Shrinking Fixed Broadband Market in Nigeria: 18 Internet Service Providers Exit, Mobile Broadband Gains Dominance
In the Nigerian telecommunications industry, a significant contraction in the fixed broadband market has been observed, with a decrease of 18,500 subscribers from Q3 2024 to Q1 2025. This development is attributed to rising operational costs, persistent infrastructure gaps, and the continued migration of users towards cheaper and more accessible mobile internet services.
Starlink, a satellite connectivity provider, saw a 9% decline in its user base, while Spectranet, the largest fixed wireless provider by total subscriptions in Nigeria, recorded a 2.08% loss during the same period. FibreOne, a leading fibre-to-the-home provider in Nigeria, experienced a more substantial 42.4% drop in its user base.
The concentration of infrastructure and users in a few operators reflects ongoing challenges in expanding national broadband coverage, particularly in underserved and rural regions. The Nigerian Communications Commission (NCC) has reported that 18 licensed Internet Service Providers (ISPs) exited the market during this period.
To address these challenges, several regulatory interventions and initiatives are being pursued in Nigeria. The National Broadband Plan (NBP) targets 70% broadband penetration and 90% population coverage by 2025, with a focus on both urban and rural areas. It sets minimum speed requirements and emphasizes the need for robust last-mile connectivity.
InfraCo Licensing is another initiative designed to reduce reliance on major telecom operators and encourage competition and investment in underserved regions. Infrastructure companies (InfraCos) have been licensed to build, operate, and maintain regional broadband networks.
Ongoing policy reviews and reforms are being implemented to create a more favorable environment for infrastructure investment and reduce the cost of doing business for ISPs, particularly in rural areas. The NCC has been working to harmonize right-of-way fees and provide incentives for infrastructure deployment in unserved and underserved areas.
There is increased emphasis on collaboration between federal agencies, state governments, telecom operators, educational institutions, and healthcare providers. Joint efforts are aimed at addressing the digital divide and ensuring that critical institutions have access to reliable broadband.
Pilot projects have been launched in selected states to test scalable models for broadband delivery, with a focus on last-mile connectivity solutions tailored to local contexts.
However, high capacity and backhaul costs make rural broadband expansion significantly more expensive, which discourages ISPs from investing in last-mile infrastructure in these regions. Affordable access to backhaul remains a critical challenge for ISPs, as the cost disparity between urban and rural areas is unsustainable under current pricing and regulatory frameworks.
Experts recommend accelerating project implementation, securing stable funding, and harmonizing stakeholder efforts to improve last-mile connectivity and affordability. Without targeted regulatory intervention and improved affordability of last-mile infrastructure, the fixed broadband segment may continue to lose ground, potentially widening Nigeria's digital access gap.
Despite these challenges, mobile GSM subscriptions in Nigeria increased from 138.7 million in December 2024 to 141.6 million in January 2025, indicating a growing demand for internet services in the country. As of January 2025, total active telecommunications lines in Nigeria were 219.3 million.
[1] Nigerian Communications Commission (NCC) [2] National Broadband Plan (NBP) [3] International Telecommunication Union (ITU) [4] World Bank Group
- The contraction in the fixed broadband market, attributed to various factors, has also affected satellite connectivity providers like Starlink, as they experienced a 9% decline in their user base.
- In the quest to expand national broadband coverage, particularly in underserved and rural regions, the National Broadband Plan (NBP) targets 70% broadband penetration and 90% population coverage by 2025, with a focus on both urban and rural areas.
- To foster competition and investment in underserved regions, infrastructure companies (InfraCos) have been licensed under InfraCo Licensing to build, operate, and maintain regional broadband networks.
- As mobile GSM subscriptions in Nigeria continue to grow, indicating a demand for internet services, the affordability of last-mile infrastructure for fixed broadband remains a critical challenge for ISPs, particularly in rural areas, necessitating targeted regulatory intervention for improvement.
