MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

At end-Decemberb2017, Mauritel had a Fixed-line customer base of 50,527 lines, 6.4% more than in 2016. Mauritel also has an ADSL network via its fixed-lines whereby it can offer broadband, a fast- growing segment, to its customers. At end-Decemberb2017, Mauritel also had 12,776 internet subscribers, an increase of 18.6%, most of whom are connected via the ADSL network (99% of the base). To meet its international bandwidth needs, Mauritel participates in a consortium that has capacity on the Africa Coast to Europe (ACE) submarine cable and includes all Mauritanian telecomoperators and the Mauritanian post office. Mobile telephony Mauritel’s Mobile business consists of prepaid and postpaid services. Mobile services include voice, value-added services (SMS,MMS,betc.), 3G mobile internet and roaming. In addition, Mauritel launched its m-payment service under the Mobicash brand in 2013. To provide these services Mauritel relies on a network of 1,321 base transceiver stations (BTS) located throughout the country, offering 2G and 3G technology with the latter coming into service in 2009. In Julyb2015, Mauritel renewed its 2G license for a period of 10byears in return for a fixed share (MRO 10bbillion) and an annual variable share corresponding to 2.5% of 2G revenues for the term of the license.

Mauritanian Mobile market share at December 31, 2017

21 % Chinguitel

59 % Mauritel

20 % Mattel

Source: Dataxis At Decemberb31, 2017, the Mauritanian market had 3.6bmillion Mobile customers, representing a penetration rate of 94%, down 3bpoints in one year. Mauritel operates alongside two other operators, SociétéMauritano- Tunisienne de Télécommunications Mattel and Chinguitel. Chinguitel launched a GSM service in 2011. Chinguitel launched a GSM service in 2011. In 2006, the ARE awarded 3G licenses to Mauritel and Chinguitel; Mattel did not obtain its 3G license until Marchb2009. At Decemberb31, 2017 Mauritel’s mobile customer base was 2.1 million (almost all prepaid), a 7.8% increase year-on-year despite heightened competition and regulatory customer identification requirements. Mauritel maintained its leadership position with a market share of 59% at end-Decemberb2017. PERFORMANCE The following table shows Mauritel’s key operating data: Seasonality In Mauritania, the peak period is generally from Junebto September. Other spikes in usage occur during religious holidays, providing significant sales opportunities. Fixed-line and mobile usage tends to be lower during Ramadan. Regulations OVERVIEW The regulatory framework for telecommunications in Mauritania was modified by Lawb2013-025 of Julyb15, 2013 on electronic communications (hereinafter the “Law”). This Lawbsupplements in particular the prerogatives of the ARE and gives it powers to curb unfair business practices in the sector. These prerogatives are in addition to the ARE’s regulatory, audit, and oversight powers with regard to industry operators, as set forth in Lawb2001-18 of Januaryb25, 2001 establishing the ARE. The ARE is an independent public-sector entity with multi-sector authority and full financial and managerial autonomy. The ARE reports directly to the Prime Minister. Unit 2017 2016 2015 Mobile customer base (000) (000) (000) 2,139 1,984 2,121 Fixed-line 51 13 48 11 45 10 Broadband access

3

COMPETITION AND MARKET SHARE Mobile market trends in Mauritania

98%

94%

91%

3.6

3.6

3.4

2015

2016

2017

Customer base (in millions)

Penetration rate

Source: IMF and Dataxis

91

MAROC TELECOM ____ 2017 Registration Document