MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Onatel’s Extraordinary Shareholders’ Meeting of Decemberb29, 2010 approved plans to merge with Onatel’s mobile subsidiary. Since then, Onatel has become a global operator, benefiting from synergy between its Fixed-line, Mobile and Internet businesses. Maroc Telecom’s representatives sit on the Board of Directors of Onatel. Maroc Telecom holds has no operating positions within these companies. The consolidation methods for Onatel and its subsidiaries are summarized in Notesb1, 2 and 28 to the consolidated financial statements. In addition, Chapterb2.3.4 “Related-party transactions” describes the type of financial flows between Maroc Telecom and Onatel. Fixed-line telephony, data and internet Onatel provides Fixed-line telephony services (voice and data) as well as ADSL and FTTH internet access to residential customers, companies and the public sector. Onatel lost its monopoly on basic services (domestic Fixed-line telephony, telex and telegraph) on Decemberb31, 2005. However, it currently remains the only Fixed-line telephony operator in Burkina Faso. By contrast, Onatel competes with other service providers in the Internet market. At end-Decemberb2017, Onatel had a Fixed-line customer base of 76,000 lines, an increase of 0.4% over 2016 despite competition from Mobile services. The fixed-line penetration rate is still low, at only 0.4% of the population at end-Decemberb2017. The operator also offers its customers broadband plans via its ADSL network. At end-Decemberb2017 Onatel had 13,500 internet subscribers, relatively unchanged from 2016 despite the impact of competition from 3G internet, an effective alternative to fixed-line internet. Of these customers, 65% have ADSL broadband. Mobile telephony Onatel’s Mobile business, operated under the Telmob brand, provides prepaid and postpaid services. Mobile services are offered for voice, value-added services (SMS, MMS,betc.), 3Gmobile internet and roaming. In 2013, Onatel launched its m-payment service under the Mobicash brand, as well as other 3G services. COMPETITION AND MARKET SHARE Mobile market trends in Burkina Faso

MAIN REGULATORY OBLIGATIONS APPLYING TO MAURITEL Mauritel is required to pay industry fees and contributions. These include an annual universal-service contribution of no more than 3% of revenues, net of interconnection charges. It is also required to pay regulatory fees of nomore than 2%of revenues,net of interconnection charges, and an annual research and training contribution of nomore than 1% of revenues, net of interconnection charges. For 2017, the amount of this fee was set at 0.6% of revenues. Lastly, Mauritel pays annual fees for the use of radio frequencies and numbers as well as a levy of €0.08/min on inbound international traffic. MAURITEL LICENSES

Licenses and authorization Fixed-line authorization

Award date Expiration Date

Term

4/12/2001 4/12/2021 20 years 7/18/2015 7/18/2025 10byears 7/27/2006 7/27/2021 15byears

2G license 3G license

2017 HIGHLIGHTS Regulatory highlights for 2017:

– the decrease in the mobile call termination rates (from MROb3.5/ min to MROb3/min) from Julyb1, 2017 following the ARE decision of Juneb21, 2016 approving interconnection catalogs; – the MROb285 million fine imposed by the ARE in Januaryb2017 for failing to put sufficient customer identification measures in place; – the MROb216 million and MROb591.7 million fines imposed by the ARE in June and Decemberb2017 for failing to provide an adequate quality of service; – the subsidiary has prepared in advance for the change of currency which is planned for 2018 so that its billing process will not be disturbed.

3.2.2.3 ONATEL

Macroeconomic indicators

2017

2016

2015

Population (000) GDP per capita (in USD)

18,935

18,420

18,106

94%

84%

81%

17.6

1,884

1,790

1,698

GDP growth

+6.4% +5.9% +4.0% +1.5% -0.2% +0.9%

15.4

14.4

Inflation

Source: IMF, Octoberb2017. Onatel (Office National des Télécommunications) is the incumbent operator of Burkina Faso. It was formed following the break-up of Office des Postes et Télécommunications in 1987, and became a state- owned company in 1994. In Octoberb2002, the government created Telmob, Onatel’s wholly owned mobile subsidiary, which has been licensed to operate a GSM mobile network since Aprilb2004. On Decemberb29, 2006, following an international competitive privatization process, Maroc Telecom acquired 51% of Onatel. On Aprilb29, 2009, Onatel was listed for trading on the regional stock exchange in Abidjan, Ivory Coast. This enabled the Burkina Faso government to sell 23% of the telecommunications operator on the market.

2015

2016

2017

Customer base (in millions)

Penetration rate

Source: IMF and Dataxis

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MAROC TELECOM ____ 2017 Registration Document