Lagos — Leading telecom operators in Nigeria are accelerating plans to deploy satellite-enabled services. The focus is currently on direct-to-cell (D2C) technology to expand network coverage nationwide.

Industry analysts say the shift toward satellite partnerships will speed up network expansion and help bridge Nigeria’s persistent digital divide. More so, it will significantly strengthen operators’ revenue bases, which have already been on an upward trajectory since the approval and implementation of a 50 per cent tariff hike one year earlier.

MTN and Airtel, Nigeria’s two largest telecom operators, have concluded plans to move beyond heavy reliance on fibre-optic infrastructure for broadband deployment. Both companies are now focusing on satellite-based service delivery, a strategy they believe will reduce capital expenditure while improving coverage, especially in rural and hard-to-reach areas.

In 2024, MTN subsidiary Bayobab signed a multi-year agreement to integrate Eutelsat’s low earth orbit (LEO) satellites to expand cellular backhaul and rural coverage. This targets growing demand from enterprise customers in Nigeria and other markets.

Earlier, in 2023, MTN began partnerships centred on LEO satellite connectivity aimed at connecting underserved communities. More so, to extend mobile services to remote locations and improve network resilience.

According to MTN, its satellite strategy is anchored on two complementary LEO-based solutions. The first leverages direct-to-cell technology to enhance network access in underserved regions without requiring special devices or handset modifications.

The second uses LEO satellites to deliver fixed connectivity to enterprise customers and provide efficient backhaul for MTN’s cellular sites, offering a more affordable alternative in remote and rural locations.

Airtel Nigeria has also taken decisive steps in the D2C space. In December 2025, the company partnered with SpaceX to introduce Starlink’s Direct-to-Cell connectivity across Nigeria and its other 13 markets. The initiative will allow Airtel customers to access satellite-enabled mobile services in areas lacking terrestrial network coverage.

The partnership builds on a broader agreement signed last month between Airtel Africa and SpaceX to roll out Starlink’s D2C LEO satellite service across all 14 Airtel Africa markets. Airtel Nigeria is also already reselling Starlink’s satellite broadband service under an earlier agreement reached in May 2025.

Telecom Revenue Surge in 2026

In their financial disclosures, telecom operators acknowledged that the 50 per cent tariff hike approved and implemented in February last year positively impacted their bottom lines.

MTN Nigeria reported data revenue of ₦528.98 billion in the first quarter of 2025, accounting for 50 per cent of its total revenue and surpassing voice revenue. This represented a 51.5 per cent year-on-year increase, driven by a growing user base and rising data consumption.

Airtel Nigeria, in its fiscal year ending March 2025, reported estimated data revenue of about $483 million. While this marked a decline compared to 2024 due to exchange rate fluctuations, the company recorded a strong underlying performance, posting a 45 per cent increase in data revenue on a constant-currency basis.

As of December 29, 2025, MTN maintained its market leadership with 51.89 per cent share and over 91.9 million subscribers. Airtel followed with 33.78 per cent, while Glo and T2 accounted for 12.54 per cent and 1.8 per cent respectively.