As Internet Service Providers in Nigeria continue to face mounting challenges, concerns are growing within the industry that they may follow the path of the defunct Code Division Multiple Access operators such as Multi-Links, Starcomms, Reltel and Visafone, as leading telecommunications companies increasingly deploy services via satellite technology.
Industry observers note that this development could further weaken ISPs including Spectranet, FiberOne, Tizeti and ipNX, many of which are already grappling with declining subscriber numbers and a challenging operating environment.
Recent figures indicate a steady drop in active providers and subscribers. As of Q1 2025, Nigeria had 234 licensed ISPs, with only 127 recording active users. This marks a shift from Q4 2023, when 252 ISPs were licensed but only 106 were active. The pattern reflects the increasing difficulty smaller, local operators face in competing with larger telecommunications firms and absorbing rising operational costs.
Between Q3 2024 and Q1 2025, 18 companies reportedly exited the ISP segment, with more than 18,000 subscribers abandoning their respective providers. In the same period, one of the leading operators, FiberOne, recorded a 42.4 percent decline in subscribers, losing over 14,000 users within six months.
Data released by the Nigerian Communications Commission showed that FiberOne’s subscriber base fell from 33,010 to just over 19,000 between Q3 2024 and Q1 2025.
Economic pressures have contributed significantly to the downturn. With worsening economic conditions, many households are turning to mobile internet as their primary connectivity option. Fixed broadband services offered by ISPs typically require higher upfront hardware investments and recurring monthly charges, posing affordability challenges, particularly in less urban areas.
Major telecom operators are simultaneously expanding beyond traditional terrestrial infrastructure. Airtel Nigeria recently disclosed that it is extending connectivity through space-based solutions. The company has established partnerships with satellite providers OneWeb and Starlink to deliver enterprise-grade connectivity to businesses in remote and hard-to-reach locations, as well as operational outposts.
Airtel also announced Nigeria’s first Direct-to-Cell partnership with Starlink, enabling customers to remain connected while travelling through deep remote areas and allowing small rural communities access to its digital and fintech services.
Speaking on the development, the Chief Technology Officer at Airtel Nigeria, Harmanpreet Singh Dhillon, said, “We have increased our 4G spectrum by 10MHz and we are actively optimising our holdings. These actions allow us to support higher data throughput, better speeds and more consistent service, especially in high-traffic areas.
“Quality of service today is about resilience, redundancy and intelligence, and that is what Airtel is delivering. From fibre to cloud to satellite-enabled connectivity, we are building a platform that allows Nigerian businesses to scale with confidence, regardless of location.”
MTN is also leveraging advancements through Low Earth Orbit satellite technology. LEO networks orbit closer to Earth, enabling near real-time data transfer and reliability comparable to terrestrial broadband. The technology is transforming sectors such as maritime, logistics and aviation by enabling real-time tracking, operational efficiency and enhanced safety, including in remote environments.
In a recent trial, MTN South Africa, in collaboration with American satellite provider Lynk Global, completed Africa’s first satellite phone call using a standard smartphone.
Despite the dominance of mobile network operators in Nigeria’s telecom landscape, ISPs remain critical to the country’s digital infrastructure. They provide stable, high-capacity last-mile connectivity required by universities, hospitals, industrial zones and technology hubs, where mobile broadband alone may not meet demand.
Beyond the growing strength of traditional telecom operators such as Globacom and 9mobile, which now operates as T2, the country lacks a comprehensive policy framework to support ISPs in delivering essential services.
Agencies including the Universal Service Provision Fund, under the Nigerian Communications Commission, are struggling to address increasing connectivity demands due to limited funding and execution capacity.
