Starlink’s Nationwide Expansion Threatens Survival Of Local ISPs

MONTHS after temporarily suspending sign-ups in select Nigerian cities, Starlink has announced full nationwide availability of its satellite internet service — a move that has unsettled many local Internet Service Providers (ISPs) struggling to stay afloat.
Since restoring sign-ups in Lagos and Abuja, two of its biggest markets, Starlink’s growing dominance has sparked fresh fears among domestic ISPs, many of whom now view the company as an existential threat capable of rendering their services obsolete.
Starlink Reshaping Nigeria’s Internet Market
Within just a few years of entering Nigeria, Starlink, owned by SpaceX, has redefined internet access with faster speeds, broader coverage, and stronger service support. Analysts say the company’s aggressive expansion and competitive pricing could trigger a price war that may reshape the entire broadband industry.
Local ISPs, having invested heavily in fiber and terrestrial network infrastructure, fear their investments could be at risk.
Muyiwa Ogungboye, CEO of eStream Network, warned that Starlink’s rise poses a major threat to local operators.
“As a local ISP, the advent of Starlink makes us question if the regulator is protecting the investments made by players in this industry,” he said. “Millions of naira have been spent on infrastructure, even in underserved areas.”
Similarly, Azeez Amida, CEO of Pan African Towers, noted that while Starlink’s growth is both a threat and an opportunity, the increasing rollout of 5G networks in Nigeria could also shape competition in unexpected ways.
Dominance Backed by Space Power
With more than 5,000 satellites in orbit, Starlink leads the world in space-based broadband connectivity. In Nigeria, it is projected to capture over 60% of the ISP market within two years, according to industry estimates.
The Nigerian Communications Commission (NCC) reported that Starlink overtook FiberOne Broadband to become the second-largest ISP in the country as of March 2025, with its subscriber base more than doubling from 23,897 in 2023 to 65,564 in 2024.
Unlike terrestrial ISPs such as Spectranet, Tizeti, ipNX, and Broadbased Communications, Starlink’s low-Earth orbit satellite network offers speeds up to 250 Mbps, making it especially appealing to users in underserved and rural areas.
Expansion Drive and Retail Partnership
Following network upgrades earlier in the year, Starlink resumed operations across major cities, including Kano, Port Harcourt, Warri, Asaba, Uyo, Ibadan, Enugu, Onitsha, and Owerri.
Its retail partner in Nigeria, Konga, announced free nationwide delivery for all Starlink kits ordered online or purchased in physical outlets.
According to Starlink, the earlier suspension of new sign-ups was due to infrastructure limitations amid soaring demand across urban centres.
Global Rollout and Technical Constraints
Starlink’s renewed rollout is not limited to Nigeria. The service has also expanded in Kenya, Zambia, Zimbabwe, and Ghana, as part of SpaceX’s broader African expansion strategy.
However, one key limitation persists — each Starlink cell currently supports only about 1,500 users within a 22-kilometre radius, a challenge in Africa’s densely populated cities.
Despite this, Starlink’s offering of reliable, high-speed internet in regions underserved by traditional infrastructure makes it a compelling option.
A Market Disruption in Motion
Analysts warn that if Starlink’s growth trajectory continues, it could soon dominate Nigeria’s ISP market, potentially pushing many smaller operators out — much like how GSM technology displaced CDMA networks in the early 2000s.
With its combination of speed, reliability, and ease of access, Starlink’s influence could mark the beginning of a new era in Nigeria’s internet landscape — one where satellite connectivity outpaces traditional broadband systems.
