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Broadband in Morocco: Political will meets socio-economic reality. Washington, D.C: infoDev / World Bank. Available at http://www.broadband-toolkit.org/. iii Table of Contents Acronyms ................................................................................................................................. vii 1 Socio-economic overview ......................................................................................................1 2 Regulatory and institutional framework of the ICT sector ................................................. 2 2.1 Background ........................................................................................................................................................... 2 2.2 The regulator ........................................................................................................................................................ 4 2.3 Policies and national strategies .......................................................................................................................... 5 2.4 From e-Morocco to Digital Morocco............................................................................................................... 6 3 The broadband market ........................................................................................................ 8 3.1 Background ........................................................................................................................................................... 8 3.2 International connectivity ................................................................................................................................... 9 3.3 In-country backbone infrastructure ................................................................................................................ 10 3.4 Penetration of broadband................................................................................................................................. 10 3.4.1 Wireline broadband.................................................................................................................................... 10 3.4.2 Broadband on the move............................................................................................................................ 11 3.5 Retail broadband prices .................................................................................................................................... 13 4 Creating an enabling environment ..................................................................................... 16 4.1 Overview ............................................................................................................................................................. 16 4.2 Regulation ........................................................................................................................................................... 16 4.2.1 Tariff guidelines .......................................................................................................................................... 16 4.2.2 Local Loop Unbundling ............................................................................................................................ 16 4.2.3 Universal access .......................................................................................................................................... 17 4.3 Applications ........................................................................................................................................................ 18 4.4 e-Government .................................................................................................................................................... 18 4.5 Moroccans online............................................................................................................................................... 20 5 Success and challenges .......................................................................................................23 5.1 Well-balanced infrastructure ............................................................................................................................ 24 5.2 Improved quality and affordability .................................................................................................................. 24 5.3 Greater push for demand driven services ...................................................................................................... 24 5.4 Lessons learned and remaining challenges .................................................................................................... 24 Endnotes ...................................................................................................................................27 iv List of Figures Figure 1-1: Morocco, Socio-economic indicators…………………………………………………… 1 Figure 2-1: Dial-up and broadband shares of total Internet subscribers in Arab states, 2008………... 3 Figure 2-2: Morocco‟s score in ICT sector governance performance, 2010-2011…………………… 3 Figure 2-3: Main stages in the Moroccan telecom market, 1997-2010………………………………. 6 Figure 2-4: Digital Morocco vision for the advancement of ICT in Morocco………………………. 7 Figure 3-1: Internet market shares, June 2011………………………………………………………. 9 Figure 3-2: 3G market share, June 2011…………………………………………………………….. 9 Figure 3-3: ADSL subscription……………………………………………………………………... 11 Figure 3-4: ADSL distribution by speed, March 2008 and 2011…………………………………….. 11 Figure 3-5: Distribution of broadband subscriptions, Morocco……………………………………... 12 Figure 3-6: 3G subscriptions per 100 people, selected economies, 2010…………………………….. 12 Figure 3-7: Speeds and usage of mobile broadband networks, Q1 2011…………………………….. 