Workshop on Fixed-Mobile Interconnection PART II THE NEW REGULATORY FRAMEWORK IN MOROCCO Geneva, 20-22 September 2000.

Workshop on Fixed-Mobile Interconnection

PART II THE NEW REGULATORY

FRAMEWORK IN MOROCCO

Geneva, 20-22 September 2000

Map of Morocco

Some Facts

Population (millions) 28 to 30Area (sq. Km) 710,850GDP per capita ($) 1260Inflation rate (April 2000) 2,2%Language : Arabic, Berbers, business

conducted in French, English and Spanish

Some Facts (cont.)

Largest phosphate reserves in the worldDiverse agricultural (including aquaculture) sectorOil and gas recently discovered Large tourism industryGrowing manufacturing sectorConsiderable inflows of funds from Moroccans

working abroadGrowing foreign direct investments

The telecommunications sector contextNew 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)

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.

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.

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.

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.

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.

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.

ANRT ATTRIBUTIONS

Missions Past Now

Frequency spectrummanagement

Minstère des Postes etTélécommunications

ANRT

Preparations of regulatory actsMinstère des Postes etTélécommunications

ANRT

equipment approvalOffice National des Postes et

TélécommunicationANRT

Tenders preparation for licenseissuing

ANRT

Tariff propositionOffice National des Postes et

TélécommunicationANRT

Interconnection disputesettlement

ANRT

Cryptography control ANRT

The Regularly Framework

1. License regime

Public Network using the public phone domain

Public Network using the radio spectrum

2. Authorization regime Private Networks

3. Agreement regime

Radio electric settlement Terminal equipment Test and monitoring laboratory

4. Declaration Regime Value added services

5. Regime of free settlement Internal Networks Low power radio

The Interconnection decree

• Define the obligations of competitive operators

• Define the role of ANRT as regulator

OPERATORS ’OBLIGATIONSOPERATORS ’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.

THE ROLE OF ANRTTHE ROLE OF ANRT

Ensure clear terms, conditions and fair prices for interconnection

Make sure that the interconnect agreement is inaccordance with the interconnection decreeand approve the interconnection offer

Impose sanctions and penalties for violation of regulation

Play a role of arbitrator in the interconnect dispute

REFERALL TO THE ANRT

When?

No conclusion of the interconnect

agreement

Post-agreement disputes

How?

Inquiry of the dispute file made

by the Director of the

ANRT

Decision of the (administrative

committee)15 days15 days

ANRT AS ARBITRATORANRT AS ARBITRATOR

30 days30 days

SOME SIGNIFICANT GSM FIGURES

Appel àexpressiond’intérêt

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

1994 1995 1996 1997 1998mar-99

jun-99

sept-99

jan-00

mar-00

may-00

jun-00

IAM GSM subscribers

MEDITEL GSM subscribers

Licenceprocesslaunch

Licenseawarding toMEDITEL

IAM Prepaid

cards launch

MÉDITEL servicelaunch

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.