MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

In Aprilb2016, the ANRT adopted new guidelines for the review of operators’ rate plans. UnlikeMaroc Telecom, non-dominant operators are able to practice on-net and off-net rate differentiation for prepaid customers. Promotions are subject to the replicability test on a full- cost basis. The minimummargin required by Maroc Telecom for the replicability test for fixed-line and mobile voice is currently 20%. Regulation of wholesale rates Interconnection rates (fixed-line andmobile voice& SMS termination), leased line rates, local loop unbundling rates (physical, virtual and bitstream) and infrastructure access rates are set by the ANRT for several years and integrated each year intoMaroc Telecom’s technical and pricing terms which are subject to ANRT approval. Interconnection BACKGROUND Interconnection is governed by Lawb24-96 and Decreeb2-97-1025, as amended and supplemented by Decreeb2-05-770 of Julyb13, 2005, which defines the technical and pricing terms for interconnection to public telecommunications networks. Every operator of a public telecoms network is required to accept requests for interconnection from a holder of a license to operate a public telecom network. INTERCONNECTION RATES In Februaryb2017, the ANRT reintroduced asymmetric mobile call termination rates. This took effect on Marchb1, 2017. The mobile call termination rate for IAM is now MAD 0.1169/min (incl. tax) and that for Médi Telecom and Inwi is MAD 0.1399/min (incl. tax).

MAIN OTHER LICENSES GRANTED – GSM (2G) Mobile telephony: granting of a license toMedi Telecom in Augustb1999, for a renewable term of 15 years, extended to 25 years in 2005; granting of a license to Wana in Februaryb2009 (commercial launch in Februaryb2010); – fixed-line next-generation telephony: in 2005, two licenses were awarded for next-generation Fixed-line telephony; – in Julyb2005, a fixed-line license including local loop (without restricted mobility) and national and international transmission was awarded to Medi Telecom; – in Septemberb2005, a fixed-line license including local loop (with and without restricted mobility) and national and international transmission was awarded to Wana; – 3G and 4G Mobile telephony: in addition to the licenses granted to Maroc Telecom, 3G and 4G mobile licenses were awarded to the existing operators Medi Telecom and Wana in 2006 (3G) and in 2015 (4G); – VSAT licenses: in addition to the license awarded to Maroc Telecom inNovemberb2015, five other VSAT licenses were granted. Retail-pricing regulations Retail rates may be freely set by operators, subject to compliance with antitrust rules and uniformity of domestic rates. Operators must notify the ANRT of their rates 30bdays before publishing or applying them. As the dominant operator, Maroc Telecom is required to justify its rates with regard to its costs and whether third-party operators are effectively able to replicate its offers. In addition, the duration and frequency of promotions are governed by the Order of Juneb3, 2008, which sets out the terms for the promotion of telecommunications services.

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The table below shows the changes in call termination rates on national mobile networks (MADbexcl. tax per minute) since 2011:

Mobile Maroc Telecom

Mobile Medi Telecom

Mobile Inwi

Off-Peak

Peak

Off-Peak 1.2309 0.8801 0.5536 0.3378

Peak

Off-Peak 0.8317 0.6238 0.3924 0.2755

Peak (a) 0.4158 0.3119 0.1962 0.1377

From 1/1/2011 to 6/30/2011 From 7/1/2011 tob12/31/2011 From 1/1/2012 tob6/30/2012 From 7/1/2012 tob12/31/2012 From 1/1/2013 tob12/31/2016

0.998

0.499

0.6154

0.7186

0.3593

0.44

0.452

0.226

0.2768 0.1689

0.3052

0.1526

0.1339 0.1169

0.1339 0.1339

0.1339

Since 03/01/2017b (b) 0.1339 (a) Peakbhours are 8am-8pm while off-peakbhours are 8pm-8am and on Saturdays, Sundays and public holidays. The peak/off-peak distinction fell away onbJanuaryb1, 2013. (b) Until a new decision is made.

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MAROC TELECOM ____ 2017 Registration Document