By Emmanuel Ogbodo
The number of active Internet Service Providers (ISPs) in Nigeria decreased to 242 in July, down from 252 in May, as revealed by the Nigerian Communication Commission’s (NCC) July database update. This decline comes as 12 ISPs failed to renew their licences, despite recent issuances to new operators like Sulfman Consulting Ltd. and NGCOM Lastmile Solution Ltd. on July 1.
NCC’s concern over the non-renewal trend highlights ongoing challenges in the sector. The five-year licence, costing N500,000, is renewable, but many operators have not adhered to renewal protocols, contributing to the dwindling number of active ISPs.
Former NCC Executive Vice Chairman, Prof Umar Danbatta, attributed the sector’s struggles to anti-competitive practices and cited additional challenges such as inadequate spectrum allocation, high bandwidth costs, expensive Right of Way, and poor corporate governance.
The competition between ISPs and mobile operators has intensified, particularly with the launch of 5G services by major mobile operators like MTN and Airtel. This development has prompted some enterprise customers to switch to 5G routers, further marginalizing traditional ISPs that focus solely on internet services.
Mobile operators, operating under Unified Access Service Licence (UASL), dominate the internet market in Nigeria. MTN, Airtel, Globacom, and 9mobile collectively serve a vast majority of the country’s active internet subscriptions, overshadowing standalone ISPs.
As of Q1 2024, leading ISPs reported 262,206 active customers, while the four major Mobile Network Operators (MNOs) boasted 163.8 million active internet subscriptions. This disparity underscores the challenge for ISPs to compete effectively amid the dominance of mobile giants in Nigeria’s telecommunications landscape.
