2009 Morocco - Telecoms, Mobile, Broadband and Forecasts

Morocco is one of the most advanced telecommunications markets in Africa and often seen as a role model for future developments in other parts of the continent. It features a majority-privatised, highly profitable incumbent telco, Maroc Telecom (MT), three fixed and mobile network operators, as well as the highest penetration and some of the lowest prices on the continent for broadband Internet access.

The duopoly between MT and Meditel in the mobile market came to an end in June 2008 when the third entrant, Wana, started offering mobile services on its CDMA2000 network. Its licence was extended to include GSM spectrum in early 2009 which is expected to provide a further boost to the market.

The fixed-line market is experiencing a renaissance, following the launch of the second and third network operators, Meditel and Wana, and fuelled by the growing demand for broadband services. Most of the new connections are wireless, with both new service providers rolling out WiMAX networks in parallel to using their mobile platforms for the provision of fixed services.

The Internet market is dominated by MT’s ADSL broadband service which held over 90% of the market until recently. However, within two years of their introduction, 3G mobile broadband services had taken more than 40% of the broadband market by early 2009. This development is expected to continue, since the mobile networks reach a far greater percentage of the population than MT’s copper fixed-line network.

With all three major players being fixed as well as mobile network operators, the boundaries between fixed and mobile are beginning to disappear as technologies and services converge. Innovative new services have been introduced such as the first commercial IPTV service on the continent. To accommodate the increasing amount of voice and Internet traffic, fibre optic national backbone networks and international connectivity are being expanded.

Key highlights:

·         Forecasts for fixed-line, mobile, Internet and broadband markets to 2010 and 2015;

·         Mobile penetration has broken the 75% barrier;

·         Decreasing ARPU and increasing churn;

·         More fixed-wireless than fixed-line connections;

·         3G mobile broadband set to overtake ADSL in 2009;

·         Trials of EV-DO Rev. B and Broadband over Powerline technologies;

·         New international fibre links;

·         Profiles of major players in all market sectors;

·         2008 financial results;

·         Zain invests in Wana;

·         Majority stake in Meditel up for sale.

Morocco – distribution of ADSL access by speed – March 2009

(Source: BuddeComm based on ANRT and company data)

Data in this report is the latest available at the time of preparation and may not be for the current year.