Starting in the third quarter of 2024, Elon Musk’s internet service, Starlink, will not be available in Ghana.
As a result, satellite communication is available in the West African country, and its use has caused a cloud of disagreement.
According to a circular released yesterday, Ghana’s National Communications Authority (NCA), which oversees telecommunications, Starlink-type equipment has not yet been officially cleared. Furthermore, NCA clarified that the service was not yet given a local working license.
Regulatory officials are now looking into how dealers are selling Starlink kits. The government said offering internet services without permission is against its Electronic Communications Act.
The NCA warned people not to use any tools or services that were said to be from Starlink. “People who work in the sale or operation of the service are also told to stop right away,” the statement said.
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National Communications Authority Move
The NCA’s action may have something to do with recent posts on social media about local stores bringing in the equipment and selling it for ridiculously high prices.
An X post from two days ago about Starlink prices said that intermediaries charge home users 7,800 cedis ($650) and businesses 30,000 cedis ($2,500). CediRates is a website that tracks Ghana’s currency exchange rates and the costs of popular services.
According to CediRates, a residential subscription costs 1,100 to 1,500 cedis ($91 to $124) per month, while a commercial membership costs 3,000 to 18,000 cedis ($250 to $1500).
On the other hand, Starlink’s website says that the no-cap service can only be pre-ordered from Ghana for $9 as long as it gets regulatory permission. A basic plan usually costs $689 and comes with a $90 monthly subscription.
It is unclear how Starlink kits are making it to Ghana. But, from what’s evident in other parts of the continent where the platform has come under similar regulatory pressure, the equipment is likely being imported from next-door markets where the service is legal.
Nigeria gets Starlink first in Africa
Nigeria is Ghana’s closest neighbor. In January 2023, Starlink went live there after getting permission from the Nigerian Communications Commission (NCC), the country’s telecoms body. Niger was the first country in Africa to get the service after it was launched.
In the south, third parties bought kits from neighboring Mozambique, where it is allowed, and then sold them to people in South Africa. But since then, the government has made the practice illegal, and the equipment is said to be getting type approval before it goes on public launch.
Accra still has trouble getting stable and cheap internet access, so Starlink’s satellite internet service has been met with excitement and doubt.
While it is faster and covers more areas, it is much more expensive than standard internet services from local cell phone companies.
Additionally, more mobile consumers are complaining about rising data plan pricing. Sancom Plc (MTN Ghana) raised voice and data charges by 15% for prepaid and postpaid users last month because of rising operating costs.
Ghana used to offer one of the cheapest internet plans in Sub-Saharan Africa, but studies say that is outdated. Surfshark reported in September that internet affordability has fallen over the previous year as individuals work harder to buy the same data package.
Ghana ranks 88th out of 177 nations in mobile internet speed, making it the slowest in Africa.