MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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FINANCIAL REPORT Overview

MOBILE

Unit

2017

2016

Changes +0.9%

Customer baseb (a)

(000) (000) (000) (000)

18,533 16,766

18,375 16,645

Prepaid Postpaid

+0.7% +2.2%

1,767 9,481

1,729 7,844

+20.9%

including internet 3G/4G+b (b)

ARPUb (c) -5.0% (a) The active customer base consists of prepaid customers who have made or received a voice call (excluding ERPT or Call-Center calls) or received an SMS/MMS or used data services (excluding ERPT services) during the past three months, and postpaid customers who have not terminated their agreements. (b) The active customer base for 3G and 4G+ Mobile internet includes holders of a postpaid subscription agreement (with or without a voice offer) and holders of a prepaid internet subscription agreement who have made at least one top-up during the past three months or whose top-up is still valid and who have used the service during that period. (c) ARPU is defined as revenues (generated by inbound and outbound calls and by data services) net of promotional offers, excluding roaming and equipment sales, divided by the average customer base for the period. In this instance, blended ARPU covers both the prepaid and postpaid segments. (MAD/month) 58.0 61.1

As of 31bDecemberb2017, the Mobile customer baseb (1) numbered 18.5 million customers, up 0.9% year-on-year, thanks to the 2.2% rise in postpaid customers and the 0.7% rise in prepaid customers. Mobile revenues amounted to MAD 13,335 million, down 5.5% from 2016, suffering from the impact of deregulation of IP telephony since 2016 and the asymmetry of Mobile call terminations since Marchb2017. Outgoing revenues increased by 1.9% toMAD 10,511million, driven by the sharp growth in Mobile data (+53%), which more than offset the decrease in Voice.

Mobile Data continues to be very popular.TheMobile data customer base increased by 21% and its traffic by 78%, supported mainly by the extension of 4G+ network which covered 93% of the population at December-end 2017. Blended 2017 ARPUb (2) amounted to MAD 58, down by 5.0% compared to the same period in 2016 due to the decline in incoming revenues.

FIXED LINE AND INTERNET

Unit

2017

2016

Changes

Fixed lines

(000) (000)

1,725 1,363

1,640 1,241

+5.2%

Broadband accessb (a) +9.8% (a) The broadband customer base includes ADSL and FTTH (fiber optic) access and leased lines in Morocco, as well as the CDMA customer base for the historical subsidiaries.

The Fixed-line customer base was 1.7 million lines at year-end 2017, up by a sustained 5.2%, thanks to the ADSL services. The broadband customer base increased by 9.8% to nearly reach 1.4 million subscribers, driven by the enhancement of Double-Play packages and success of FTTH offers.

Fixed-line and internet posted MAD 8,962 million in revenues, up 1.5% vs. 2016 driven by the growth in customer base.

(1) The active customer base consists of prepaid customers who have made or received a voice call (excluding ERPT or Call-Center calls) or received an SMS/ MMS or used data services (excluding ERPT services) during the past three months, and postpaid customers who have not terminated their agreements. (2) ARPU is defined as revenues (generated by inbound and outbound calls and by data services) net of promotional offers, excluding roaming and equipment sales, divided by the average customer base for the period. In this instance, blended ARPU covers both the prepaid and postpaid segments.

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MAROC TELECOM ____ 2017 Registration Document