MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

In 2017, fixed-line and internet operations in Morocco generated revenues of MADb8,962bmillion, an increase of 1.5%. This change was due largely to the rise in incoming international calls (direct and transit mode), growth of internet (especially ADSL) sales, and increased revenues from fixed-line voice subscriptions. At end-2017, the Fixed-line customer base in Morocco had grown by 5.2%byear onbyear, to 1,725 thousand lines. Strong growth in the ADSL customer base (+10%), to 1,361 thousand subscribers was underpinned by growth in MT DUO and Phony DUO (Double Play). Growth in the Fixed-line customer base (5.2%byear onbyear) was obtained as a result of sales and marketing efforts carried out since 2011. The development of the Double Play ADSL and Optic Fiber bundled plans helped to expand the customer base. CHANGE IN CONSUMER HABITS Despite the fall in rates, outgoing usage declined by 18%, with Fixed- line services affected by mobile plans from competitors. The impact of mobile competition was keenly felt in the Telestores segment, where traffic was down by 43% from 2016. Since 2012, various rate reductions and changes for international and mobile destinations, including the widespread application of a rate of MADb0.5 (incl. tax) per minute to major destinations and the enhancement of fixed-line unlimited plans, have helped to curb the decline in Fixed-line usage. “Residential” and “Business” plans FIXED-LINE OFFERS AND SERVICES As the leading fixed-line operator, Maroc Telecom has always been renowned for the wide range of plans and services it offers its Retail customers. The Fixed-line offers include: – abundance deals: through the brand “Phony” having a great success, and allowing free and unlimited calls to all Maroc Telecom fixed numbers and free passes to national mobile; – packaged offerings: — Double Play, combining Voice and Data, with advantages over voice and/or speed depending on customer needs, — and Triple Play combining Voice, internet and multimedia content, with a variety of television and radio channels. INTERNET OFFERS Maroc Telecom has a determined policy to allow the Moroccan population access to ADSL internet and provides solutions adapted to the customers’ needs. This is reflected in the introduction of the Double PlayADSL 4Mb/s product for customers with limited budgets and the new 12 Mb/s service in 2017 to meet customer needs in terms of accessibility, usage and quality of service as well as regular and frequent promotions throughout the year, such as discounted hardware packs and higher internet bandwidth for the same price. Maroc Telecom is also the first operator to launch optic fiber broadband with speeds of up to 200 Mb/s thus guaranteeing unparalleled connection speeds and convenience. Three plans are available under this offer: internet only, Double Play or Triple Play. For customers located in areas not covered by ADSL, Maroc Telecom sells Internet services through CDMA technology.

ADDITIONAL SERVICES Maroc Telecomoffers its Residential and Business customers various services: – convenience services: voicemail, itemized billing in Arabic or French, caller ID display, call-waiting notification, call transfer, three-way calling, an option for subscribers with capped rate to monitor their accounts and to top up their accounts remotely; – value-added services: Maroc Telecom offers add-on services for its broadband plans, including home automation solutions, smart devices, parental control, IP addresses, national and international domain names,betc. LOYALTY PROGRAM FOR RESIDENTIAL AND BUSINESS CUSTOMERS Maroc Telecom has developed abpoints-based loyalty program for its customers. All Fixed-line customers (excluding capped rate) are automatically enrolled in the fixed-line loyalty program. They can earnbpoints based on the amount of theirbmonthly bill. Points can then be exchanged for a range of gifts at Maroc Telecom stores. A rewards brochure is published on www.iam.ma and is available To meet the Fixed-line telephony needs of Corporate customers, Maroc Telecomproposes a wide range of offers and rate plans using the Public Switched Telephone Network (PSTN) or the Marnis digital network. The main plans are: – ForfaiFix: a range of multi-destination plans, including subscritpion to the telephone line and airtime of 30 to 165bhours valid for calls to Fixed, Mobile andbcertain international destinations; – InfiniFix: abundance plan to national fixed lines and company Maroc Telecom mobiles, with freebhours of communication to national, mobiles and the main international destinations; – rate options: intragroup Fixed & Mobile, Privilège Mobile & International (discounts on rates per minute for all destinations); – Maroc Telecom has an Integrated Services Digital Network (ISDN) calledMarnis that allows businesses to connect several telephones to a single access point. Companies then have a direct number for each employee and a large number of value-added services, such as videoconferencing, remote monitoring and payment services; – customer-service number: MarocTelecomhas a range of customer- service numbers, toll-free numbers (08000xxxxx), reduced- rate numbers (08010xxxxx) and direct numbers (08020xxxxx), accessible throughout Morocco at a flat rate, making it easier for customers to reach a business and for businesses to offer personalized customer service. FIXED-LINE INTERCONNECTION AND TRANSIT International traffic in transit via MarocbTelecom decreased by 8.7% in volume and 7.2% in value in 2017 vs. 2016. This change, although negative, remains acceptable in view of the substantial decreases experienced by the other flows of international traffic that suffered drops of more than 30%. from all retail outlets. Corporate offers TELEPHONY OFFERS

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MAROC TELECOM ____ 2017 Registration Document