• Audit report says Camtel uses just 16% of available cable capacity.
• Full use could generate up to CFA 13.6 billion ($24.2 million) annually.
• High costs, weak internet penetration and Europe-oriented traffic limit uptake.

Cameroon’s state-owned telecom operator Camtel could generate as much as CFA13.6 billion ($24.2 million) in yearly revenue if it fully exploits the capacity of its four subsea cables, according to an audit report by the Supreme Court’s Audit Chamber.

The June 2024 report, cited by Business in Cameroun, found that Camtel currently uses only 16% of total capacity. Utilization rates stand at 6% for the South Atlantic Inter Link (SAIL), 57% for the West African Submarine Cable (WACS), 29% for the SAT-3/South Africa Far East system, and 92% for the Nigeria-Cameroon Submarine Cable System (NCSCS).

The audit projected potential revenues of CFA2.1 billion from WACS, CFA9.3 billion from SAT-3 and CFA2.2 billion from NCSCS, based on earlier 2014 estimates. No projection was provided for SAIL.

Camtel blamed the underuse on weak internet penetration in Central Africa, contrary to initial expectations of fast-growing demand for bandwidth. The operator also pointed to the fact that 83% of African internet traffic flows to Europe, limiting the value of the SAIL link, as well as high transit and termination costs in Cameroon that keep retail prices uncompetitive.

The four cables, which cost nearly CFA100 billion to install, have long faced profitability concerns. In 2021, Camtel signed a memorandum of understanding with MTN GlobalConnect, now Bayobab, to jointly commercialize the infrastructure, though no details on the impact of that partnership have been disclosed. At the time, usage stood at 15%.

Maximizing cable utilization could strengthen Cameroon’s national bandwidth supply, improve services for operators like MTN and Orange, and provide extra capacity to landlocked neighbors such as Chad. However, analysts note that high transit fees, a deteriorating domestic transport network, weak commercial offers and the need for a revised business model remain key challenges.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange Jason Quenum