Workshop on Fixed-Mobile Interconnection PART II THE NEW REGULATORY FRAMEWORK IN MOROCCO

1. Workshop on Fixed-Mobile InterconnectionPART II THE NEW REGULATORY FRAMEWORKIN MOROCCO Geneva, 20-22 September 2000

2. Map of Morocco

3. Some Facts • Population (millions) 28 to 30 • Area (sq. Km) 710,850 • GDP per capita ($) 1260 • Inflation rate (April 2000) 2,2% • Language : Arabic, Berbers, business conducted in French, English and Spanish

4. Some Facts (cont.) • Largest phosphate reserves in the world • Diverse agricultural (including aquaculture) sector • Oil and gas recently discovered • Large tourism industry • Growing manufacturing sector • Considerable inflows of funds from Moroccans working abroad • Growing foreign direct investments

5. The telecommunications sector context • New telecommunications law (law 24-96) • One state-owned operator (Maroc Telecom) • Fixed Line Services : 1,5 million subscribers • Teledensity : 5% • Wireless Services : 6000 subscribers for NMT and over 400,000 subscribers for GSM (over 250 000 prepaid cards) • The Second GSM private Operator (Medi Telecom) • Two GMPCS Operators • ORBCOMM Maghreb (positioning; messaging) • TESAM Maroc (all services) • Three VSAT Operators (SpaceCom, Gulfsat Maghreb, Argos)

6. Before the 24-96 law • Creation of the National Post and Telecommunication Office (ONPT) in 1984  ONPT started associating the private sector in network building “civil engineering works connections and cable laying”, 1988 •  In 1989, the private sector was authorized to set up and • commercialize terminal equipment. •  In 1992 ONPT launched the public phone project by associating the • private sector in managing the public phones. •  For the internet, ONPT has authorized in 1995 the internet service • providers to offer Internet services by using its fixed network.

7. The 24-96 Law • After 73 years of the state owned monopoly domination, it was decided in August 1997 to completely liberalize the Telecom sector. • The incumbent became a corporation and its privatization is currently under way. • A mobile phone license was issued for the profit of MEDITELECOM in order to operate a second GSM Network. • 2 GMPCS licenses were issued. 3 VSAT licenses were issued. • The main objective of issuing the second GSM license was to introduce progressively competition in the Telecom Market as it is stated in the 24-96 Law.

8. The 24-96 Law • Open competition to all telecommunication activities • Does not impose the time limits for opening market • segments to competition • Liberalize price except for those related to the Universal • Service and interconnection • Set up a financial contribution required by all operators • for the benefit of the Universal Service, land management, • R&D and training.

9. The 24-96 Law aims at : • Create an efficient and transparent regulatory framework. • Enhance the telecom Network and keep up with technology progress in the era of an open Telecom Market. • Fulfill the universal service mission. • Contribute via the telecom sector to the development of national economy.

10. The 24-96 Law aims at : • Separate between telecommunication and post activities • Separate between regulatory matters and operational issues • Create a regulatory organization (ANRT) for the Telecom sector.

11. National Telecommunication Regulatory Agency (ANRT) • A Prime Minister Public Agency. • Prepare studies and regulatory acts for the Telecom sector. • Ensure the strict application of the rules. • Financially autonomous body.

12. ANRT ATTRIBUTIONS

13. The Regularly Framework

14. The Interconnection decree • Define the obligations of competitive • operators • Define the role of ANRT as regulator

15. OPERATORS ’OBLIGATIONS Respect principles and rules of interconnection. Produce all necessary information to the regulator. Operators who hold a market share higher than 20% of a telecommunications service must submit an interconnection offer to the regulator for approval. Also they shall inform the regulator regularly of the modifications concerning the interconnection offers.

16. THE ROLE OF ANRT Ensure clear terms, conditions and fair prices for interconnection Make sure that the interconnect agreement is in accordance with the interconnection decree and approve the interconnection offer Impose sanctions and penalties for violation of regulation Play a role of arbitrator in the interconnect dispute

17. ANRT AS ARBITRATOR REFERALL TO THE ANRT How? When? Inquiry of the dispute file made by the Director of the ANRT 30 days No conclusion of the interconnect agreement Post-agreement disputes Decision of the (administrative committee) 15 days

18. SOME SIGNIFICANT GSM FIGURES

19. IAM GSM subscribers MEDITEL GSM subscribers service MÉDITEL 1000000 launch 900000 Appel à IAM Prepaid 800000 expression cards launch 700000 d’intérêt 600000 Licence process 500000 License launch awarding to 400000 MEDITEL 300000 200000 100000 0 1994 1995 1996 1997 1998 mar- jun- sept- jan- mar- may- jun- 99 99 99 00 00 00 00

22. CONCLUSION 1- The deregulation of telecommunication in Morocco progresses in time and space. 2- Th new reforms opened widely Morocco to competition in the telecommunications sector. 3- Moroccan Customers and the economy of the kingdom benefit from the new reforms of the sector. 4- Deregulation does not mean absence of rules. 5- A minimum intervention is necessary whenever it is required using coordination and arbitrage.