Starlink, the internet service company founded by Elon Musk, has swiftly risen to prominence in Nigeria’s internet service provider (ISP) market, becoming the third-largest ISP by subscriber numbers in the fourth quarter (Q4) of 2023.
This notable achievement was disclosed in the latest data released by the Nigerian Communications Commission (NCC).
According to the NCC’s report, Starlink’s active customer base in Nigeria surged to 23,897 in Q4 2023, marking a significant growth from 11,207 customers in Q3 2023.
This 113% quarter-on-quarter increase underscores the rapid adoption of Starlink’s services within the country.
Despite being a relatively new entrant, Starlink has managed to outperform many long-established ISPs.
Spectranet, one of the oldest ISPs in Nigeria, maintained its lead with 113,869 active customers, followed by FiberOne with 27,000 active users by the end of 2023.
The NCC’s database revealed that there were 245 companies licensed as ISPs in Nigeria by the end of 2023.
However, only 106 of these ISPs had active customers, collectively accounting for 262,206 active customers during the review period.
This figure remains modest compared to the 163.8 million active internet subscriptions held by the country’s four major mobile network operators: MTN, Airtel, Globacom, and 9mobile.
The surge in Starlink’s customer base is particularly noteworthy given its higher costs relative to local ISPs.
Despite this, the service has attracted substantial interest among Nigerians, especially in regions with poor internet connectivity.
Starlink’s satellite-based service offers a ubiquitous internet solution, which has been a significant draw for users in underserved areas.
In a strategic move to attract more customers, Starlink announced a 45% price reduction on its internet router in May.
The price of the Starlink router, previously sold at N800,000, was slashed to N440,000 in April 2024. However, the monthly subscription fee remains at N38,000.
Starlink’s journey in Nigeria began in earnest with its official announcement in January 2023, though many Nigerians had been pre-ordering its hardware since 2022.
Initially, the prices were quoted in dollars at $600 for the hardware and $43 for the subscription. Following its official launch, Starlink transitioned to pricing in naira.
