneye, CEO of UniCloud, an ISP, attributed Starlink's growth to the ubiquitous nature of satellite technology, which allows for connectivity without geographical limitations. "As far as them being the second-largest ISP now, it makes sense," Okuneye said. "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 fiber or terrestrial wireless solutions."

In December 2024, Starlink announced an increase in its monthly subscription fees in Nigeria, doubling the cost of its standard residential service from ₦38,000 to ₦75,000 per month. The hike affected new customers, while existing users were set to transition to the new rate on January 27, 2025. However, as demand surged, Starlink put the tariff adjustment on hold.

This wasn't the first time Starlink faced pricing challenges in Nigeria. In October 2024, the Nigerian Communications Commission (NCC) blocked a previous attempt to raise tariffs, saying the company had not followed the proper regulatory procedures. The NCC later approved the hike on February 4, 2024, allowing telecom operators to adjust their prices. However, while operators such as MTN Nigeria, Airtel Nigeria, and Smile Communications have increased their prices, Starlink has yet to implement the increase.

Despite its rapid growth, Starlink faces limitations. Currently, subscribers can only use the service in a fixed location, making it difficult for mobile users to stay connected on the move. In 2024, Starlink began rolling out satellite-to-phone connectivity to eliminate mobile dead zones, but this service has not yet reached Africa.

As demand for reliable internet access grows, Starlink's expanding presence in Nigeria signals a shift in the country's broadband landscape. However, regulatory hurdles, pricing concerns, and mobile connectivity challenges remain key factors in its long-term success. Despite these challenges, Starlink's growth is a testament to the increasing demand for high-speed connectivity and the potential for satellite technology to bridge the digital divide in Nigeria.