Authorities in Cameroon Impose $4.6 Million in Penalties on MTN and Orange for Telecom Shortcomings
In a move aimed at upholding service quality within Cameroon's digital economy, the Cameroon Telecommunications Regulatory Board (ART) has imposed significant fines on MTN Cameroon and Orange Cameroun for poor service delivery and non-compliance with regulatory standards.
The fines, totaling approximately $4.6 million USD (about 2.6 billion CFA francs), were imposed due to deficiencies identified during inspections conducted in April and May 2024. Both operators were found to have failed to meet minimum coverage and service quality requirements in major cities and key transport corridors, such as Yaoundé, Douala, and others.
MTN Cameroon was fined around 1 billion CFA francs (~$1.8 million) for poor network performance, inadequate network coverage, unreliable voice and data services, frequent outages, and inconsistent network availability. Orange Cameroun received around 1.4 billion CFA francs (~$2.5 million) for similar service delivery issues and an additional 200 million CFA francs (~$357,600) for violations related to pricing transparency and faulty opt-out mechanisms of value-added services (VAS). This latter issue has led to customer complaints about unauthorized charges and difficulties unsubscribing.
Officials have warned of possible additional penalties for continued non-compliance and have announced plans to intensify oversight of service providers. The telecom regulator is under pressure to ensure that both operators improve network coverage, service quality, and pricing transparency, as these shortcomings have been linked to hindering Cameroon’s digital development and harming consumer experience and business productivity.
MTN Cameroon has also faced legal challenges unrelated directly to service delivery, involving asset freezes linked to a legal dispute with a local business mogul. However, MTN recently won a court appeal to release seized assets, helping to stabilize its operations.
The fines serve as a stark reminder that telecom providers must meet their contractual obligations to consumers and adhere to regulatory standards. Widespread issues such as unreliable voice and data services, frequent outages, and uneven network availability have been reported, causing frustration among the public. The regulators' actions aim to reinforce expectations that telecom providers prioritize service quality and consumer protection.
In response to the fines, both operators have pledged to invest in infrastructure improvements and customer service initiatives to address the identified issues and improve overall service quality. The Cameroonian telecommunications authority has also announced plans to enhance customer complaint mechanisms to facilitate resolution of issues more effectively.
Sources: [1] Cameroon Telecommunications Regulatory Board (ART) press release, May 2024. [2] Ministry of Posts and Telecommunications press release, May 2024. [3] MTN Cameroon press release, June 2024.
The fines, amounting to approximately $4.6 million USD, were imposed on MTN Cameroon and Orange Cameroun due to deficiencies in service delivery and non-compliance with regulatory standards, specifically pointed out in the fines are issues in finance, such as inconsistent network availability, unreliable voice and data services, and violations related to pricing transparency and faulty opt-out mechanisms, that have impacted the industry in Cameroon.
Both operators, in response to the fines, have declared investments in improvements in infrastructure and customer service to rectify the issues and enhance service quality, which directly addresses the financial penalties and poses a step towards adhering to industry standards and maintaining customer satisfaction.
