11 Jan 2010Morocco Broadband Overview

Morocco is one of the most advanced telecommunications markets in Africa, featuring a majority-privatised highly profitable incumbent operator, three fixed network operators, mobile penetration in excess of 80 per cent and the highest penetration and lowest prices for broadband access in North Africa. Since telecom reforms were implemented in the 1990’s and liberalisation set in motion in 2000, the market has experienced phenomenal growth, particularly in the mobile voice and data segments.

The incumbent fixed-line operator is Maroc Telecom which emerged in 1998 from the restructuring of the Office National des Postes et Télécommunications. Maroc Telecom is still the leading telecoms operator in Morocco in terms of total revenues. But its lead in the fixed and mobile communication segments has been eroded by alternative players. Maroc Telecom’s fixed operations expanded into multimedia and TV services with the introduction of IPTV services in 2006. Maroc Telecom is still partly state-owned. In June 2007, the Moroccan state announced the sale of a 4 per cent stake in Maroc Telecom, offering 35.16 million ordinary shares to Moroccan and international investors.

Morocco’s fixed telephony coverage was 10.89 per cent at the end of September 2009, or 3.39 million subscribers. In Q3 2009, Maroc Telecom had a 37.4 per cent share of the fixed telephony subscriber market, representing 1.27 million lines. This was down 3.4 per cent year-on-year. The company was beaten into second place by Wana (previously Maroc Connect) with a 62.34 per cent share. Telefonica's Moroccan subsidiary Medi Telecom (Meditel) had a marginal share at 0.26 per cent.

Morocco has three licensed mobile network operators, namely Maroc Telecom, Meditel and Wana. All three were awarded 3G licenses in June 2006. Wana’s 3G service went live in May 2007. Prepaid services predominate, representing about 77.3 per cent of mobile subscriptions in Q3 2009. At end Q3 2009, the total number of mobile subscriptions reached 25.07 million and penetration stood at 80.44 per cent, compared to 72.29 per cent in September 2008.

Maroc Telecom holds 60.77 per cent of the mobile market. Medi Telecom (Meditel) is in second place with a market share of 36.72 per cent in Q3 2009. This was up from 34.73 per cent in Q4 2008. Meditel is bravely and successfully fighting off Maroc Telecom with promotional offers and cheap tariffs. In terms of mobile data access, it is Wana that deserves credit. In June 2009, 3G Internet subscriptions passed that of fixed ADSL. No other market segment has grown that quickly in 2009. This was mainly down to Wana, which has driven the establishment of this new segment.