MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

PRINCIPAL PERFORMANCE INDICATORS FOR THE MOROCCAN TELECOMMUNICATIONS SECTOR CHANGE IN MOBILE, FIXED-LINE (INCL. RESTRICTED MOBILITY), AND INTERNET PENETRATION RATES IN MOROCCO OVER THE 2010-2017 PERIOD

Fixed-line telephony segment (including restricted mobility) FIXED-LINE CUSTOMER BASE IN MOROCCO OVER THE 2010-2017 PERIOD (inbmillions of customers)

3.7

3.6

3.3

2.9

2.5

3

2.2

2.1

2.0

2010

2011

2012

2013

2014

2015

2016

2017

2010

2011

2012 2013 2014

2015

2016

2017

Mobile

Fixed-line incl. restricted mobility

Internet

Until 2010, the Fixed-line market enjoyed steady growth from the introduction of restricted-mobility offers. Since 2010, the Fixed-line market has been in steady decline owing to deep price cuts in the Mobile segment. However, as a result of the success of ADSL plans, particularly Double Play, the number of fixed wirelines increased in 2017 for the seventh consecutivebyear. Internet segment INTERNET CUSTOMER BASE IN MOROCCO OVER THE 2010-2017 PERIOD (in thousands of customers)

The mobile penetration rate reached 126% at the end of Septemberb2017.The change is due to investments made to expand coverage and enhanced packages. The Fixed-line penetration rate is currently 6%, down as a result of the decrease in the customer base (limited mobility accounted for by the ANRT in the fixed-line base). The Internet market continued its strong growth driven by mobile internet and theADSLDouble Play package with the penetration rate going from 6% in 2010 to 64% at the end of 2017.

CUSTOMER BASE TRENDS

22.2

Mobile telephony segment CHANGE IN THE MOBILE CUSTOMER BASE IN MOROCCO FOR THE 2010-2017 PERIOD (in millions of customers)

17.1

14.5

44

44

43

42

42

9.9

39

20.8

37

15.9

32

5.8

13.3

3.9

8.9

3.2

1.9

4.9

3.3 0.7

2.6 0.6

1.4 0.5

0.8

0.9

1.1

1.2

1.4

2010

2011

2012

2013

2014

2015

2016

2017

ADSL (including low speed and links)

3G/4G

Growth in the Internet market has gathered pace since 2008, mainly because of the introduction of 3G/4G Internet offers that expand internet access at increasingly lower prices, as well as the launch in 2012 of ADSL Double Play plans to revive the fixed-line and Internet market. At the end of 2017, the Internet customer base comprised 22.2 million customers of which 20.8 million customers around 94% were mobile internet customers.

2010

2011

2012

2013

2014

2015

2016

2017

The Mobile telephony market is dominated by prepaid customers, who represent 93% of the total customer base. Atbend-Septemberb2017, the total mobile customer base comprised 44bmillion customers.

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MAROC TELECOM ____ 2017 Registration Document