Satellite
ISPs face extinction in Nigeria as MTN, Airtel, Glo dominate with satellite services
Concerns are mounting that Internet Service Providers (ISPs) in Nigeria may soon follow the path of defunct CDMA operators like Multi-Links, Starcomms, and Visafone, as major telecoms—MTN, Glo, Airtel, and T2—increasingly deploy satellite-based services, further squeezing an already struggling sector.
Industry observers warn that ISPs including Spectranet, FiberOne, Tizeti, and ipNX face an existential threat, with subscriber bases shrinking amid harsh economic conditions and fierce competition from mobile network operators.
As of Q1 2025, Nigeria had 234 licensed ISPs, but only 127 had active users—a decline from 252 licensed ISPs in Q4 2023, of which 106 were active. Between Q3 2024 and Q1 2025, 18 ISPs exited the market, shedding over 18,000 subscribers.
FiberOne recorded a 42.4% subscriber drop within six months, losing more than 14,000 users.
The downturn is attributed to high upfront hardware costs and monthly fees for fixed broadband, making mobile internet a more affordable alternative for households.
Major telecoms are accelerating the shift. Airtel Nigeria recently signed partnerships with satellite providers OneWeb and Starlink to deliver enterprise-grade connectivity in remote areas.
It also announced Nigeria’s first Direct-to-Cell partnership with Starlink, enabling connectivity in deep rural communities.
Airtel’s Chief Technology Officer, Harmanpreet Singh Dhillon, said the company is optimising spectrum holdings and building a platform combining fibre, cloud, and satellite-enabled connectivity to allow Nigerian businesses to scale regardless of location.
MTN is also advancing Low Earth Orbit (LEO) satellite technology, with its South African arm completing Africa’s first satellite phone call using a standard smartphone in collaboration with Lynk Global.
Despite the growing dominance of mobile operators, ISPs remain critical for delivering high-capacity last-mile connectivity to universities, hospitals, industrial zones, and tech hubs—where mobile data alone is insufficient.
However, stakeholders say Nigeria lacks a comprehensive policy framework to support ISPs. Agencies such as the Universal Service Provision Fund (USPF) under the NCC are constrained by limited funding and execution capacity, leaving the sector exposed amid rapid technological shifts.
