Abstract
Executive summary
Despite its oil resources and favourable agricultural conditions, Cameroon' s
GDP growth of between 2% and 4% over the past several years has lagged behind
other countries in the region, mainly as a result of a generally unfavourable
climate for business enterprise and a high level of corruption. The
International Monetary Fund is pressing for more reforms, including increased
budget transparency, privatisation, and poverty reduction programs.
The development of the country' s telecommunications sector mirrors this
situation. Although it is independently regulated, licensing is restrictive.
Cameroon is one of only a few countries in Africa left with only two competing
mobile networks, MTN and Orange, while most of its peers in the region have
moved on to licensing three, four or even more operators. The result is a
mobile market penetration rate that is below the African average and also
below that of other countries with similar GDP per capita levels, despite the
fact that Cameroon pioneered GSM mobile technology in Africa when it launched
the first network on the continent in 1993.
While the state-owned first mobile network was privatised in 1999, several
attempts to sell off the fixed-line business of Camtel, the national telco,
have failed amid concerns about the poor state of its network, operations and
finances. Fixed-line penetration is extremely low at 1% of the population.
Meanwhile, Camtel has ambitions to re-enter the lucrative mobile sector as the
third player, initially with a CDMA network it had originally built to provide
fixed-wireless access.
Camtel has been allowed to monopolise access to the SAT-3/WASC international
fibre optic submarine cable, Cameroon' s only source of high-capacity,
high-quality international bandwidth. This has led to extremely high prices
and a grey market of unlicensed satellite gateway operators offering Internet
access and VoIP services. Similarly, the national fibre backbone network is
currently still dominated by Camtel, but the launch of the first fibre between
the country' s two major cities in 2007 has improved service delivery. Prior to
this, Camtel and the two mobile operators were relying almost entirely on
microwave and satellite transmission. Alternative fibre backbones to compete
with Camtel' s are under development.
Mirroring a trend throughout developing markets, the average revenue per user
in Cameroon' s mobile sector has fallen continuously as lower income groups
gain access to services. The operators are trying to generate new revenue
streams from the virtually untapped Internet and broadband market by
introducing mobile data and WiMAX wireless broadband services.
Despite the obstacles, there has been steady progress in Cameroon' s
telecommunications market, and the convergence between fixed and mobile, voice
and data services has begun: while the fixed-line incumbent is re-entering the
mobile sector, the existing mobile operators are establishing themselves as
leading Internet Service Providers by introducing wireless broadband and
mobile data services and acquiring existing ISPs. The mobile operators are
also among the bidders in the privatisation of the fixed-line incumbent. The
existing ISPs are combining their forces by merging and preparing to offer
VoIP services through newly established wireless broadband networks.
Under a more liberal regulatory regime, Cameroons telecommunications market
could catch up very quickly with its peers in the region. The industry
regulator has indicated it plans to complete the privatisation of Camtel and
increase competition by licensing more operators.
Key highlights:
- Forecasts for Cameroon' s mobile market for 2010 and 2015;
- Profiles of major players in all market sectors;
- Mobile ARPU has fallen below US$10 per month in 2009;
- All major players have adopted WiMAX as broadband access technology;
- Competition in international fibre bandwidth expected in 2010;
- Significant improvements in national fibre backbone infrastructure;
- Privatisation of Camtel planned in a public-private partnership;
- Comparison with other countries in the region in terms of GDP, mobile,
fixed and Internet market penetration.
For those needing high level strategic information and objective analysis on
the telecommunications sector in Cameroon, this report is essential reading
and gives further information on:
- The growth potential of the country' s mobile market;
- Government policies affecting the telecoms industry;
- Market liberalisation and regulatory issues;
- Telecoms operators - privatisation, acquisitions, new licences;
- Internet and broadband development and growth;
- Mobile data services and pricing;
- Average Revenue per User (ARPU).
This annual report provides a comprehensive overview of trends and
developments in Cameroon' s telecommunications market.
Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Regulatory environment and structural reform;
- Major players (fixed, mobile and broadband);
- Infrastructure development;
- Mobile voice and data markets, including 3G;
- Average Revenue per User (ARPU) trends;
- Internet development;
- Broadband, including 3G mobile;
- Convergence (voice/data, fixed/wireless/mobile).
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