ISPs: How rising competition spiked 9.8% subscription growth

By : Adeyemi Adepetun

Date: 3 December 2025 5:44am WAT

Share :

• 133 players battle to retain 313,713 subscribers

Amidst the shrinking number of players, active Internet service providers (ISPs) in Nigeria saw a 9.84 per cent subscription growth as of the second quarter of 2025.      The Guardian checks showed that as of last December, the total active ISP service subscriptions were 285,605. However, by the end of Q2, according to statistics by the Nigerian Communications Commission (NCC), the number appreciated by 9.84 per cent to 313,713, while the point of presence (PoP) was up to 2,568 as against 2,467 it ended 2024 with.   Despite this subscription appreciation, many of the players have become dormant. For instance, 224 ISPs were on the NCC radar as of last December, but six months later, only 133 submitted performance reports to the regulator, which consequently means that some 40 per cent might have gone dormant.   Interestingly, of these 133 active players, the ISP space is significantly dominated by Spectranet, Starlink and FibreOne, which service 65 per cent of the market segment with about 203,160 customers. The remaining 130 ISPs shared just 110,553 customers, which amounted to 35 per cent of the 313,713 subscribers.    Leaders in the space include Spectranet with 99,520 subscriptions; Starlink, 66,523; FibreOne, 37,117; iPNX, 15,636; Tizeti, Broadbased, 9942, and VDT, 5,325.   Further checks showed that the ISP space, traditionally dominated by local firms, is now defined by a fierce battle between established players, disruptive new technology, and the overwhelming market power of Mobile Network Operators (MNOs).

While the NCC has licensed numerous ISPs, official data painted a stark picture of the sector’s mortality rate. Hundreds of licensed ISPs have become “dormant players,” struggling to maintain operations. It will be recalled that 568 ISPs had gone inactive as of March 2022. The challenge has been fuelled by high bandwidth prices, right-of-way costs, spectrum scarcity, and weak corporate governance.    There is also the MNO squeeze.  The primary source of pressure comes from major MNOs (MTN, Airtel, Glo) who leverage their expansive 5G and Fibre-to-the-Home (FTTH) infrastructure to offer broader, often more affordable, Internet services under a unified license. This aggressive expansion has lured away both residential and lucrative enterprise clients, who were once the core market for ISPs. While the 133 active ISPs battled to retain 313,713 subscribers as of Q2, the MNOs confidently boasted of 140.6 million Internet subscriptions as of September 2025.   There is also the satellite disruptor. The entry of Starlink (satellite internet) has further intensified competition at the premium end of the market, quickly capturing a significant share and becoming one of Nigeria’s top-three active ISPs by subscriber count.   Describing the slight rise in subscription as a fragile optimism, telecom expert, Kehinde Aluko, stressed that the 9.8 per cent increase highlighted Nigeria’s unquenchable demand for connectivity. He, however, noted that this growth is largely beneficial to the dominant MNOs and the top-tier ISPs.    Aluko warned that if the trend of consolidation continues without targeted policy intervention, the market risks becoming an imbalanced duopoly. He said this could compromise the national goal of achieving universal broadband access, as indigenous, smaller ISPs are often best positioned to serve remote and underserved communities.     “The decline in the number of active ISPs means less choice and less specialised service for the Nigerian user. While the overall subscriber number rises, the competition that truly drives innovation at the grass-roots level is being stifled by the scale of the MNOs,” he stated.    According to him, the future of the Nigerian ISP space hinges on the regulator’s ability to create a level playing field where competition can thrive, allowing the smaller, dormant players a viable path to re-entry and expansion.

Speaking with The Guardian, the Executive Director, Business Development, Broadbased Communications Ltd, Chidi Ibisi, hinged the subscription growth on the deployment of fibre to the home, but smaller ISPs are still constrained because of lack of capital.

Ibisi said the sector is still challenged by high interest rates (high cost of capital) , saying there is no issue with demand. He said the cost of deploying fibre is very high coupled with expensive RoW cost, rise in vandalism, stressing that operators are constantly repairing cables that have been cut, either by road construction companies or vandals. He said the cost of entry is high, so also cost of operations and maintenance.

According to him, Project Bridge is coming to shape many things in the sector and give access to, especially small ISPs.

“What that does is that we have capital coming in to take care of some of the issues affecting us. Running long haul fibre, whether intercity fibre or within the City is expensive. Long haul issue is one; there are fibre cuts, high cost of capital, among others. So, with the 90,000km Nationwide Fiber Network called Project Bridge, we have fibre going into every local government area, including wards, so, smaller ISPs can connect from Points of Presence at ward level and run Fiber cables to housing estates, among others. This means the capital outlay required will be lower.”

Speaking on Broadbased Communications strategies of keeping afloat, the ED said they have been around for some time and have deployed over 4,600km of cable with decent customer base with presence in all the banks, Data Centers, submarine cable landing stations, epayment switching companies, among others, “but the high cost of capital remains an issue.”

He said the 90,000Km Nationwide Fiber Optic Network called Project Bridge is a welcome development and the funding pledged by Development Finance Institutions will help to derisk the project, saying that the Federal Government through the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, has affirmed that the project will help small players to play a key role in the provision of affordable broadband Telecom services in every Ward and Local Government Area in Nigeria.

“We want low-cost Intervention Funds for the sector because of the strategic position of the telecom sector, which underpins all other sectors, meaning a shutdown can affect the entire economy. We commend the FG for Project Bridge and providing the opportunity to Small Service Providers to acquire Equity in the Project Bridge SPV,” he stated.

He also commended the Presidential Fiscal Policy and Tax Reforms Committee led by Prof Taiwo Oyedele, stressing that there are plans to reduce the number of multiple taxation faced by the sector, saying this will help small operators greatly.

Tags: