Likely End Of Business For Internet Service Providers As Telcos Consider Space-Based Network
Likely End Of Business For Internet Service Providers
OpenLife Nigeria reports that as Internet Service Providers (ISP) in Nigeria continue to face troubling trend, there are concerns that they may soon become irrelevant like the defunct Code Division Multiple Access (CDMA) oper¬ators- Multi-Links, Starcomms, Reltel, Visafone, among others, as leading telecom operators–MTN, Glo, Airtel and T2 (formerly 9mobile)– are now deploying some of their services through satellites.
The development, according to industry observers, will further cause a major setback for ISPs such as Spectranet, FiberOne, Tizeti, and ipNX that are already struggling for survival in the communi¬cation industry in the country.
In recent times, there has been significant subscriber decline among the service providers who have also been bat¬tling the harsh economic environment.
According to reports, as of Q1 2025, Nigeria had 234 licensed ISPs, with only 127 having active users. This represents a decline from 252 licensed ISPs in Q4 2023, of which only 106 were active. This trend indicates a growing struggle for smaller, local providers to com¬pete with larger telecommunica-tions companies and absorb the rising operational costs.
In the same vein, 18 compa¬nies on the ISP telecom segment reportedly exited the market be¬tween Q3 2024 and Q1 2025 with over 18,000 subscribers dumping their respective service providers. Last year, one of the leading operators, FibreOne, recorded a 42.4% drop in subscribers, los¬ing over 14,000 users within six months.
According to data released by the Nigerian Communications Commission (NCC), FibreOne’s subscriber base fell from 33,010 to just over 19,000 between Q3 2024 and Q1 2025. The reasons for the dwindling fortune of the ISPs are not far-fetched as the tough economic conditions in the country continue to take a toll on Nigerians.
For economic survival, many households now prefer to make mobile internet the go-to choice as ISP services operating on fixed broadband generally require higher upfront hardware costs and ongoing monthly fees, which can be a barrier to users in less urban areas.
Only last week, Airtel Nigeria disclosed that it is going beyond terrestrial infrastructure, noting that the network is extending connectivity through space-based solutions.
Telcos
The company said it has established and signed partner¬ships with satellite providers OneWeb and Starlink, enabling enterprise-grade connectivity for businesses in remote locations, hard to reach areas and opera¬tional outposts.
Recently, Airtel announced Nigeria’s first Direct-to-Cell part¬nership with Starlink, a break¬through that will allow customers to remain connected while travel¬ling through deep remote areas and enable small rural commu¬nities to access Airtel’s digital and fintech services.
Speaking on the development, the Chief Technology Officer at Airtel Nigeria, Harmanpreet Singh Dhillon, stressed that spectrum depth and optimisation re-main critical to network quality.
“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.
NCC
“Quality of service today is about resilience, redundancy and intelligence, and that is what Airtel is delivering. From fibre to cloud to satellite-enabled connec¬tivity, we are building a platform that allows Nigerian businesses to scale with confidence, regard-less of location.” he said.
MTN is not left out of the service revolution as it is also leveraging these advancements through LEO (Low Earth Orbit) satellite technology.
LEO networks orbit closer to Earth, enabling near real-time data transfer and reliability that rivals terrestrial broadband. This innovation is transforming in¬dustries like maritime, logistics, and aviation, delivering real-time tracking, operational efficiency, and enhanced safety – even in the most remote locations.
In a groundbreaking trial, MTN South Africa, in collaboration with American satellite provider Lynk Global, completed Africa’s first satellite phone call using a standard smartphone.
Even though the mobile networks undoubtedly dominate the current telecom landscape, ISPs still play a vital communication role in Nigeria’s future digital infrastructure, as they are nec¬essary for delivering stable, high-capacity last-mile connectivity- essential for universities, hospitals, industrial zones, and tech centres—where mobile data alone is insufficient.
However, beyond the increas¬ing dominance of traditional tele¬com operators- MTN, Glo, Airtel and T2 (formerly 9mobile), Nigeria lacks a comprehensive policy framework that assists ISPs in de¬livering these essential services.
Agencies like the Universal Service Provision Fund (USPF) under the NCC are struggling to meet the increasing demand due to limited funding and execution capacity.