By 
By Osasome C.O
NCC Expands ISP Licensing as Competition Intensifies
The Nigerian Communications Commission (NCC) has approved six additional Internet Service Providers (ISPs). This raises the total number of licensed operators in the country to 231 as of January 2026, according to its updated licensing database.
RELATED: NCC licenses Amazon Project Kuiper, BeetleSat, Satelio IoT to boost satellite broadband competition in Nigeria
While the approvals underscore regulatory openness and Nigeria’s push to expand broadband access, industry stakeholders are worried. They warned that the move could further intensify competition, deepen market concentration, and threaten the survival of smaller ISPs. Small-pocket providerss are already operating under severe financial and structural pressure.
The newly licensed operators have been granted five-year licences effective from January 1, 2026, to December 31, 2030. They include Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Limited. Others are Boost ISP Limited, and Amazon Kuiper Nigeria Limited.
Amazon Kuiper’s Entry Signals New Competitive Phase
The most consequential of the new approvals is Amazon Kuiper Nigeria Limited, marking the formal entry of Amazon’s Project Kuiper. A global low-earth-orbit (LEO) satellite broadband service provider, Project Kuiper entry into Nigeria’s internet market means fiery competition for Elon Musk’s Starlink.
Analysts say Kuiper’s arrival signals a new phase of competition, particularly in satellite broadband, where Starlink has rapidly disrupted the market since launching in Nigeria in 2023. Starlink has already become the country’s second-largest ISP by subscriber numbers, displacing several local providers in the process.
With another global satellite operator now licensed, smaller terrestrial ISPs fear further erosion of their customer base. This would be especially the case in semi-urban and underserved areas where satellite services deploy faster than fibre.
Small ISPs Face a Growing Market Squeeze
The expansion comes at a difficult time for traditional ISPs. Many of them are grappling with shrinking subscriber numbers, rising costs, and aggressive competition from dominant Mobile Network Operators (MNOs) such as MTN, Airtel, Globacom, and 9mobile.
Industry data shows that the top three ISPs: Spectranet, Starlink, and FibreOne controlled about 65 per cent of active ISP customers as of Q2 2025. They leave the remaining market fragmented among more than 130 active operators.
Smaller ISPs warn that without regulatory safeguards, they risk being crowded out. Not neccessarily through unfair practices, but through the scale, capital strength, and pricing power of larger competitors.
“You cannot fight the big player; that is the reality. What we are asking for is a framework that allows everyone to coexist and remain viable,” said Chidi Ibisi, Executive Director of Business Development at Broadbased Communications Limited.
High Costs and Infrastructure Challenges Deepen Inequality
Beyond competition, structural challenges continue to disadvantage smaller operators. These include high Right-of-Way (RoW) charges, frequent vandalism of fibre infrastructure, unreliable electricity supply, and rising equipment costs.
According to Kehinde Joda, Head of Regulatory and Public Relations at FibreOne, many ISPs are also constrained by outdated business models.
“Many operators still focus solely on selling internet access without differentiation. Innovation today is about service design, customer experience, and value-added offerings not just bandwidth,” Joda said.
He added that fibre deployment remains highly capital-intensive, making expansion difficult for local and regional players.
Geographic Concentration Persists Despite New Licences
NCC data shows that five of the six newly licensed ISPs are headquartered in Lagos, Nigeria’s commercial capital. Only Granet Technologies Limited is operating outside major telecom hubs, from Owerri, Imo State.
The clustering reinforces a long-standing trend in which broadband infrastructure remains concentrated around Lagos, Abuja, and Port Harcourt, leaving large parts of the country underserved.
Analysts attribute this imbalance to higher demand in urban centres, infrastructure deployment costs, and faster returns on investment. ALl of these are raising concerns that licensing alone may not address Nigeria’s digital divide.
Satellite Broadband Redefines Market Dynamics
Competition in Nigeria’s ISP market is no longer limited to terrestrial providers. Satellite broadband services, which offer rapid deployment and wider coverage, are increasingly shaping consumer preferences.
Starlink’s growth—from 59,509 subscribers in Q1 2025 to 66,523 in Q2 2025—illustrates the pace of disruption. The licensing of Amazon Kuiper is expected to further intensify rivalry in the satellite segment, placing additional pressure on fibre-based and wireless ISPs.
The NCC has said the approvals align with Nigeria’s goal of expanding high-speed internet access, particularly in hard-to-reach areas. However, smaller operators argue that policy must balance expansion with sustainability.
Market Concentration Raises Long-Term Competition Questions
Despite having 231 licensed ISPs, only 133 reported active customer connections in Q2 2025, with total active subscriptions standing at 313,713 nationwide. This disparity highlights a market where licensing growth has not translated into broad-based participation.
As new licences take effect and global satellite operators scale up, analysts expect competition to intensify further, raising critical questions about market balance, innovation incentives, and the long-term viability of small and mid-sized ISPs.
Without targeted regulatory interventions, stakeholders warn that Nigeria risks evolving into a broadband market dominated by a handful of large players—potentially limiting consumer choice and undermining local entrepreneurship in the digital economy.
