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Home Broadband

ISPs Lose 18,000+ Customers as Nigerians Shift to Cheaper Mobile Networks

While ISPs serve fewer than 300,000 users collectively, Nigeria’s mobile network operators (MNOs), MTN, Airtel, Globacom, and 9mobile, command over 141 million active internet subscriptions

by Joan Aimuengheuwa
July 2, 2025
in Broadband
0
ISPs Lose 18,000+ Customers as Nigerians Shift to Cheaper Mobile Networks
ISPs are losing out

ISPs are losing out

UBA
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Internet Service Providers (ISPs) are losing customers as the number of subscription cancellations are increasing, due to economic hardships pushing Nigerians toward more affordable alternatives. 

New data from the Nigerian Communications Commission (NCC) shows that 38 ISPs lost over 18,000 customers between Q3 2024 and Q1 2025, revealing the high cost pressures on households and businesses.

Starlink, the second-largest ISP in Nigeria and widely considered a premium option, suffered a significant drop. Its customer base fell by over 6,000; from 65,564 to 59,509. 

Spectranet, the oldest and largest in the sector, shed 2,189 subscribers, while FibreOne, once the third-biggest ISP by user count, recorded the steepest fall, losing more than 14,000 customers.

These numbers may look small in isolation, but in the bigger market space, they reveal a shrinking space for ISPs. 

While ISPs serve fewer than 300,000 users collectively, Nigeria’s mobile network operators (MNOs), MTN, Airtel, Globacom, and 9mobile, command over 141 million active internet subscriptions. That’s more than 99.8% of the market, and the gap is widening.

Why are users walking away? One clear reason is expenses. In February, the NCC approved a 50% increase in voice and data tariffs across all operators. Starlink soon followed, raising its monthly price from ₦38,000 to ₦57,000 by April. 

In contrast, broadband plans from mobile networks remained relatively affordable, making it a no-brainer for many to switch.

Jide Awe, a technology policy expert and founder of Jidaw.com, links the decline directly to the economic challenges. He told Nairametrics that “The rising costs of data, equipment, and power supply mean many families and small businesses have to cut costs and focus strictly on essentials. Maintaining subscriptions isn’t as much of a priority for many. Starlink, in particular, is more expensive in terms of device and subscription costs.”

Beyond price, MNOs have now muscled into the fibre broadband space, once a core domain for fixed-line ISPs. MTN and Airtel, for instance, are aggressively rolling out Fibre to the Home (FTTH) services, directly competing with traditional ISPs, and with more resources and deeper infrastructure reach.

“I don’t think this is fair to the smaller operators (the ISPs),” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON). He also pointed to the tariff hike and the massive disparity in market share as additional issues.

It’s not just competition or cost. Operational realities are difficult for ISPs. Running diesel-powered infrastructure in a country with unstable power supply eats into profits. International bandwidth is so expensive, Right of Way (RoW) fees and multiple taxes in different states further drain resources. Urban areas suffer frequent cable vandalism and theft, slowing down service and customer confidence.

Of the 234 licensed ISPs in Nigeria, only 127 had any active users in Q1 2025. Many operate in survival mode, with no clear path to scale. Meanwhile, mobile networks are doing better, buoyed by reach, convenience, and price flexibility.

So what’s next for ISPs?

Awe believes the current model has run its course. “The ISPs should explore the provision of tailored services for SMEs, real estate, health, and education. With strategic planning, they can further digital transformation within sectors and across industries. In this regard, it is advisable to collaborate with agile, tech-savvy SMEs and startups to drive innovation.”

He also advises them to adopt bundled service models and reduce operating costs by investing in solar energy and local alternatives. Improving customer service, reliability, and delivering niche solutions could also help claw back market relevance.

But beyond business tweaks, many operators say the rules of the game need to change. NCC and policymakers need to create a level playing field that doesn’t leave fixed ISPs to fend for themselves against the Goliaths of the telecom industry.

Without regulatory support and an updated broadband strategy, Nigeria could end up with fewer ISPs, and even fewer real broadband choices.

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Tags: 9MobileAirtelBroadbandcustomer lossGlobacominternet marketISPsMNOsMobile Network Operators (MNOs)mobile networksMTNNCC dataNigeria internetspectranetSTARLINK
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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