MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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

Business activities

Seasonality In Gabon, Decemberband the summerbmonths (Julybto September) generally see a surge in activity due to end-of-the-year festivities (Christmas and New Year), holidays in the country’s rural regions, family gatherings, the celebration of national independence and the back-to-school period. November, Januaryb and February, in contrast, are generally quietbmonths, the aftereffects of the summer andbyear-end peaks. Regulations OVERVIEW The regulatory framework for telecommunications in Gabon was established by Act 005/2001 of Juneb27, 2001 regulating the telecommunications sector in the Gabonese Republic as amended by Order 006/PR/2014 of Augustb20, 2014. Agence de Régulation des Communications Électroniques et de Postes , the Electronic Communications and Postal Services Regulatory Authority (hereinafter, “ARCEP”) is responsible for the regulation, control and monitoring of the telecommunications sector. ARCEP is an independent administrative authority under the supervision of the Ministry of the Digital Economy, Communication and Post Office and the Ministry of Economy and Finance. The main laws governing the telecommunications sector are: Order 08/PR/2012 of Februaryb13, 2012, on the creation and organization of ARCEP, as amended by Order 005 of Augustb20, 2014; Decreeb054 of Juneb15, 2005, on interconnection procedures and infrastructure sharing; Decreeb0844 of Octoberb26, 2006, on duties, fees and contributions payable by telecommunications operators. MAIN REGULATORY OBLIGATIONS APPLYING TO GABON TELECOM Gabon Telecom is required to pay industry fees and contributions. These include a contribution to the Universal Service Fund of an amount equal to 2% of revenues, net of interconnection charges for the Fixed-line business, and 1% of revenues, net of interconnection charges, for theMobile business, plus a contribution to telecommunications research, training and standardization of an amount equal to 2% of revenues, net of interconnection charges. In addition, Gabon Telecom is required to pay annual fees for the use of radio frequencies and numbers. The regulatory fees are capped at 5% of total revenues excluding interconnection charges for the Mobile business and at 6% of revenues excluding interconnection charges for the Fixed-line business. Finally, all operators pay a tax on incoming international calls. The amount of this tax is 47 CFAbfranc/min. GABON TELECOM LICENSES

2017 HIGHLIGHTS Regulatory highlights for 2017: – the decrease in the mobile call termination rate from 14 CFA to 10 CFA; – the renewal of Gabon Telecom’s technologically neutral license for a period of 10 years starting on Mayb28, 2017; – the designation of Gabon Telecom as a dominant operator in the mobile telecommunications market with a ban on it applying on- net/off-net rate differentiation.

3.2.2.5 SOTELMA

3

Macroeconomic indicators

2017

2016

2015

Population (000)

18,893 18,289 17,703

GDP per capita (in USD)

2,169

2,091

2,017

GDP growth

+5.3% +5.8% +6.0% +0.2% -1.8% +1.4%

Inflation

Source: IMF, Octoberb2017. SotelmabSA is the incumbent operator inMali: it emerged in 1990 from the break-up of the former Office des Postes et Télécommunications. The company was created by Order 89-32 of Octoberb9, 1989 and ratified by Lawb90-018 ANRM of Februaryb27, 1990. On Julyb31, 2009, following an international competitive privatization process, Maroc Telecom acquired 51% of Sotelma. Maroc Telecom’s representatives sit on the Board of Directors of Sotelma. Maroc Telecom has no Executive Directors within this company. The consolidation methods for the Sotelma sub-group are summarized in Notesb1, 2 and 28 to the consolidated financial statements. In addition, Chapterb2.3.4 “Related-party transactions” illustrates the type of financial flows between Maroc Telecom and the Sotelma sub-group. Fixed-line telephony, data and internet Sotelma provides Fixed-line telephony services (voice and data) as well as ADSL and FTTH internet access to residential customers, companies and the public sector. To date, Sotelma is the most active operator in the Fixed-line market. At end-Decemberb2017, the operator had a Fixed-line customer base of 154,594 lines, an increase of 3.8%, primarily driven by the development of CDMA technology, which allows rapid nationwide expansion of coverage at a lower cost. The fixed-line penetration rate is still low, however, at only 0.8% of the population at end- Decemberb2017. The operator is able to offer its Fixed-line customers ADSLbroadband packages. It also offers internet access via its CDMA network. At end-Decemberb2017, Sotelma had 64,361 internet subscribers, a 4.9% increase, despite the impact of competition from the Mobile segment.

Licenses and authorization Fixed-line authorization

Award date Expiration Date

Term

2/9/2007

2/9/2022 15byears

2G license

5/15/2007 5/15/2017 10byears

3G/4G license

3/2/2015

3/2/2025 10byears

95

MAROC TELECOM ____ 2017 Registration Document