Industry Trend Analysis - Better Regulation No Guarantee Of Improved Telecoms Service - FEB 2018

BMI View: While the Cameroonian regula tor has become more proactive, this will not necessarily result in an improved environment for telecom companies if over regulation and fines constrict competition and investment.

The Agence de Regulation des Telecommunications (ART) has sanctioned Cameroon's four operators for failing to adhere to subscriber' identification verification procedures. Unspecified violations of 'radio frequency requirements' have also drawn complaints. MTN Cameroon, Orange and Viettel ( Nexttel) face fines of at least USD6.6mn (XAF3.6bn), although for MTN the financial penalty was also followed by a one-year reduction of the 15-year licence it was granted in 2015. For CamTel, the state-owned wireline operator, the fine was only USD543,000 (XAF300mn). MTN has denied the regulator's claim; the others are yet to comment.

For Q118, Cameroon scores 50 out of a potential 100 points in terms of Industry Risk within our Telecoms Risk/Rewards Index, below the average of 55.8 for Central Africa. In the past, the regulator has been slow to intervene in market affairs when needed, which has affected our scoring, but recent developments may lead to an improvement.

Industry Risks Holding Back Cameroon
Cameroon Vs Regional Risk/Rewards Scores, Q118
Source: BMI

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