From Fibre To Space: Telecom Expansion Threatens Smaller Broadband Firms
A Shifting Telecom Landscape
NIGERIA’S Internet Service Providers are grappling with declining subscriber numbers and intensifying competition as major telecom companies roll out satellite-enabled connectivity.
Industry stakeholders caution that the trajectory mirrors the decline of former CDMA operators such as Multi-Links and Starcomms, which struggled to survive amid the rise of GSM networks.
Now, leading telecom firms — including MTN Nigeria, Globacom, Airtel Nigeria and 9mobile — are expanding beyond terrestrial fibre and towers into space-based solutions.
Economic Pressures and Subscriber Losses
According to NCC data, the number of licensed ISPs fell from 252 in late 2023 to 234 by Q1 2025. Of these, just over half have active users.
Between Q3 2024 and Q1 2025 alone, 18 operators reportedly exited the market, while tens of thousands of subscribers migrated to alternative services.
FibreOne experienced one of the sharpest contractions, losing more than 14,000 customers within six months.
Analysts cite Nigeria’s harsh economic climate, high equipment costs and currency volatility as major barriers to fixed broadband adoption. Many households now rely primarily on mobile data due to lower installation expenses and flexible subscription models.
Satellite Technology Redefining Access
Telecom operators are accelerating their adoption of satellite technologies to reach remote communities and enterprise clients.
Airtel Nigeria confirmed new collaborations with OneWeb and Starlink, alongside a Direct-to-Cell initiative designed to provide coverage in hard-to-reach regions.
MTN, meanwhile, is utilising Low Earth Orbit satellite systems to enhance connectivity across sectors such as maritime, aviation and logistics. In partnership with Lynk Global, MTN South Africa recently completed Africa’s first satellite phone call using a conventional smartphone.
Industry experts say these advancements could narrow the digital divide — but they may also consolidate market power among large operators.
The Road Ahead for ISPs
Despite mobile dominance, ISPs remain essential for last-mile fibre delivery and high-bandwidth applications in institutions and enterprise environments.
However, sector analysts argue that policy support remains inadequate. The Universal Service Provision Fund continues to face resource constraints, limiting its ability to subsidise infrastructure expansion.
As satellite connectivity becomes more mainstream, the survival of Nigeria’s ISP segment may depend on regulatory reforms, infrastructure sharing models and strategic partnerships that allow smaller providers to compete in an increasingly consolidated telecom market.
