Starlink’s Nigerian Dominance Under Threat as NCC Licences Amazon, European Rivals

Starlink’s Nigerian Dominance Under Threat as NCC Licences Amazon, European Rivals

  • Nigeria's NCC approves new satellite internet licences, intensifying competition for Starlink in the broadband market
  • Over 23 million Nigerians lack digital access, prompting a push for satellite broadband expansion
  • Amazon Leo's entry could disrupt Starlink's dominance with multiple service categories and extensive satellite deployment

Elon Musk’s Starlink is facing its stiffest challenge yet in Nigeria after the Nigerian Communications Commission (NCC) approved new satellite internet licences for global and regional players, opening the door to heightened competition in the country’s fast-growing broadband market.

The NCC has issued seven-year satellite permits to Amazon’s low-Earth orbit broadband network, Amazon Leo (formerly Project Kuiper), Israel-backed BeetleSat and Germany-based Satelio IoT Services.

The licences, which take effect from February, allow the new operators to provide satellite connectivity across Nigeria alongside Starlink, which launched commercially in the country in 2023.

Starlink, Kuiper, Satellite internet provider, NCC
Nigeria licences new players to provide satellite internet to rival Starlink. Credit: Bloomberg/Contributor
Source: UGC

Nigeria’s digital divide fuels satellite broadband push

The approvals come as Nigeria battles a widening digital access gap.

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According to the NCC, over 23 million Nigerians still live in unserved or underserved areas, while mobile broadband access stood at 50.58% as of November 2025.

These figures underscore the limits of terrestrial infrastructure in reaching rural, remote and hard-to-access communities.

Satellite internet, regulators say, offers a faster route to expanding coverage without the delays and costs associated with fibre deployment, tower construction and last-mile connectivity.

Starlink’s rapid rise in Nigeria

SpaceX first secured a satellite permit in Nigeria in January 2021 but rolled out Starlink two years later, making Nigeria its first African market. The company later obtained an additional licence valid through 2030.

By the end of the second quarter of 2025, Starlink had amassed 66,523 subscribers, emerging as Nigeria’s second-largest internet service provider behind Spectranet.

Its rapid adoption has positioned it as a key player in connecting homes, businesses and institutions beyond major cities.

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Amazon’s entry changes the competitive equation

Among the newly licensed firms, Amazon Leo is expected to have the biggest impact.

Its permit covers three service categories: fixed satellite services (FSS) for homes and offices, mobile satellite services (MSS) for aviation and maritime connectivity, and earth stations in motion (ESIM), which enable continuous broadband for vehicles, ships and aircraft.

In contrast, Starlink and BeetleSat are licensed only for FSS, while Satelio focuses on MSS.

Amazon plans to deploy a constellation of 3,236 satellites, directly challenging Starlink’s early dominance in Nigeria’s low-Earth orbit broadband segment, according to a report by Forbes Africa.

“Starlink has enjoyed a quasi-exclusive position. That status quo has now been punctured,” says Elamah Mesahidu, Managing Partner at Hutchlam Services.

Opportunities and cybersecurity risks for fintechs

Expanded satellite connectivity could unlock new opportunities for financial inclusion, particularly in rural areas.

Gbolabo Awelewa, Chief Business Officer at Esentry Systems, notes that more connectivity means more digital endpoints and data flows.

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However, he warns that this also broadens cybersecurity risks for banks and fintechs, making encryption, zero-trust systems and cross-border data governance increasingly critical.

Satellite internet as a complement, not a replacement

Nigeria’s broadband market remains heavily mobile-led, with 4G and early 5G networks carrying most traffic, while fibre remains concentrated in urban centres.

According to IT engineer Olumide Olu-Oshadare, satellite broadband should be seen as an additional network layer rather than a substitute for fibre.

In a country plagued by fibre cuts and infrastructure vandalism, satellite connectivity also provides vital redundancy for critical institutions and businesses.

Starlink, Kuiper, Satellite internet provider, NCC
FG to rollout Satellite-to-phone internet services for 23.3 million Nigerians Credit: Novatis
Source: Getty Images

As competition intensifies, pricing pressure, service improvements and innovation are expected to follow. Still, industry watchers caution that Nigeria’s telecom history shows licences do not always translate into rapid deployment.

NCC plans satellite-to-phone rollout for Nigerians

Legit.ng earlier reported that Nigeria is on the brink of a major connectivity shift as the Nigerian Communications Commission (NCC) moves to roll out satellite-to-phone internet services aimed at reaching an estimated 23.3 million Nigerians who remain unserved by traditional mobile networks.

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In a consultation paper published on its website, the telecoms regulator said it plans to leverage satellite technology to close long-standing coverage gaps, particularly in rural and hard-to-reach areas where deploying base stations is either too costly or operationally difficult.

The initiative is part of the NCC’s broader push to achieve universal access to voice and data services across the country.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng