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March 14, 2007

Mobile Phone Call-Boxes Burning the Streets of Yaounde

By Akere-Maimo in Yaounde


Calltel

The advent of the mobile phone telecommunications has ushered ‘call box’ business fashionable in most Cameroonian towns and cities. Call-box units flank almost all intersections in the neighbourhoods and streets. In rural areas, owners of local provision stores and beer parlours have suddenly entered the business, making communication possible between a desperate old mother in the village and her grandson in the far-off “whiteman country”.

It is commonplace to find many subscribers of MTN, Orange or CAMTEL frequent call box units thanks to the immediate services they render to their clients. It is not strange to hear people say that more than 90% of mobile phone business in Cameroon greatly depends on the activities of the roadside call-box units. Thousands and thousands are employed in the business, churning millions and millions of FCFA day by day for the fast-growing mobile telecommunication industry. Strolling from Carrefour ENAM to Carrefour Obili, you would count about 85 call-box units dotted along the sidewalks. In the student residential area at Bonas that has practically been transformed into Yaounde’s Dubai, the figure swells to 100 with university students constituting a majority of the call box agents. It is worthy of note that most of these agents are of grassfield Anglophone and Bamileke decent.


The use of personal handsets to do calls is fast phasing out due to the huge cost incurred. Calling at the call-box unit is far cheaper with the call per unit FCFA dropping to 100 FCFA for 40 seconds maximum and 125 FCFA 59 seconds maximum. With the CTPhone craze the rates now stand at 75 FCFA for a maximum of 30 seconds if you call with the CAMTEL service. Transfer of credits is also en vogue as many callers constantly demand for these services not just for the wanton bonuses, but for the simple fact that transfers are easier to make and less time-consuming than composing a cumbersome 14-digit number to top your phone.


The picture on the ground

The Entrepreneur in its constant quest for information mounted an investigation to determine the extent of the mobile phone business in the capital city. We accosted 21-year-old Hans, helping his mother operate their call box business at Lac Acacia and he said that it was the only way he could occupy himself since he did not make it in his 2006 GCE A/L. He added that he intends to raise money from the business, in order to go back to school next year. As to how much he earns per day, he sweated to figure it out. “Whenever we buy credits for 30,000 FCFA from CAMTEL, we can be given a bonus of 15,000 FCFA. Same with MTN, and when we buy airtime for 23,000 FCFA they give us for 30,000 FCFA. For those who are regular clients, they are given an extra of 15,000 FCFA…” Hans declared. In a week, the 20,000 FCFA daily return amounts to 140,000 FCFA and this may reach 560,000 FCFA per month for returns, if the business is properly managed.


However, he feels a little worried, as the business does not produce the intended turnover as previewed. “In fact, when customers make long calls for 900 FCFA the amount boils down to 750 FCFA and we are the ones who bear the brunt. It is only when they call for 150 FCFA that we can be able to cover the gap of a 75 FCFA profit,” he declared.


Wholesaler, commission…millionaire

As for Serge operating his own business strategically at Lycée Biyem-Assi, it was a great leap he made to move from his part-time job as a teacher to a call-box agent. He has no regrets at all as his present job pays trice the amount of what he used to receive offering catch-up classes in Maths. His present job is less stressful and less demanding as he is the one bossing his own business with no pressure from anybody.


“I wanted to gain access to money and so the call box was the only alternative. If you compare the business I am doing now with the private classes I was offering before…with time I have come to realise that the call box business pays more than that. As a student it was not easy for me to meet up with my needs. As a Maths student, there was no way for me apart from teaching. There were many families who needed my services, but the contract very much depended on the contacts I made. The highest amount I ever received was 35,000 FCFA per month for 3 students. With this I was supposed to put in 3 hours to teach for 4 days per week. That is 12 hours per week…Presently, I can boast of not less than 100, 000 FCFA a month,” Serge voiced out. This is an amount some civil servants cannot boast of at the end of the month.


Talking about his business prospects, he testified without any fear of contradiction or prejudice that only way to survive in call box business is “to pull in as a heavyweight”. That is, like a wholesaler. He went ahead to recount stories of his friends, who are already having huge accounts operating as wholesalers. A story is told of a certain Diane who runs about 40 call box units in Bonamousadi, Yaounde and whose monthly account is estimated between 800,000FCFA to a million FCFA. As Serge puts it your expansion in the business very much depends on your customer base, your bargaining power with the dealers – all of which would determine what you would receive as commission. The more you sell, the more you win the market, the more your bargaining power, the more your commission and the more your chances of becoming a millionaire. The commission at times stands at 2-3% of the overall sales. And for those who have direct lines with the companies it is a different story all together.


Little tips

Well, the call box does not go without its own mixed blessings. There is stiff competition in the market not only exhibited among the three giant mobile phone operators, but by the numerous call box units. Instances of theft are reported and technical errors that could render a life-long investment to nothing relative to transfer of credits. So, like every other business there is a serious element of risk. More and more, the taxation officers have discovered that call box business is lucrative and instead of organising the sector, they have artfully calved out a means to extort the poor businessmen. Operating a call box business today in Cameroon is simple. All you need is a good kiosk, an umbrella for somebody who has a small table and chair. Your positioning is another essential element, as it will greatly determine your access to clients. To serve your clients effectively well, you certainly need more than just one phone.  You also need stickers and posters to beatify your kiosk and make it attractive. Another very important factor is the business-customer relationship. You must treat your customers with a broad smile so as to encourage them to call around again. For a novice in the business, you must exercise some patience, research and strategise in order to win your own share of the market.

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