12 Figure 4-1: Internet uses, Morocco, 2010………………………………………………………….... 19 Figure 4-2: Share of Facebook users, Arab region, April 2011……………………………………… 19 Figure 4-3: Moroccan e-Government targets……………………………………………………….. 20 Figure 4-4: Internet users in Morocco and selected countries………………………………………. 22 List of Tables Table 2-1: ICT policy-making bodies from 1994-present…………………………………………… 4 Table 3-1: Key ICT indicators……………………………………………………………………… 8 Table 3-2: International Internet bandwidth………………………………………………………... 10 Table 3-3: Number of mobile base stations, 2011…………………………………………………... 13 Table 3-4: Regional comparison of ADSL residential pricing, 2011, US$……….……….………… 13 Table 3-5: Morocco 3G tariffs, September 2011……………………………………………………. 14 Table 3-6: Mobile broadband prices, September 2011, US$………………………………………… 14 Table 3-7: Bundled offers, September 2011………………………………………………………… 15 Table 4-1: Universal Service Fund programs………………………………………………………... 17 Table 5-1: Household Internet penetration rate by geographic zone and monthly income, 2008……. 23 List of Boxes Box 3-1: Awarding 3G in Morocco: The story behind INWI‟s success……………………………... 15 Box 4-1: e-Fez……………………………………………………………………………………… 21 Box 5-1: Experimenting with Community-Driven Wi-Fi in Morocco………………………………. 25 v Acknowledgements Samantha Muwafaq Constant of Wolfensohn Family Foundation drafted this report with significant contributions by Abdesselam El Omari of Softkey Solutions and Michael Minges, who directed the case studies for the Broadband Strategies Toolkit. The author wishes to acknowledge the support of Bachir Badaym and Samia Melhem of the World Bank, Samira Khallouk of ANRT, Said Boulisfane of WORMITEC, and Khalid Hannafi of Shabakkat as well as thank all the local counterparts who participated during interviews in Morocco. The supervision of Tim Kelly (infoDev) and Carlo Rossotto (TWICT), for their direction on the overall project, is also acknowledged, as is Samhir Vasdev for editing and preparing the document for publication. The Handbook and its case studies are generously funded by the Korean Trust Fund (KTF) on Information and Communications for Development (IC4D). The KTF is a partnership between the government of the Republic of Korea and the World Bank Group whose purpose is to advance the ICT4D agenda to contribute to growth and reduce poverty in developing countries. The KTF, as well as Philippe Dongier, Sector Manager (TWICT) and Valerie D„Costa, Program Manager (infoDev), are owed the author„s gratitude for their support and guidance on this project. vi Acronyms 2G Second Generation mobile telecommunications system 3G Third Generation mobile telecommunications system ADSL Asymmetric Digital Subscriber Line ANRT Agence National de Réglementation des Télécommunication (National Telecommunications Regulatory Agency) GB Gigabyte Gbit/s Gigabit per Second GDP Gross Domestic Product GHz Gigahertz GNI Gross National Income GPRS General Pack Radio Service HCP Haut-Commissariat au Plan (High Commission for Planning) HSDPA High Speed Downlink Packet Access ICT Information and Communications Technology IP Internet Protocol IPTV Internet Protocol Television ISP Internet Service Provider ITU International Telecommunications Union kbit/s Kilobits per second MAD Moroccan Dirham. Conversions to United States dollars have been carried out on the basis of US$1 = MAD 7.83, the rate of 1 September 2011 MENA Middle East and North Africa Mbit/s Megabit per Second MHz Megahertz NGN Next Generation Technologies ONCF Office National des Chemins de Fer (National Office of Railroads) ONE Office National de l'Electricité (National Office of Electricity) POP Point of Presence PSTN Public Switched Telephone Network SEPTI Secrétariat d'Etat aux Postes et Technologies de l'Information (State Secretariat for Posts and Information Technology) SMEs Small and Medium Enterprises SMS Short Message Service SMW3 South-East Asia - Middle East - Western Europe 3 US$ United States Dollar USF Universal Service Fund VAT Value Added Tax VoIP Voice of Internet Protocol VSAT Very Small Aperture Terminals (satellite) WCDMA Wideband Code Division Multiple Access Wi-Fi Wireless Fidelity WiMAX Worldwide Interoperability for Microwave Access vii Executive Summary This report presents the broadband landscape in  Expanding private competition and Morocco and the approach by which the country opting for an emphasis on technical has advanced its ICT sector over the past fifteen requirements, innovation, quality, and years. Despite being constrained by human access. development challenges and regional political uncertainty in today‟s “Arab Spring,� Morocco has The mobile industry is a big spotlight in emerged as a trailblazer in certain areas with Morocco‟s broadband achievements. The particularly impressive mobile broadband results. introduction of third generation wireless technology in 2007 led to substantive growth of This would not have been possible without early overall Internet subscriptions. This however has visioning. Morocco was one of the first countries come at the cost of investment in fixed in the Middle East and North Africa region that infrastructure. There is a need to boost fiber institutionalized a regulatory environment for deployment in both local access and backbone promoting competition in the telecom sector and networks. Understandably, such civil works as such made great strides in leveling the playing require financing that will only happen if the field for private operators to enter and succeed in private sector is confident it will see a return in its the market. As early as 1999, a national strategy investments. was developed to lay out the country‟s ICT vision which later became the foundation for subsequent In order for Morocco to meet its ICT vision, the plans such as e-Morocco and now Digital