Mobile telephone companies face tough competition

The mobile operator MTN Cameroon succeeded in getting government to renew its licence for a period of 15 years, March 11, 2015.

The previous convention of concession for the establishment and operation of mobile electronic communications network, obtained in 2000, expired February 15, 2015.

Almost two months back, MTN Cameroon and the Government of the Republic had entered into negotiations for the renewal, with likely disagreements over the cost of the licence.

This was "a long and difficult period of negotiation with each of the parties seeking to defend its interests", the Minister of Posts and Telecommunications (Minpostel) admitted yesterday during the official ceremony of renewal of the licence for MTN Cameroon.

Jean-Pierre Biyiti bi Essam noted that "eventually all is well that ends well, as we are gathered here, to celebrate the happy ending of the negotiations.

Finally, the renewal price was set at 75 billion, payable in accordance with a schedule that extends over six months, beginning March 11, 2015. The second deadline will be released April 11 and last September 11.

That been said, before the signature of the new licence, the ceremony began with the presentation of the cheque for 75 billion by MTN Cameroon to the Government, represented by five of its members, including the Minpostel and the Minister of Finance (Minfi).

For MTN Cameroon, they were represented by the president of the Governing Council (CAC) Colin E. Emily and Executive Director of the company, Karl O. Toriola.

He claims that, "the new licence gives, in addition, the ability to leverage new technologies adapted to the global development of telecommunications, including 3G and 4G". For him, "this concession agreement will bring more modernity, wealth and progress to the people of Cameroon, where we have 10 million subscribers."

With the new license in their pocket, MTN Cameroon intends to make efforts necessary for Cameroon to take advantage of the 3G/4G. By realizing "the investment of 4,000 billion over the period of operation of the new license announced Karl O. Toriola.

It ensures that the 3G will be available in 16 cities in the first year of operation. Subsequently, it will be gradually extended to all cities in Cameroon. "The goal is to cover at least 75% of the population by 2018".

3G should lead to the creation of one thousand direct jobs and hundreds of thousands of indirect jobs in the coming years. Eventually, it could represent 6% of the revenue of the State.