MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

2017 also saw the application of new rates for RoamingOut for which the rates for all product segments were revised downwardb(outgoing calls and texts, incoming calls and Data), as well as a change of Zoning. This review went hand in hand with two cycles of Roaming promotions (Umrah & Hajj /Summer and year-end 2017). Pilgrims once again benefited from free incoming calls on all the Saudi networks in 2017.

Handset plans Jawal prepaid packs

A wide variety of Jawal prepaid packs are available at different prices. Maroc Telecom strives to offer customers the latest handsets and cutting-edge functionalities, as well as the development of smartphone equipment. In 2017,Maroc Telecomoffered Jawal packs with smartphones from MADb449 (incl. tax). Postpaid packs The postpaid-customer acquisition policy is based on the attractiveness of the call plan, the variety of associated products and services, and the range of handsets on offer. Cobranded offers create momentum for handset launches and upgrades, often simultaneous with their international campaigns, by offering customers new products with state-of-the-art design and cutting-edge technologies. Maroc Telecom offers a diverse range of packs. In 2017 Maroc Telecom continued to increase the uptake of smartphones (including 4G) by selling competitively priced handsets and promotional offers on packs. CUSTOMER LOYALTY Customer loyalty is one of Maroc Telecom’s strategic strengths which has helped it prepare for the advent of competition. Fidelio was the firstbpoints-based loyalty program introduced in Morocco. It allows Maroc Telecom’s postpaid customers to accumulate points based on usage (customers earn one Fidelio point for every MADb10 (excl. tax) billed) and to receive benefits in the form of free or discounted handsets or free call time, texts and free Data Passes. The Fidelio 24-month plan allows customers to renew their contracts and change their handsets for even less. Maroc Telecom’s Gold Club offers customers exclusive deals and customized benefits throughout the year such as special private offers, previews, season’s greetings and regular invitations to cultural, sporting and other events. Club members are longstanding mobile postpaid customers who consume a certain amount of airtime and data. INTERNATIONAL ACTIVITIES International roaming In 2017, MarocbTelecom had 641 Roaming agreements, signed with partner operators based in 227bdestinations and/or countries. data roaming, actually 4G Roaming, is available incoming and outgoing with the main partners, ie. 147boperators in 82 destinations and/or countries (including 81bdestinations and/or countries for Roaming Out). Forb3G Roaming, MarocbTelecom has entered into agreements with 446 operators in 196bdestinations and/or countries (including 195 destinations and/or countries for 3GOut). For 2.5GRoaming and GPRS/ MMS Roaming, MarocbTelecom has entered into agreements with 471boperators in 194 destinations and/or countries (including 196bdestinations and/or countries for GPRS Out). Prepaid Roaming and prepaid data roaming are also available: 189bdestinations and/ or countries thanks to agreements with 349boperators (including 188 destinations and/or countries for Roaming Out) for the first and 171 destinations and/or countries with 276 operators for prepaid data roaming. Services for sending international SMS andMMS are also available in over 213 destinations and/or countries covering tjhe five continents, as well as short-code numbers (333 for voice mail and 777 for customer service).

3.2.1.2 FIXED-LINE TELEPHONY

Market and competitive environment Maroc Telecom isMorocco’s leading provider of Fixed-line telephony, internet and data transmission services. It is also the only provider of ADSL/fiber optic TV in markets that were fully liberalized in 2005. The main fixed-line telecommunications services provided by Maroc Telecom are: – telephony services; – interconnection services with domestic and international operators; – data transmission services provided to businesses, internet service providers and other telecommunications operators; – high-speed and very-high-speed broadband with the associated value-added services; – IPTV offer, Triple Play offer and SVoD. Competitors launched their own fixed telephony and/or internet plans after the ANRT published its decision in 2015 setting the technical and pricing terms of the unbundling offer. InAprilb2016, theANRT issued new guidelines for the pricing of plans offered by telecoms operators. FIXED-LINE RESIDENTIAL TELEPHONY MARKET Maroc Telecom offers a wide range of innovative plans tailored to the different needs of its customers: – phony, which allows customers to make unlimited calls to Maroc Telecom fixed-line numbers, as well as up to 8bhours perbmonth of free calls to domestic mobile numbers; – Double Play ADSL is targeted at customers wanting very affordable 4 Mb/s or 12 Mb/s ADSL internet access from MADb199 incl. tax per month; – MT Box, the first Triple Play plan on theMoroccanmarket, includes unlimited Fixed-line telephony, free calls to mobile numbers, ultra-broadband ADSL optic fiber internet access and various TV packages; – Multiscreen VoD provides access to an unlimited range of movies and series from big US studios such as Paramount, Sony, Disney and ABC. Fixed-line (including restricted mobility) Residential market share trend over the past threebyears

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Market share

2017

2016

2015

Maroc Telecom

84.34% 77.06% 66.50% 15.17% 22.94% 33.50%

INWI

Source: ANRT. At the end of Decemberb2017, Maroc Telecom had a 84% market share of the Residential segment.

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MAROC TELECOM ____ 2017 Registration Document