By The recent decision by the Nigerian Communications Commission (NCC) to grant operating licences to satellite companies, including Amazon’s Project Kuiper and BeeSat, has reignited debate over whether the move will lead to lower data costs for Nigerians or primarily expand access and competition within the broadband market.
Industry stakeholders agree that while the entry of new satellite players is a positive signal for Nigeria’s digital ecosystem, expectations of immediate and widespread reductions in data prices may be misplaced, especially for the average mobile internet user.
Speaking to PULSEWIRENG, the Chief Executive Officer of Digital Realty Nigeria, Ike Nnamani, said the licensing of additional satellite operators would increase the number of internet service providers (ISPs) in the country a development he described as fundamentally beneficial to the market.
According to him, “The availability of additional service providers naturally introduces more competition, and in any market, competition can lead to potential price reductions for end users. Beyond pricing, however, it also improves service quality, reliability, and innovation, which are equally important outcomes for consumers.”
Nnamani added that satellite operators such as Project Kuiper and BeeSat could complement rather than compete directly with existing providers. He explained that, if properly structured, satellite firms could operate as “carriers’ carriers,” supporting traditional ISPs—particularly in underserved rural areas—while also helping to boost capacity in congested urban centres.
Director, Africa Hyperscalers, Temitope Osunrinde, said it was important to separate public expectations from market realities. While lauding the licensing of low-earth-orbit (LEO) satellite internet providers, he noted that satellite broadband is structurally more expensive than terrestrial technologies such as fibre optics and fixed wireless networks.
“Will the entry of satellite operators like Kuiper lead to a broad reduction in data costs? I do not expect that outcome,” Osunrinde said. “Satellite connectivity is inherently capital-intensive and is not optimised for low-cost, mass-market pricing in the same way terrestrial infrastructure is.”
He, however, described the licensing of Amazon’s Project Kuiper and BeeSat as a strategic milestone for Nigeria, noting that it reinforces the country’s position as a global digital market and strengthens competition across the broader broadband landscape.
Osunrinde further revealed that investments in satellite infrastructure significantly outweigh those of undersea cable systems.
“The 2Africa subsea cable—the longest ever built—cost just under $1 billion. By contrast, Amazon has already invested over $10 billion in Project Kuiper and may spend up to $30 billion, while Starlink’s investment is estimated between $10 billion and $15 billion. These operators will inevitably seek to recover these costs,” he explained.
According to him, satellite broadband is primarily designed for coverage, resilience, and inclusion rather than low-cost data. Its strongest use cases remain in rural communities, maritime operations, oil and gas activities, and remote enterprise locations where terrestrial networks are unavailable or unreliable.
He added that the average Nigerian is more likely to experience immediate benefits through increased choice and improved service reliability rather than cheaper data, noting that Project Kuiper could be relevant in both rural and urban areas where network stability remains a challenge.
“Beyond basic connectivity, Project Kuiper should be viewed within Amazon’s broader technology ecosystem,” Osunrinde said. “Kuiper is an extension of Amazon’s vertically integrated stack—spanning cloud services, devices, logistics, and digital platforms. Over time, this integration could reshape how enterprises consume connectivity, cloud, security, and monitoring services as a unified solution.”
He noted that the entry of Kuiper and BeeSat, alongside existing satellite operators, would intensify competitive pressure within the ISP and fixed broadband market, similar to the disruption following Starlink’s entry, which saw it become Nigeria’s second-largest fixed broadband provider within 18 months.
Meanwhile, innovation and technology policy adviser, Jide Awe, said the development could heighten competition within the satellite internet segment, potentially compelling providers to adjust pricing and introduce promotional offers.
Awe, however, cautioned that satellite internet remains expensive to deploy and maintain, making it unlikely to compete directly with low-cost mobile data services.
“Meaningful price reductions are more likely to occur within the satellite market itself rather than across the broader mobile data ecosystem,” he said.
He added that the expansion of satellite services aligns with the objectives of the National Broadband Plan, particularly in extending connectivity to remote and underserved areas, but stressed that issues around local ISP sustainability, digital inclusion, and digital independence would require deliberate policy guidance to ensure long-term benefits for the country.
