(Ecofin Agency) - The National Communications Authority of Ghana (NCA) has approved SpaceX Starlink GH LTD, the local subsidiary of the American company, to provide high-speed satellite internet services in the country. In a statement released on April 25, the regulator announced that administrative procedures for the issuance of the operating license are underway and expected to be completed soon.

“The approval of the application follows the policy approval of the satellite licensing framework in Ghana by the Ministry of Communications and Digitalization,” stated the Ghanaian communications regulator in its release.

The process was expedited following disruptions in internet service a few weeks ago due to incidents involving various undersea fiber optic cables. Licensing satellite telecom service operators is part of the measures implemented by the NCA to prevent such situations in the future and ensure good service quality to consumers. Also, consumers have shown increasing interest in Starlink services. In December 2023, the regulator had to warn against the illegal provision and use of Starlink services.

Starlink's entry into the Ghanaian telecom market is expected to bolster competition and improve internet adoption in the country. The company will be able to provide its services directly to consumers through its kit or lease its capacities to telecom operators and internet service providers to fill coverage gaps. It plans to commence commercial operations in Ghana starting from the third quarter of 2024.

Ghana had 22.6 million subscribers to mobile internet services with a penetration rate of 70.8% in the first quarter of 2023, according to the latest available statistics from the NCA. There were also about 105,800 subscribers to fixed internet services.