Developing Telecoms | Cameroon: New player + lower costs = more subscribers

17 May 2012

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Cameroon: New player + lower costs = more subscribers

Monday, 01 June 2009 01:00

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A potential new player in Cameroon's mobile market as well as regulatory pressure to cut prices will help to more than double the mobile penetration in Cameroon by 2014, according to a new report from Research & Markets (R&M).

Communications Markets in Cameroon offers a precise, incisive profile of the country's converged telecommunications, media, and technology sectors, based on proprietary data from R&M's research in the Cameroon market. The 23-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMAX, IPTV, and VoIP. The study also provides a comprehensive view of the Cameroon communications market by analysing key trends, evaluating near-term opportunities, and assessing upcoming risks factors.

Cameroon is characterised by high per-minute prices and a lower penetration than its GDP per capita would suggest, reaching only 30% at year-end 2008, notes author Yejide Onabule: "However, due to the potential entry of a third mobile operator and the increased use of mobile services due to regulatory pressure to cut prices [R&M] predicts Cameroon's mobile penetration to more than double in the next five years from the 36% expected in 2009 to 80% by 2014.

"There are currently three main players in Cameroon's telecom market: fixed incumbent Camtel, which dominates the fixed market, MTN, and Orange sharing the mobile space...The potential entry of Camtel as an operator in the mobile market will hit MTN's share the most, while Orange will maintain a more stable position." says Yejide Onabule.

She continues: "Camtel, as the only operator with a fixed wireline network, would have an edge in providing converged services, once it's able to get over its funding problems and privatisation process. All three operators should consider further investments to upgrade and improve their network and services - with the introduction of higher network speeds and new applications, the use of mobile broadband and other data services will increase."

* Communications Markets in Cameroon is part of R&M's Africa and the Middle East Country Intelligence Report Series. Its Country Intelligence Reports analyse market trends, regulatory environments, and competitive dynamics for 60 countries worldwide.

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