Satellite vs. Fibre: NCC Licenses Six New ISPs as Broadband Market Heats Up in 2026

Nigeria’s broadband sector is entering a pivotal moment as the Nigerian Communications Commission (NCC) approved six new Internet Service Providers (ISPs), effective January 1, 2026. This move raises the total number of licensed ISPs to 231, up from 225 in December 2025, signaling the regulator’s push to expand broadband services and foster competition in the market.

Speaking on the new approvals, NCC Executive Vice Chairman, Prof. Umar Danbatta, stated, “Our goal is to ensure Nigeria achieves 70% broadband penetration by 2027. Licensing new ISPs is part of our strategy to expand access, encourage investment, and support innovation in the digital economy.” He emphasized that the Commission is focused on bridging the digital divide, particularly in rural and underserved areas, though he acknowledged the challenges posed by infrastructure costs and market concentration.

Among the newly licensed ISPs are Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited. Notably, Amazon Kuiper’s entry marks a significant development in the satellite broadband space, joining Starlink and other operators in reshaping Nigeria’s internet ecosystem. Amazon Kuiper will operate its 3,236-satellite Project Kuiper network, offering Ka-band services over Nigeria from 2026 to 2033.

Interestingly, Kehinde Joda, Head of Regulatory and Public Relations at FibreOne, noted the increasing difficulty for smaller ISPs to compete in a market dominated by capital-intensive players. “Innovation has to go beyond technology; smaller ISPs need to rethink customer experience, service differentiation, and operational efficiency to survive,” Joda said.

While these approvals reflect Nigeria’s openness to global satellite broadband providers and its commitment to bridging connectivity gaps, challenges persist. Geographically, five of the six new ISPs are based in Lagos, reinforcing the concentration of broadband infrastructure in urban hubs like Lagos, Abuja, and Port Harcourt. This clustering highlights ongoing gaps in rural and underserved areas where high infrastructure costs and weak consumer demand hinder expansion.

Competition in the sector is also intensifying, with traditional ISPs facing pressure from dominant mobile network operators such as MTN, Airtel, Globacom, and 9mobile, whose data services are more affordable and accessible. Satellite broadband providers like Starlink, which entered Nigeria in 2023, have further disrupted the landscape, rapidly gaining subscribers, particularly in regions underserved by terrestrial infrastructure. Amazon Kuiper’s approval is expected to heighten competition, reshaping pricing and consumer choice in the satellite broadband segment.

As of Q2 2025, NCC data showed that three major players—Spectranet, Starlink, and FibreOne—accounted for 65% of active ISP subscribers, illustrating the growing dominance of a few providers. Smaller ISPs continue to struggle with outdated business models and the capital-intensive nature of fibre deployment, raising concerns about market sustainability and inclusivity.

Experts like Chidi Ibisi, Executive Director of Business Development at Broadbased Communications Ltd, who commented on the entry of Amazon Kuiper Nigeria Limited observed that: “Satellite broadband providers like Starlink and now Kuiper are reshaping the landscape. Smaller ISPs must either collaborate or adapt quickly to avoid being completely edged out.”

Geographical Imbalance and Uneven Penetration
The concentration of ISPs in urban hubs like Lagos, Abuja, and Port Harcourt remains a concern. Five of the six newly licensed ISPs are based in Lagos, with only Granet Technologies headquartered in Owerri, Imo State. This underscores the challenge of expanding broadband infrastructure to rural areas, where demand is lower and costs are higher. Danbatta acknowledged this disparity, saying, “We are working on policies to incentivize ISPs to target underserved regions, but it requires collaboration across public and private sectors.”

Satellite Broadband Disruption
Amazon Kuiper’s entry into Nigeria’s broadband space is seen as a game-changer. Following Starlink’s debut in 2023, satellite broadband has rapidly gained traction in regions poorly served by terrestrial infrastructure. Amazon’s Kuiper project, which uses a 3,236-satellite network, aims to provide high-speed internet to remote areas, further intensifying competition in the market.

According to Danbatta, “The inclusion of global players like Kuiper aligns with our vision to attract foreign investment while ensuring Nigerians in hard-to-reach areas can access reliable broadband services.” However, industry stakeholders warn that satellite providers may further marginalize traditional ISPs struggling to deploy fibre networks.

Lessons from Other African Countries
Other African nations are tackling similar connectivity challenges with innovative strategies. For instance, Kenya has leveraged public-private partnerships to extend broadband access to rural areas, while South Africa’s open-access fibre networks have encouraged competition and reduced costs. Rwanda’s “Smart Rwanda” initiative focuses on nationwide fibre-optic rollout, offering lessons for Nigeria in bridging its digital divide.

These strategies provide valuable insights for Nigeria as it seeks to balance competition, inclusivity, and sustainability in its broadband sector.