Privatization is the talk of the town in telecoms
LIBERALIZATION HAS REVITALIZED CAMEROON'S TELECOMMUNICATIONS SECTOR THANKS TO THE EXTENSIVE COVERAGE AND IMPROVED QUALITY OF SERVICE OFFERED BY PRIVATE OPERATORS SUCH AS SCM MOBILIS AND SOUTH AFRICA'S MTN

In a country where there are fewer than 100,000 fixed-line telephones for a population of almost 15 million, the sky is the limit for cell-phone operators.
The opening up of the telecommunications sector in 1999, ending the state monopoly held by Cameroon Telecommunica-tions (Camtel), has also been a boon to users, who often had to wait years to get a fixed-line telephone installed.

Now, they can simply pop into a cell-phone center and pick up a complete kit, with an assigned number, which they can use in an ever-growing number of areas throughout the country.
A free market means freedom of choice. Customers now have two different operators vying for their business: SCM (Société Camerounaise de Mobiles) Mobilis, which is the local affiliate of France Télécom-Orange, and the South African-based MTN (Mobile Telephone Network).

Jacques Fame Ndongo Minister of Communications

The Communications Minister, Jacques Fame Ndongo, points out that Cameroon successfully liberalized the telecoms sector some time ago, and stresses that the country is privileged to enjoy “freedom of the press and of opinion.”
SCM Mobilis was the first operator to set up its own network, after receiving the country’s first private mobile telephony license in July 1999, a year after the government decided to privatize Camtel. Its network began operations in January 2000.
MTN moved into Cameroon in February 2000, through the purchase of Camtel’s cellular telephone branch, Camtel Mobiles, for more than $50 million. In its rivalry with SCM Mobilis, MTN is aiming to offer more extensive coverage, even in rural areas, by building in excess of 100 stations throughout the country. The quality of service and customer relations are central to MTN’s strategy.

Dirk R. Smet CEO of MTN

Availability, reliability and consistency of service are other key factors, says Mr. Smet. “MTN’s reputation throughout Africa is based on the quality and reliability of its network. This dedication to quality encapsulates the ability to make and receive a call anytime, anywhere within the coverage area.”
MTN has ample experience in Africa, beginning in 1994, when it became South Africa’s second licensed mobile operator, before expanding into Swaziland, Uganda, Rwanda, and Cameroon.
Mr. Smet is convinced that the company’s “level of service” and “consistency” will serve it well in Cameroon, in its competition with Mobilis.
MTN, Mr. Smet says, “has put in a lot of investment and a lot of services, and the result is that MTN has benefited in return from the population of Africa with a high number of subscribers.

“As far as Cameroon is concerned, MTN is very novel in its approach,” Mr. Smet continues. “First of all, from a marketing perspective, we have been novel. All of our (advertising) messages use Cameroonian people. There are also a lot of innovations in the organization. There is a participatory style of management rather than an exclusive style of management.”
Mr. Smet, who has substantial experience in the field of telecommunications and was professionally trained at the U.S. company Motorola, is enthusiastic about Cameroon.
Mr. Smet has no hesitation about advising American investors to take a closer look at Cameroon. “There are many possibilities and huge human and natural resources,” he says. The need for investment is also large, but “American companies will benefit from strong African partners. It’s a matter of reading the market.”