MTN, Orange in renegotiation with govt over license

Licences for mobile telephony in renegotiation Orange and MTN have been in discussion with the Government in Yaoundé at the Ministry of Posts and Telecommunications for some time now. They have been debating on the billions that these companies have to pay to the Treasury to renew their operating licenses as per their contracts signed 15 years ago.

MTN Cameroon which launched operations in February 15, 2000 accounts for a turnover of 211 billion F as of 2013. As a subsidiary of South African MTN, it obtained a Camtel Mobile licence to operate in Cameroon and is now counted among the first companies in the country. It can now boast of 62.3% of market share and 90.5% of coverage of the population to September 30, 2014.

The license for the operation of cellular network from July 7, 1999 given to Orange Cameroon has also operated for 15 years. Now, Orange Cameroon ranks (in echoing the assessment of the world body GSMA) second on the mobile market with 41% of market share.

As per the impressive performance displayed by the telcos, it is obvious how the two telcos are determined to remain giants in the market against the other competitors.

Until now, each of them is looking for negotiations which so far has not met any major setbacks except for the price which was not much, fifteen years earlier when the market was practically a fallow field.

Production however accounts for 500 billion turnover for the telecommunications sector according to the regulatory agency. Negotiation are ongoing and in two or three weeks, the first results of the renegotiation should be out.