MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

IAM’s physical unbundling technical and pricing terms have been successively modified. This was the case in 2013 when the unbundling of inactive lines was added to the technical and pricing terms and in 2017 when some pricing was overhauled. In 2017, the main unbundling rates were as follows: – physical unbundling for MAD 73/month (excl. tax) at the local loop level and MAD 60/month (excl. tax) at the “local sub-loop” level (MSAN); – fiber optic links for unbundling for MAD 10/m/year (excl. tax); – virtual unbundling for MADb41.25/month (excl. tax) for partial access and MADb82.50/month (excl. tax) for full access; collection rates vary depending on speed, level of collection and class of service for regional collection. Numbering and portability of numbers The ANRT allocates numbers, blocks of numbers and prefixes to operators of public telecomnetworks in an objective, transparent and non-discriminatory manner. These numbers and blocks of numbers may not be transferred without ANRT’s prior express consent. The portability of fixed-line and mobile numbers has been operational since Mayb31, 2007. The terms and conditions for its implementation were set by the ANRT in its Decision 10/06 of Octoberb4, 2006, concerning the terms and conditions for number portability, and in its Decision 10/07 of Julyb18, 2007, setting the pricing terms of portability for Maroc Telecom’s fixed-line andmobile numbers andMedi Telecom’s mobile numbers. The decision of Octoberb4, 2006 was repealed by the ANRT’s Decision ANRT/DG 1/11 of Februaryb1, 2011, in turn amended and supplemented by Decision 09/12 of Decemberb6, 2012, which was primarily intended to shorten the cancelation period offered to customers under this procedure. The ANRT’s decision of Octoberb8, 2015 on the terms and conditions of portability is intended to further streamline the portability process by reducing porting times (three businessbdays vs. seven calendarbdays) and by requiring operators to set up, under the aegis of the ANRT, a centralized database of ported numbers within a maximum of 18bmonths. In Octoberb2016, the ANRT launched a consultation for the selection of the third party responsible for setting up andmanaging the central database of ported numbers. The consultation is underway. Provision of infrastructure Lawb55-01, amending and supplementing Lawb24/96, introduced a provision under which public-sector entities, utilities licensees and operators of public telecom networks are required, to the extent this does not interfere with public use, to make available to the operators of public telecoms networks which request them the easements, rights of way, civil engineering works, roads, cables, highbpoints,betc., which they have, in order to install and operate transmissionmaterials.Thesemust bemade available on acceptable, objective and non-discriminatory technical and financial terms and conditions, which ensure fair competition. Separate accounting According to the terms of Decreeb2-97-1026, as amended and supplemented by Decreeb2-05-771 of Julyb13, 2005 and Decreeb 2-97-1025, as amended and supplemented by Decreeb2-05-770 of Julyb13, 2005, operators are required to maintain an analytical accounting systemwhich determines the costs, revenues and profits of each network they operate or service they offer. The financial statements must be submitted, for audit, to a body designated by the ANRT.

Decision 08/12 of Decemberb6, 2012 established a consistent framework for regulatory statements of cost refunds and income which operators are required to submit annually to the ANRT. Universal service Universal service includes at least one telephone service of a specified quality, at an affordable price; it also includes a service enabling access to the internet, the routing of emergency calls, the provision of telephone kiosks on the public highway, an information service and a printed or electronic directory (the last two services are mandatory). Lawb55-01, amending and supplementing Lawb24/96, established the principle of Pay or Play and set the contribution of operators of public telecom networks to the universal service at 2% of revenue before tax (net of interconnection fees, handset sales and repayments to value-added service providers). These operators may either perform the universal service tasks themselves, or pay a contribution into a special trust account, the Universal Service Fund (referred to as the “SU”). The manner in which each operator provides universal service tasks are set out in one particular set of specifications, approved by decree. In 2008-2011, the ANRT launched a consultation with all the national operators for the realization of a vast universal service program, called “PACTE,” the objective of which was to provide coverage for telephone services and internet access to all the blank areas in Morocco, namely 9,263 villages. The Telecommunications Universal Service Management Board selected Maroc Telecom for 7,338 of them. Today, more than 99% of the program has been completed and Maroc Telecom has reminded the ANRT that, except for a few sites, completion of the PACTE program depends only on completion of the electrification program by Office National d’Électricité. Notebthat the General Policy Document for the period 2014-2018 provides for the expansion of the universal service to include broadband, and that accordingly in JunebandAugustb2016 the ANRT launched two universal service consultations for the implementation of the National Broadband Development Plan (PNHD). The first concerns mobile broadband coverage of 10,651 locations; the second, the rollout of fiber (backbone and backhaul). Maroc Telecom participated in both consultations which are ongoing. Moreover, Maroc Telecom contributes to implementation of the “Nafid@” and “INJAZ” programs, which have been selected as universal service programs by the Universal Service for Telecommunications Management Committee and partly funded by the Fund for Universal Service for Telecommunications ( Fond de Service Universel des Télécommunication or FSUT). In particular, these programs concern the general application of information and communication technologies in education: – the INJAZ program aimed at graduate students from a large number of teaching institutions, colleges and universities in the field of engineering, science and information and communication technology, and consists of giving them access to the mobile broadband internet service and a laptop; – the Nafid@ program, which supplements the GENIE program (which consists in equipping schools with computers and internet access), is intended to encourage the education sector to use information and communication technologies in the educational system, by making available to it the means appropriate for this purpose (laptops, internet access).

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MAROC TELECOM ____ 2017 Registration Document