Afghanistan's telecommunications sector and a growing digital media industry are among the Afghan government's biggest achievements since the fall of the Taliban regime in 2001.
The new satellite, AFGHANSAT 1, will support a wide range of services including broadcasting, mobile telephony and IP connectivity, officials said.
"We can say it is a historical move, because for the first time Afghanistan is renting a satellite," Amirzai Sangin, minister of Information Technology and Telecommunication said in Kabul as Afghanistan started to use the satellite.
"We are renting this satellite for USD 4 million per year, and based on our calculations, we can earn USD 15 million annually from it," Sangin added.
The boom in Afghan media in the past 12 years is one of the most visible bright spots to foster a stable democracy, even as the NATO troops are preparing to withdraw from Afghanistan.
The country remains wracked by war with Taliban insurgents and mired in corruption and poverty.
While many remote mountainous regions still lack connectivity, the internet is booming in the big cities.
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