Nigerians cut spending as Starlink, Spectranet, other ISPs suffer sharp drop in subscribers

Leading Internet Service Providers (ISPs) in Nigeria, including Starlink, Spectranet, and FibreOne, are facing a steep drop in subscriber numbers as more Nigerians scale back on internet spending amid worsening economic pressures.

According to newly released data by the Nigerian Communications Commission (NCC), total active subscribers across 127 licensed ISPs fell to 289,369 in Q1 2025, down from 307,946 in Q3 2024—a loss of over 18,000 users.

This marks a troubling trend for the ISP segment of Nigeria’s telecoms market, which continues to trail far behind mobile network operators in both market share and resilience.

Starlink, which had seen a meteoric rise since its entry into the Nigerian market, experienced its first customer loss during the review period. Its active subscribers dropped from 65,564 in Q3 2024 to 59,509 in Q1 2025, shedding over 6,000 users.

Similarly, Spectranet, Nigeria’s oldest and largest ISP by subscriber base, also saw a dip, with its customer count falling from 105,441 to 103,252, a loss of 2,189 users.

However, FibreOne, the third-largest ISP, recorded the most significant drop, losing over 14,000 subscribers—from 33,010 in Q3 2024 to just 19,000 in Q1 2025.

Industry experts attribute the decline to Nigeria’s harsh economic realities, which have significantly eroded consumer purchasing power.

According to Jide Awe, Innovation and Technology Policy Advisor and Founder of Jidaw.com, rising costs of data, equipment, and electricity are pushing both families and small businesses to reduce spending.

“Many households and SMEs now prioritize essentials, and internet subscriptions—especially from ISPs with higher costs—are often the first to go. Starlink, for example, remains one of the most expensive options in terms of hardware and monthly fees,” he said.

With the NCC’s approval, telecom operators implemented a 50% increase in data and voice tariffs in February 2025.

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While mobile network operators (MNOs) absorbed some of the impact, Starlink raised its monthly subscription from N38,000 to N57,000 in April, pushing many subscribers to reconsider.

One such user, Kelvin Ayodele, a small business owner in Lagos, said he canceled his Starlink subscription two months ago in favor of a mobile broadband service.

“It’s more affordable and delivers the same value I was getting. I had to cut costs,” he said.

The shift is also influenced by MNOs expanding into Fiber-to-the-Home (FTTH)—a domain traditionally dominated by core ISPs.

READ ALSO: Starlink announces price hike in Nigeria amid regulatory uncertainty

Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), warned that MNOs’ foray into FTTH could further marginalize ISPs.

“It’s an uneven playing field. ISPs are now competing with giants who already dominate the mobile market. This is clearly impacting subscriber loyalty and market dynamics,” he noted.

Despite the challenges facing ISPs, mobile internet subscriptions remain strong, with the four major operators—MTN, Airtel, Glo, and 9mobile—recording 142 million active connections as of March 2025. In comparison, the total ISP market barely accounts for 0.2% of internet users in Nigeria.

With the current climate, experts like Awe believe that ISPs must evolve or risk obsolescence.

“They need flexible data plans, bundled services, and tailored packages for SMEs, real estate, health, and education sectors,” he advised.

“Improving service quality, collaborating with tech-savvy startups, and investing in renewable energy like solar can significantly enhance customer retention and operational efficiency.”

The NCC’s database shows 234 licensed ISPs, but only 127 had active customers in Q1 2025, highlighting the market’s fragility.