Nigeria welcomes new Internet Service Providers

Nigeria welcomes new Internet Service Providers

Following the recent licensing of 19 new businesses, the total number of Internet Service Providers in Nigeria has reached 258. It is anticipated that the expansion in Internet service providers would propel the prevalence of broadband services to reach 70 percent by the year 2025.  

The fact that mobile network operators (MNOs) like MTN, Airtel, Globacom, and 9mobile provide cheaper retail data options creates issues for internet service providers’ retail data packages. However, internet service providers (ISPs) complain of harsh competition from MNOs.

It is essential to be aware that the majority of internet service providers are clustered around the large hubs of Port Harcourt, Abuja, and Lagos. The fact that ISPs must restrict their service to a specific region has become a difficulty for the industry.

According to reports provided by Prof. Umar Danbatta, the Executive Vice Chairman of the NCC, there were a total of 756 businesses that were licenced in March 2022; however, only 188 of those businesses are currently operational. It is believed that this transpired as a direct consequence of unethical competition practices inside the sector.

It is a goal of the government of Nigeria to bridge the digital divide between rural and urban areas and give universal access to broadband internet. In order to accomplish this goal, the Nigerian Communications Commission (NCC) has taken regulatory measures to ensure that smaller participants in the industry, such as Internet service providers (ISPs), have a fair playing field on which they can prosper.

Read also: AMS-IX, MDXi launch new Internet Exchange in Nigeria

Plans of NCC

The National Communications Commission (NCC) is planning to introduce regulatory policies, guidelines, frameworks, and interventions that will help promote healthy competition among competing licensees. These policies, guidelines, and frameworks will encourage fairness in the telecommunications industry and incorporate an atmosphere of openness and transparency in industry practices.

As a result of the extensive presence of mobile networks in this market, Internet service providers mostly cater to businesses. In February of this year, mobile network operators (MNOs) reported having 156.4 million active internet subscriptions, while internet service providers (ISPs) reported having 204,810 active internet clients.

Because of the competition between mobile network operators and Internet service providers, we are left wondering how smaller players will fare in this environment and what the government will do to help close the growing digital divide.

Some Internet Service Providers in Nigeria

According to Q2 2022 data, the top 10 Nigerian ISPs by user counts are:

1. Spectranet

Spectranet received an NCC licence in 2009 to market Internet services in Nigeria. Spectranet, one of Nigeria’s first 4G LTE internet service providers, intends to lead the industry.

The NCC’s website states that this ISP has the most connected and active subscribers. 113,900 active clients out of 275,973 connected customers. The corporation had 626 Nigerian locations.

2. Tizeti

Tizeti provides high-speed broadband internet to residences, businesses, events, conferences and public Wi-fi Hotspots around Africa. The company is using Wi-fi’s vast wireless capacity and falling solar panel prices to establish a low CAPEX/OPEX network of owned and operated towers to offer disruptive, customer-friendly pricing for unlimited internet across Africa.

The NCC lists the company as Nigeria’s second-largest ISP by subscribers. Tizeti had 37,368 subscribers in Q2 2022, 17,401 of which were active. The ISP had 130 sites.

3. IPNX

IPNX is Nigeria’s third-largest licenced ISP by customers. The country’s fastest-growing ISP serves companies, small businesses, and residents with innovative, world-class services.

IPNX, a pioneer and major Nigerian Fibre-To-The-Home (FTTH) operator, had 18,130 connected subscribers in Q2 this year, 12,544 of whom were active. It has 54 locations.

4. Astramix Ltd

Astramix Limited provides high-speed uninterruptible data and internet connectivity. The company claims to have the most reliable, uninterruptible, and efficient top-of-the-line data solutions and first-class communication technologies.

The ISP is extending its markets and operations bases to deliver uninterrupted access to Nigeria’s business and private sectors using only Grade “A” brands for airtime, hardware, and technology.

As it gained consumers, Astamix rose from 9th to 4th in the Q1 ISP rankings. As of Q2 2022, 15,000 subscribers were connected, 10,000 actively. Company had 5 locations.

5. VDT Communications

VDT is a licensed private network provider that provides Enterprise-Wide Area Network (WAN) and Metropolitan Area Network (MAN) connection connectivity using Fibre Optic and Wireless Communication infrastructure and access networks. VDT is a broadband communication service provider to corporate organisations with leased Fibre Optic trunks to the thirty-six (36) states in Nigeria and the FCT, 59 Point-Of-Presence (POP), and technical support people.

The NCC reported 12,185 connected customers and 6,605 active users for VDT in Q2 2022.

6. Limited Cyberspace

Cyberspace, a totally owned Nigerian company, was created in 1995. With its world-class internet protocol (IP) infrastructure, the company has become a complete network and software solution provider in the market by providing high-value ICT services and cutting-edge networking solutions.

The company launched its 4G LTE network in 2014, promising 10x faster speeds, mobility, and security. Cyberspace has 4,235 active subscribers in Q2 2022, according to NCC data. Nigeria has 138 ISP locations.

7. 21st Century

21st Century Technologies Limited, a Nigerian licenced ICT services provider, was founded in 1997. The company operates one of Nigeria’s largest optical fibre cable metropolitan networks with speeds up to 10Gbps, high-speed Corporate Dedicated Internet Access and IRUs, and fully redundant International subsea fibre capacity with two suppliers.

2,571 of its 5,296 subscribers were active in Q2 2022. ISP had 50 locations.

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8. Suburban Broadband

Suburban Broadband Ltd. is a next-generation multimedia service provider in Lagos and Abuja. Premium content, TV, Internet, Voice, connected homes, security, and utility management among its goods.

All 4,419 clients were active for the company. It had four locations.

9. Cobranet Ltd.

Cobranet Limited, founded in 2003, is Nigeria’s top Internet and data provider. The organisation offers reliable and secure Internet Service and Data management to all Nigerians.

Cobranet offers residential and corporate internet plans in Lagos, Abuja, and Port Harcourt over a state-of-the-art radio network. The company had 3,621 subscribers in Q2 2022, all of whom were active. It had 84 sites.

10. RTN Ltd.

Lagos-based ISP Radical Technology Network Ltd. has offices in Abuja, Port Harcourt, Kano, and Onitsha. The company’s strong customer responsiveness and service quality have won it a long-standing relationship with its clients and made it one of Nigeria’s most trusted ISPs.

As of Q2 2022, 1,882 of 2,556 ISP customers were active. The company had 6 locations.