Through this document, ART indicates the economic dynamics, the performance of the different segments and the challenges that accompany the digital transformation of the country.
The Telecommunications Regulatory Agency (ART) has released the 2024 Annual Observatory of the Electronic Communications Market in Cameroon, a reference document that provides a comprehensive overview of the field of electronic communications. Through this document, ART indicates the economic dynamics, the performance of the different segments and the challenges that accompany the digital transformation of the country.
The year 2024 is distinguished by a notable increase in the sector’s contribution to the national economy. Investments jumped by more than 35%, reaching nearly 194.5 billion CFA francs, mainly carried by concessionary operators. Overall revenue crossed the 1,022 billion CFA franc mark, a growth of 18%, largely driven by the rise of mobile financial services, whose revenues more than doubled. This vitality is also reflected in an increase in direct employment, while the sector’s share of national GDP has increased to 3.16%, confirming its role as an economic pillar.
The mobile segment remains dominant. With more than 31.5 million active subscriptions, it concentrates most of the usage, even if there is a drop in voice traffic and a marked drop in SMS, as a result of the migration to instant messaging applications. Mobile revenues, up nearly 12%, reached 631 billion CFA francs, and competition between operators is tightening, with Orange Cameroon now ahead of MTN Cameroon in market share. This high market concentration, measured by a high Herfindahl-Hirschman index, calls into question the need to preserve a balanced competitive environment.
Fixed lines, on the other hand, continue to be marginalized. Despite a spectacular increase in voice traffic, wired subscriptions are declining and teledensity remains extremely low. Revenues are stagnating, confirming the difficulty of this segment to compete with the dynamics of mobile. On the other hand, the Internet continues to expand. More than 15 million subscriptions were recorded, 99% of which were dominated by mobile, and data traffic increased by 26%, driven by ever-increasing consumption. Internet revenues increased by nearly 19%, but traditional service providers saw their revenues decline, a sign of unfavourable competition with mobile operators.
Passive infrastructure is experiencing moderate growth, with more than 4,700 sites listed, largely dominated by IHS, which captures most of the revenues. Value-added services, on the other hand, saw a significant decline, while mobile financial services continued to rise at a rapid pace, with more than 11 million active subscribers and revenues up 146%. Transport, mainly provided by the incumbent operator CAMTEL, benefits from the growing demand for bandwidth and relies on a national fibre optic network of nearly 12,000 km, reinforced by several submarine cable landing points.
Beyond performance, the Observatory highlights persistent challenges. The concentration of the mobile market limits competition, the marginalisation of fixed lines calls for a repositioning strategy, and the lack of complete data from certain operators weakens the transparency of sector monitoring. Retail prices remain rigid despite falling interconnection costs, and internet service providers are struggling to compete with the power of mobile operators.
Nevertheless, the outlook remains promising. Digitalization and mobile financial services appear to be the strongest growth drivers. The Agency intends to continue its role as a guarantor of market balance by stimulating competition, strengthening data collection and ensuring that cost reductions effectively benefit consumers. Public authorities are called upon to support less dynamic segments, while operators will have to diversify their offerings towards innovative services such as the cloud, the Internet of Things or 5G.
Thus, the 2024 Annual Observatory reveals a sector in full transformation, driven by the momentum of digital technology but confronted with structural imbalances. The Telecommunications Regulatory Agency, faithful to its regulatory mission, is committed to supporting this transformation so that telecommunications contribute more to the inclusive and sustainable development of Cameroon.
