Cameroon - Telecoms, Mobile, Broadband & Forecasts

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).