NCC Expands Broadband Market with Six New Internet Service Provider Licences
The Nigerian Communications Commission has granted operating licences to six new Internet Service Providers, a strategic move designed to foster greater competition within Nigeria's rapidly evolving broadband sector. This regulatory decision marks a significant development in the country's telecommunications landscape, with implications for both consumers and established market players.
Licensing Details and Geographic Concentration
According to official data from the NCC's updated licensing database, these approvals became effective from January 1, 2026. This authorization raises the total number of licensed Internet Service Providers operating within Nigeria to 231, representing an increase from the 225 providers recorded in December 2025. The newly licensed companies include Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Limited, Boost ISP Limited, and Amazon Kuiper Nigeria Limited.
Geographic distribution reveals a continued concentration in major commercial hubs, with five of these newly licensed firms headquartered in Lagos, while one operates from Owerri in Imo State. This pattern reflects broader industry trends where most licensed ISPs remain clustered in Lagos, Abuja, and Port Harcourt, where consumer demand is stronger and telecommunications infrastructure is relatively more developed.
Market Challenges and Competitive Pressures
The NCC's licensing expansion comes at a particularly challenging time for many established fixed broadband operators. Traditional Internet Service Providers are facing mounting competitive pressures from multiple directions, including more affordable and flexible data offerings from major mobile network operators such as MTN, Airtel, Globacom, and 9mobile. Additionally, the rapid expansion of satellite broadband services has introduced another layer of competition that is reshaping consumer expectations around internet speed and availability.
Industry experts note that factors such as high right-of-way charges, security challenges in certain regions, and the substantial capital investment required for network deployment have historically limited expansion into less commercially attractive areas. These barriers contribute to the continued geographic concentration of broadband services around Nigeria's major urban centers.
Expert Perspectives on Market Dynamics
Chidi Ibisi, Executive Director for Business Development at Broadbased Communications Ltd, observes that competition within the sector increasingly favors larger, well-capitalized operators. He notes that scale, nationwide reach, and stronger investment capacity often provide bigger players with natural competitive advantages, even in the absence of overt anti-competitive practices.
Kehinde Joda, Head of Regulatory and Public Relations at FibreOne, offers additional insight, suggesting that some competitive pressure stems from internal limitations among Internet Service Providers. Many operators continue to rely on traditional business models focused primarily on selling internet access without sufficient differentiation through innovative service design, enhanced customer management, or adaptation to evolving consumer needs.
Joda further emphasizes that infrastructure costs remain a significant barrier, particularly for fibre-based providers, as building and maintaining resilient networks requires substantial upfront investment with extended payback periods.
Satellite Broadband Intensifies Competition
The competitive landscape has evolved beyond traditional rivalries between fixed broadband providers and mobile network operators. Satellite-based Internet Service Providers, with their ability to deliver coverage across wide geographic areas including hard-to-reach regions, are fundamentally reshaping market dynamics.
Starlink, which entered the Nigerian market in 2023, has already attracted significant subscriber numbers from local Internet Service Providers and currently ranks as the country's second-largest ISP by customer count. The entry of Amazon Kuiper Nigeria Limited is expected to further intensify competition within the low-earth-orbit satellite broadband segment, challenging Starlink's growing market presence.
The NCC has stated that approving global satellite operators reflects Nigeria's openness to international broadband providers and responds to growing demand for high-speed internet in underserved areas where terrestrial infrastructure remains limited.
Market Concentration and Future Implications
Recent NCC figures highlight the growing concentration within Nigeria's broadband market. Data from the second quarter of 2025 revealed that Spectranet, Starlink, and FibreOne collectively accounted for approximately 65 percent of active Internet Service Provider customers nationwide, with total users reaching 313,713 during that period.
As new licences are issued and satellite services continue to expand, industry analysts predict that competition within Nigeria's ISP market will deepen further. This intensifying competition raises important questions about sustainability, regulatory frameworks, and the future structure of broadband delivery across the country.
The NCC has also issued seven-year satellite permits to additional global and regional players, including Amazon's low-Earth orbit broadband network (Amazon Leo, formerly Project Kuiper), Israel-backed BeetleSat, and Germany-based Satelio IoT Services. These licences, effective from February, authorize new operators to provide satellite connectivity across Nigeria alongside existing providers like Starlink.
