Elon Musk’s Starlink has made significant strides in Nigeria’s internet market, securing its position as the third-largest Internet Service Provider (ISP) by subscriber count in the fourth quarter (Q4) of 2023, according to data released by the Nigerian Communications Commission (NCC).
The latest data reveals that Starlink’s active customer base in Nigeria surged to 23,897 in Q4 2023, a substantial increase from 11,207 customers reported in Q3 2023. This represents a remarkable 113% quarter-on-quarter growth in customer numbers.
Meanwhile, Spectranet, one of Nigeria’s oldest ISPs, retained its position as the market leader with 113,869 active customers. By the end of 2023, FiberOne had 27,000 active users.
The NCC’s database indicates that 245 companies were licensed as ISPs in Nigeria by the end of 2023. However, only 106 ISPs had active customers in Q4 2023, collectively serving 262,206 active subscribers. Despite this, the number pales compared to the active internet subscriptions provided by the country’s four major mobile network operators, totalling 163.8 million by December 2023.
Starlink’s Impact and Strategy
Starlink’s entry into the Nigerian market has stirred significant interest among consumers seeking alternative service providers. Despite its comparatively higher costs, Starlink’s satellite service appeals to individuals in regions with poor internet connectivity.
The company’s rapid acquisition of customers in Nigeria within a year has outpaced many local ISPs operating for years. Starlink’s recent decision to slash the price of its router by 45% aims to attract more Nigerian customers, although the monthly subscription fee remains unchanged at N38,000.
While Starlink officially announced its presence in Nigeria in January 2023, Nigerians had pre-ordered its hardware since 2022. Initially quoting prices in dollars, the company shifted to naira upon its official launch, making its services more accessible to local consumers.
