NCC Licenses Six New ISPs as Competition Intensifies with Starlink, MNOs, and Market Concentration

The Nigerian Communications Commission (NCC) has licensed six new Internet Service Providers (ISPs) effective January 1, 2026, raising the total number of authorised ISPs in Nigeria to 231, up from 225 in December 2025.

Per Nairametrics, The new entrants—Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited—reflect both local entrepreneurial activity and global satellite expansion into Nigeria’s fast-evolving broadband market.

Five of the six companies are headquartered in Lagos, with one based in Owerri, Imo State. This geographic skew highlights persistent challenges in broadband deployment: high fibre rollout costs, concentrated urban demand, and limited commercial viability in rural and semi-urban areas. Despite Nigeria’s population exceeding 220 million, licensed ISPs remain clustered around Lagos, Abuja, and Port Harcourt, leaving significant coverage gaps.

Rising Competition in Broadband

The licensing comes amid intensifying competition. Traditional fixed and wireless ISPs face pressure from mobile network operators (MNOs)—MTN, Airtel, Globacom, and 9mobile—which dominate retail data through affordable mobile broadband plans, extensive coverage, and bundled services.

Satellite providers have further disrupted the landscape. Starlink, launched in Nigeria in 2023, quickly became the second-largest ISP by active customers, offering low-latency, high-speed internet via low-Earth orbit (LEO) satellites. Its appeal lies in reaching underserved areas and premium users. The entry of Amazon Kuiper Nigeria Limited, backed by Amazon’s Project Kuiper constellation, sets up a direct challenge to Starlink, promising broader coverage and potentially lower pricing in hard-to-reach regions.

Market Concentration

NCC data for Q2 2025 showed only 133 of 125 licensed ISPs reported active connections, totalling 313,713 users. The market was highly concentrated:

• Spectranet led with 99,520 customers (though declining).
• Starlink followed with 66,523 (rapidly rising).
• FibreOne had 37,117.

Together, these three controlled about 65% of the active ISP market, underscoring consolidation despite new licences.

Stakeholder Perspectives

Industry voices remain divided.

• Chidi Ibisi of Broadbased Communications noted: “You cannot fight the big player; that is the reality; what we are asking for is a way to work harmoniously, where everyone gets a piece of the pie.” He stressed that dominance stems from nationwide reach and investment power.
• Kehinde Joda of FibreOne highlighted structural challenges: many ISPs rely on plain internet access models without differentiation through value-added services like cloud, security, or enterprise solutions. He emphasized innovation in packaging, customer management, and adaptation to needs, alongside the capital-intensive nature of fibre deployment.

Policy and Outlook

The NCC’s open licensing regime reflects Nigeria’s policy of welcoming global satellite broadband providers to meet rising demand for high-speed connectivity, particularly in underserved regions. However, terrestrial operators continue to advocate for balanced regulation—fair access to infrastructure, equitable spectrum allocation, and incentives for rural rollout—to protect local investment while enabling satellite expansion.

As competition heats up, analysts expect further shifts toward hybrid models, premium satellite offerings in rural areas, and pressure on smaller ISPs to consolidate, innovate, or specialize. The entry of Amazon Kuiper signals that Nigeria’s broadband market is entering a new phase of global-local competition, with regulatory choices likely to determine whether diversity or concentration prevails.