MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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DESCRIPTION OF THE GROUP, BUSINESS ACTIVITIES, LEGAL AND ARBITRATION PROCEEDINGS Business activities

3.2 _ Business activities 3.2.1 MOROCCO GLOBAL OPERATING ENVIRONMENT The introduction of minimum voice and data rates under the regulatory framework put in place by the ANRT since 2016 stabilized prices after several years of falling tariffs. In an unrelentingly competitive market and a more stringent regulatory setting the per- minute rate for outgoing mobile calls was MAD 0.24 at end ofb2017. By dint of its innovative products and excellent service quality, Maroc Telecom confirmed its leading position in all market segments in 2017. However, Maroc Telecom once again confirmed its leadership in all market segments, thanks to a policy of competitive offers in mobile, fixed-line and internet, added value in its offer and constantly improving service quality. Despite the 20% premium on top of the minimum rate imposed by theANRT onMaroc Telecom for its Mobile Voice services, theGroup had a 42% share of themobile voicemarket at end-Septemberb2017. This is in comparison with 35% for Meditel and 23% for Inwi. Maroc Telecom’s share of the Internet market was 49% compared with 23% for Inwi and 28% for Meditel. In the prepaid segment Maroc Telecom added new x12 promotional offer for calls and 4G+ internet starting at 5 Dirham. In 2017 the Multiple Top-up promotional offer included bonus data as well as domestic and international calls. Maroc Telecom also made international calls more affordable through its prepaid and postpaid mobile products by lowering the cost of calling big international cities and including all international destinations in its Pass International *4 offer. The Group also reworked its prepaid products by making the Jawal Passes permanent, launching new promotions, introducing x10 and x12 multiple top-ups starting at 50 Dirham, launching promotional offers on a frequent basis and raising data volumes on internet passes. In the postpaid segment Maroc Telecom launched a new 59 Dirham rolling plan with 3GB of data, 3 hours of airtime and 300 SMS. In this way the Company is increasing access to postpaid and encouraging migration from prepaid. Moreover, to support its customers’ shift toward data Maroc Telecom launched a new data-friendly postpaid package with 25GB of data and 10 hours of airtime for 199 Dirham alongside its existing call- friendly packagewith 20 hours of airtime and 6GB of data all thewhile adjusting its range so as to comply with regulations by withdrawing its flat-rate Liberté plan and replacing it with a data-focused plan and a call-focused plan. The postpaid line was also expanded with a call-data balanced flat-rate plan at 159 Dirham. Turning tomobile internet,in2017MarocTelecom’smobilenetworkwas rated the fastest in the country for the second year in a row. Based on the globally recognized Speedtest by the Ookla internet performance testing website, these results are the fruit of sustained investment to highlight 4G+ technology with download speeds of up to 225 Mb/s. The spread of 4G was generalized through a simplified customer procedure (no SIM swap and no additional fees) and by promoting 4G+ technology, the most advanced version of fourth generation mobile.The Fixed-line segment in 2017 saw the accelerated technical and marketing roll-out of fiber optic packages to Business and Residential customers with download speeds of up to 200 Mb/s starting at 500 Dirham a month (incl. tax). Finally, theADSL segment was revampedwith the commercial launch inOctoberb2017 of the 12Mb/s Double Play package for 249 Dirham a month (incl. tax) which appealed to many customers.

COMPETITIVE ENVIRONMENT AND EXISTING OPERATORS At Decemberb31, 2017, a total of 27 telecommunications licenses had been awarded in Morocco. The telecommunications market by operator and type of service is summarized below:

Number of licenses

Technology Fixed-line

Operator

3

Maroc Telecom Medi Telecom INWI Maroc Telecom Medi Telecom INWI Maroc Telecom Medi Telecom INWI Maroc Telecom Medi Telecom INWI

Mobile (2G)

3

Mobile (3G)

3

Mobile (4G)

3

GMPCS

6

Thuraya Maghreb Soremar OrbcommMaghreb Global Star North Africa European Datacomm Maghreb Al Hourria Telecom Spacecom Cimecom (Nortis) Gulfsat Maroc Telecom

VSAT

6

Maroc Telecom Wana Corporate

Société d’Aménagement et de Développement Vert (SADV)

3RP

3

Cires Telecom Moratel

Société d’Aménagement et de Développement Vert (SADV) Source: ANRT and decrees for VSAT licenses and 3RP granted in 2015. Maroc Telecom’s principal competitors are as follows: – the operator Medi Telecom (“Meditel”), which has held a mobile license since Augustb 1999, was renamed Orange Maroc on Decemberb8, 2016; Orange Maroc is held by the Orange Group (49%),the FinanceComGroup (25.5%) and theCDGGroup (25.5%); – Wana, in which SNI Group holds a 69% stake, with the remaining 31%held by the consortiumcomposed of Al Ajial Investment Fund Holding and Zain Telecommunications Group.

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MAROC TELECOM ____ 2017 Registration Document