MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

3.2.1.1 MOBILE TELEPHONY

PREPAID MOBILE SEGMENT Maroc Telecom is continuing to promote call and data bundles with its Jawal Passes. To attract new customers, Maroc Telecom has priced the Jawal card at MADb30 for 1bhour of domestic airtime, 1GB of data, a credit of MADb50 for domestic and international calls and a 150MB MT Talk pass. A Bonus Smartphone Pack promotional offer to encourage customers to buy smartphones and prepaid airtime was also launched. Market share in the mobile prepaid telephony market overbthebpast threebyears

Market and competitive environment In a mature market characterized by intense competition and a tougher regulatory environment, Mobile telephony in Morocco features generous call plans, repeat and aggressive promotional offers, andmore targetedmarketing efforts to build customer loyalty, increase usage and win new customers. To boost growth in this segment, call plans are often combined with data, whose usage is growing rapidly thanks to the accessibility of smartphones and the introduction of mobile broadband. YEARS IN WHICH MOBILE TECHNOLOGIES WERE LAUNCHED ON THE MARKET BY THE THREE OPERATORS

Market share

2017

2016

2015

Maroc Telecom Orange Maroc

41.27% 43.20% 41.40% 35.28% 33.29% 32.22% 23.45% 23.51% 26.38%

Maroc Telecom

Orange Maroc

INWI

INWI 2010 2010 2010 2008 2015 2017

GSM 2G

1994 2002 2004 2008 2015 2017

2000 2004 2006 2008 2015

Source: ANRT. POSTPAID MOBILE SEGMENT

GPRS

Roaming MMS andbGPRS

Maroc Telecom is continuing to focus on customer loyalty by offering a full range of low-cost plans combining free data and voice services, as well as an unlimited plan offering customers everything they need at highly competitive rates. Market share in themobile postpaid telephony marketbover thebpast threeb years

3G 4G

VSAT

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MOBILE MARKET SHARE OVER THE PAST THREE YEARS

Market share

2017

2016

2015

Market share

2017

2016

2015

Maroc Telecom Orange Maroc

52.76% 56.93% 58.82% 28.74% 26.44% 26.87% 18.50% 16.63% 14.31%.

Maroc Telecom Orange Maroc

42.13% 44.18% 42.48% 34.79% 32.80% 31.89%

INWI

INWI 23.08% 23.02% 25.63% Source: ANRT. Despite the challenging competitive environment, Maroc Telecom has remained the market leader in the Mobile segment. At end- 2017 Maroc Telecom had a market share of 42.13%, compared with 34.79% for Orange Maroc and 23.08% for Inwi.

Source: ANRT. In 2017, a new rolling plan was launched at MADb59 with 3GB of data, 3bhours of airtime and 300 SMS, targeting Residential customers. Postpaid plans were enhanced with bonus data to meet the needs of customers and offer competitive products. In the B2B segment basic and medium plans were readjusted as follows: – the business & corporate 8bhour plan for MADb99 incl. tax was bumped up to 10bhours of airtime plus 2GB of data plus intragroup; – a new data-savvy plan targeting the corporate market with 12bhours of airtime, 12GB of data and intragroup for MADb159 incl. tax was launched; – the corporate Mobile Intra Only plan with an initial 500MB of data plus intragroup at MADb72 (incl. tax) was bumped up to 2GB of data, 4bhours of airtime and intragroup. In the 3G+ and 4G+ Internet segment Maroc Telecom continued its strategy of acquiring and retaining customers through higher data allowances with the launch of a new 7GB data plan priced at MADb59.

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MAROC TELECOM ____ 2017 Registration Document