MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

Performance PRINCIPAL MOBILE PERFORMANCE INDICATORS

2017

2016

2015

Gross mobile revenue (in MAD millions) Mobile customers (in thousands)

13,335 18,533

14,115 18,375

14,276 18,298

o/w postpaid

1,767

1,729

1,649

Blended ARPU (in MAD/customer/month)

58.0

61.1

62.5

3

— ongoing x4 offer for all top ups fromMADb5 andMultiple TopUp Promotions alternating depending on the competitive situation: x10 top up or x12 top up); – Customers can choose from a wide range of passes: — Pass *1 for texts only, *2 for voice and data, *3 for data only, *4 for international calls (plus other passes for value-added services), *6 for social media access and *8 for data roaming. POSTPAID RATE PLANS Postpaid rate plans are available to Retail, Business and Corporate customers: – The Retail segment has a range of fixed rate plans from MADb59 and unlimited offers from MADb399 — basic “Liberté” plans : comprehensive and affordable plans with domestic and international calls plus data bundles starting at MADb59; — medium and top of the range plans : starting at 11bhours of airtime at MADb159 incl. tax for domestic and international calls (with capping option at MADb23 incl. tax) plus generous data bundles. These plans are also eligible for the Fidelio plan with access to a wide selection of competitively priced handsets, — unlimited plans: unlimited domestic and zoneb1 international calls, unlimited texts and unlimited Internet Mobile depending on the plan, — additional paying options are also available : unlimited paying numbers, internet mobile pass, Double and Triple Top Up in addition to the standard plan, SMS Pass, domestic voice pass and international voice pass to all countries; – concerning the Corporate segment, a range of fixed price plans for free internal calls is available for between 12 and 165bhours of airtilme fromMADb159 per month incl. tax and a range of unlimited offers from MADb399; – the Business segment has offers with free internal calls: intragroup plan with 4bhours airtime from MADb72 per month and Optimis plans from MADb159 per month as well as two unlimited plans fromMADb399 per month offering unlimited Voice and SMS to all domestic operators, international calls and Internet Mobile; – additional offers are also available making it possible to top up when reaching the extragroup ceiling with Jawal top ups that ebenfit from ongoing free calls, the possibility of subscribing to voice and SMS passes and an international pass to all countries. MOBILE INTERNET To guarantee easy browsing for all users of Internet Mobile, Maroc Telecom has rolled out the 4G+ browsing speed at 225 Mb/s for all prepaid and postpaid internet plans. In areas not covered by the 3G+/4G+ network, Maroc Telecom’s GPRS network provides seamless mobile internet access. To continue browsing once the volume ceiling has been reached, for postpaid plans the customers (data+voice) can buy internet top-

Following sharp price drops, Mobile segment revenues in Morocco fell by a moderate 5.5% from2016 levels toMADb13,335bmillion, due to the strict regulatory framework and the development of VoiP uses. Maroc Telecom’s total customer base rose by 0.9% to more than 18.5bmillion customers, driven mainly by strong momentum in the postpaid customer base, which recorded growth of 2.2%. Blended ARPU for 2017 was MADb58.0, down by 5.0%. PREPAID MOBILE SEGMENT Prepaid plans have become more popular thanks to the accessibility of datawith SIMcardpacks andpass credits andpromotions launched by Maroc Telecom on top-ups and calls to boost consumption and customer loyalty. Maroc Telecom’s active prepaid Mobile customer base was slightly up in 2017 (+0.7% vs. 2016) at more than 16.8bmillion customers. POSTPAID MOBILE SEGMENT The Postpaid Mobile customer base rose 2.2% in 2017 to 1.767b thousand customers. This positive change reflects the availability of affordable plans providing easy access to postpaid plans for customers migrating from prepaid mobile. INTERNET MOBILE The prepaid Internet Mobile customer base is currently about 8bmillion with data only being replaced by data + voice. In fact, the data only customer base dropped by 70,000 customers in 2017. Maroc Telecom thus reconfirmed its position as leader in Internet Mobile with a market share of 45.5% art end-Decemberb2017. With the enthusiasm shown by customers for Internt Mobile, the Data pentration rate reached 51% and Data usage increased by 44% thanks to 4G customers consuming 2.3 times more than 3G customers. Revenue from Internet Mobile grewby 53% thus enabling continued solid revenue growth from outgoing services of 2%. Mobile offers and services PREPAID PLANS Maroc Telecom markets its prepaid plans under the Jawal brand. Prepaid plans are aimed primarily at the consumer market, which demands affordable SIM-only offers with frequent promotions on top-ups and calls. Maroc Telecom’s prepaid plans are sold in the form of packages (handset and SIM card) and SIM card packs (SIM only) with a single price for calls to all national operators. (MADb0.07 (incl. tax) per second and MADb0.96 (incl. tax) per SMS). International call and text rates vary depending on the country and international pricing zone. – Pay as you go plans are continuously promoted by bonuses (depending on the value of the top up and the promotional period):

73

MAROC TELECOM ____ 2017 Registration Document