Cameroon’s regulator fines MTN and Orange a combined $4.6m for poor service delivery

The Cameroon Telecommunications Regulatory Board (TRB) has fined two of the country’s major telecom operators, MTN Cameroon and Orange Cameroon, a combined $4.6 million (2.6 billion francs CFA) for violation of their coverage and quality of service obligations as outlined in their licenses.

According to a public disclosure by the country’s telecom regulator on Monday, it explained that the development marks a significant step towards the implementation of service quality standards and protecting consumer rights in the rapidly evolving digital sector.

Over the past months, TRB has vowed to crack down on major players such as MTN Cameroon, Orange Cameroon, and state-owned Camtel, as the operators have faced scrutiny for issues ranging from inadequate network coverage to irregular SIM card registration practices.

The regulator’s Director General, Philémon Zoo Zame, revealed that the sanctions stem from a series of inspections carried out by TRB agents between April and May 2024. The inspections were held across significant national corridors such as Yaounde, Mbalmayo, Ebolowa, Kyé-Ossi and Yaounde, Mbalmayo, Ebolowa, Mintom, Ntam, as well as in the cities of Yaounde and Douala. He also noted that investigations were conducted at both telcos’ headquarters in Douala, with a focus on pricing practices,

Following the inspection, TRB discovered that both MTN Cameroon and Orange Cameroon failed to achieve essential contractual commitments while their network coverage was flagged to be below the required thresholds in several key regions.

As a result of the findings, the regulator imposed a $2.5 million fine (1.4 billion francs CFA) on Orange Cameroon and $1.8 million (1 billion francs) on MTN Cameroon for failing to meet network coverage and service quality obligations. 

“By taking this action, TRB is sending a strong message to mobile network operators that laxity in meeting regulatory obligations will not be tolerated,” Zame said, as cited by ITWEB Africa.

For Orange Cameroon, an additional $357,600 (200 million francs CFA) was imposed on Orange for non-compliance with pricing regulations, while additional violations were uncovered relating to the malfunctioning of opt-out codes for value-added services. The communications regulator also cited pricing irregularities, further raising concerns about transparency and fairness.

Zame stressed that the development is backed by the need to ensure consistent access to quality telecom services, which is not only a regulatory requirement but a development imperative.

Also Read: Cameroon’s telecoms regulatory board launches $52m debt recovery quest.

The fines follow a similar direction to two years ago. In 2023, the TRB imposed fines totalling 6 billion CFA francs ($9.7 million) on four telecom firms for persistent network coverage and quality-of-service failures. Orange Cameroon bore the heaviest penalty at $3.5 million, followed by Nexttel ($2.4 million), MTN Cameroon ($2.2 million), and Camtel ($1.2 million).

Cameroon telecom regulator’s debt recovery plan

While the crackdown on two of the country’s major telecom operators signals a commitment to enforcing operational regulations and quality service delivery, it comes in light of the regulator’s launch of a $52 million debt recovery.

In April, TRP revealed plans to launch a robust debt recovery operation for over $52 million in unpaid license fees and financial penalties from mobile network operators. The strategic move, described as a decisive step to enforce compliance with regulatory standards, represents the government’s broader push to foster accountability and competitiveness in the telecom sector.

The outstanding debts stem from years of unpaid licence fees and penalties imposed for various regulatory breaches. The official, speaking on condition of anonymity, emphasised that the recovery effort is part of a strategic initiative to ensure operators adhere to market rules and fulfil their licensing obligations.

The debt recovery operation also aligns with the government’s broader efforts to strengthen governance in the digital economy. President Paul Biya’s administration has prioritised expanding digital infrastructure to support Cameroon’s Vision 2035 development agenda, which aims to transform the country into an emerging economy. 

A 2024 report by the African Telecommunications Union shows that Cameroon ranks below regional peers like Nigeria and Ghana in mobile network reliability, despite having one of the highest mobile penetration rates in Central Africa, at 87%. With this, the government is pushed for increased investment in broadband networks and rural connectivity, while non-compliance with regulations has been hindering the plans.