MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Mobile telephony Sotelma’s Mobile business consists of prepaid and postpaid services through voice and data plans. It also provides roaming services for Sotelma mobile subscribers abroad and for customers of foreign partner operators visiting Mali. Sotelma launched its m-payment service under the Mobicash brand in 2014. COMPETITION AND MARKET SHARE Mobile market trends in Mali

PERFORMANCE The following table summarizes Sotelma’s key operating data:

Unit

2017

2016

2015

Mobile customer base (000)

7,190 7,087 7,431

Fixed-line

(000) (000)

155

149

138

Broadband access

64

61

58

109%

106%

100%

Seasonality Telecommunications activity in Mali rises during the rainy season, from Junebto September, when large numbers of Malian students abroad return home for their summer vacation. Other brief events give rise to major commercial opportunities, including religious holidays such as Tabaski (generally the day of the holiday and the followingbdays) andbyear-end holidays (December). However, mobile and fixed-line traffic falls substantially in thebmonth of Ramadan, except for the last fewbdays. Regulations OVERVIEW The regulatory framework for telecommunications in Mali is now governed by Order 2011-023/P-RM of Septemberb28, 2011 on telecoms and information and communication technologies in Mali andOrder 2011-024/P-RMof Septemberb28, 2011 on the regulations of the telecommunications sector. These two orders abrogate Order 99-043/P-RM of Septemberb30, 1999, and all previous regulatory provisions to the contrary. The Malian Regulatory Authority for Telecommunications and Postal Services ( AutoritéMalienne de Régulation des Télécommunications et des Postes , AMRTP), created by Order 2011-024, is an independent governmental body under the supervision of the Ministry of Postal Services and New Technologies. The main provisions adopted to date under the Order on Telecommunications are Decreeb2011-867 of Decemberb20, 2011 laying down the detailed rules for implementation of national roaming and Decreeb2011-872 of Decemberb30, 2011 on the sharing of infrastructure. MAIN REGULATORY OBLIGATIONS APPLYING TO SOTELMA Sotelma is required to pay a set of sector fees and contributions. Since 2013, Sotelma has been paying a total contribution of 3% of its revenues, net of interconnection charges, plus annual fees for the use of radio frequencies and numbering resources. In addition, following the enactment of the law increasing the Tax on Access to Public Telecommunications Networks (TARTOP), this tax is now 5% of total revenues. As a reminder, the tax was introduced in 2013 and had previously been set at 2% of revenues, excluding interconnection charges, product sales and equipment rental (fixed- line andmobile) and services relating to incoming international traffic. SOTELMA LICENSES

19.7

19.3

18.3

2015

2016

2017

Customer base (in millions)

Penetration rate

Source: IMF and Dataxis Mobile market share in Mali at December 31, 2017

37 % Sotelma

64 % OrangeMali

Source: Dataxis At Decemberb31, 2017, the Mali market had 20.43bmillion Mobile customers, representing a penetration rate of 109%. Two mobile operators are currently active in Mali. Sotelma and Orange have 2G and 3G licenses there. The third mobile license, granted to the Planor Group inMali, was confirmed in 2013.This new competitor plans to launch its mobile service in early 2018. At Decemberb31, 2017 Sotelma had 7.2 million Mobile customers, a 1.5% increase from a year earlier. Sotelma continued to build its mobile network in 2017, raising its total number of BTS to 2,085.

Licenses and authorization

Award date Expiration Date Term

Fixed-line license 2G, 3G

7/31/2009 7/31/2024 15byears

96

MAROC TELECOM ____ 2017 Registration Document