Morocco. By following three areas merit attention: 2006, both the fixed and mobile markets had  Incentives that encourage a well-balanced, become competitive with the award of operator broadband infrastructure and greater licenses focused on quality rather than price. investments in both fiber backhaul and As a result, Morocco‟s broadband share of total local access networks; Internet subscribers was over 99 percent by 2008,  The prioritization of broadband in exceeding that of its neighboring Arab states. universal access policies including Today, the country boasts a quarter of households concrete efforts for dealing with equipped with broadband, significantly higher affordability and awareness issues; and than two percent in 2004. Almost half the country  Programs to develop digital literacy uses the Internet, demonstrating public demand in among the older and rural population in virtual networking and communicating via the addition to those that can effectively World Wide Web. cultivate a next generation of e-content and software producers and developers. Overall, the report finds that three factors contributed to Morocco‟s success: Going beyond its initial broadband success and making broadband sustainable and  Prioritizing ICT at an early stage so that transformational will be a challenge for Morocco. subsequent planning could build on Deeping broadband access must find a way to deal previous experiences; with the social and economic reality of a lower-  A youthful and eager population first middle-income country. This will require fresh getting online at the widespread cyber and innovative solutions including more emphasis cafes and later wireless broadband; and on bottom-up initiatives. viii 1 Socio-economic overview The Kingdom of Morocco is a lower-middle- increasing pressure on natural resources. income economy situated in the northwest of While Morocco weathered the economic crisis Africa with a large coast bordering both the relatively well, pre-crisis challenges persist. Atlantic Ocean to the west and the Mediterranean Primary enrollment has improved, but secondary Sea to the north. enrollment stood at 56 percent in 2009, and the The population of Morocco was estimated at 31.9 literacy rate is still low at 58 percent. Young million in 2010 distributed over 16 districts, with people continue to suffer from lack of economic 57 percent living in urban areas. i Rabat is the opportunities and gainful employment. Youth capital and lies 88 kilometers north of Casablanca, unemployment (ages 15-24) was 18% in 2009 with the country‟s financial center and largest city of almost one third of urban youth without a job. three million inhabitants. Moroccans are a fused Additionally, while the agriculture sector is society of Arabs and Berbers. Arabic and very shrinking, it employs 41 percent of the nationally recently (since July 3rd 2011) Tamazight and active population, demonstrating a mismatch of Hassani are the official languages with French available skills and labor market demand. Finally, operating as language of government and these figures do not take into consideration the business. The local dialect of Darija is a mix of number of people who are underemployed or Berber, Arabic and French. working for the informal sector, where security and social safety nets are not available. Over the past two decades, the country has demonstrated progress in human development Historic changes are taking place in Morocco and and economic indicators. It achieved a primary the wider Middle East and North Africa region.ii school completion rate of 80 percent in 2009 up Yet, the country has emerged relatively stable from 51 percent in 1990 (Figure 1-1, left). Life from the “Arab Spring� compared to the dramatic expectancy increased from 64 years in 1990 to 72 events that have transformed the political in 2009. landscapes of neighboring Egypt, Libya, and Tunisia. The government has responded to the In 2009, Morocco‟s GDP annual growth rate was call for reforms with a new constitution that 4.9 percent and GNI per person doubled between proposes drastic changes to diffuse the power of 2003 and 2010 reaching US$ 2,950 (Figure 1-1, the King and give greater legislative power to the right). Economic diversification as well as climate parliament. With elections due on November 24th vulnerabilities resulting in frequent droughts have 2011, outcomes are yet to be seen but contributed to a gradual increase of non- expectations from citizens remain high. Similar to agricultural activities, led by the services sector their fellow Arab neighbors, Moroccans are constituting 55 percent of GDP in 2009. Despite becoming increasingly more demanding of their this progress, the country continues to be government to develop effective policies that vulnerable to economic shocks, high translate into concrete accomplishments. unemployment and low literacy rates, as well as Primary school completion and life GDP per capita, US$ expectancy 3500 2900 100 80.3 80.4 74 3000 2540 80 72 56.7 2500 2130 Percentage 51.4 47.8 70 60 71.6 1740 Years 70.4 68 2000 40 68.7 66 1310 1300 66.6 64 1500 20 64.1 62 1000 0 60 1990 1995 2000 2005 2009 500 0 Primary Completion Rate Life Expectancy 2000 2002 2004 2006 2008 2010 Figure 1-1: Morocco, Socio-economic indicators 1 2 Regulatory and institutional framework of the ICT sector 2.1 Background three additional plans have been developed, e- Morocco experienced important reforms in its Morocco 2004, updated in 2010, and Digital Morocco. ICT sector starting in 1995, when access to the Hence with this early planning, Morocco was one World Wide Web became available to the public. of the first in the MENA region to put in place At the time, telecom and postal operations along and enforce a competitive timeline for with the administering of Internet access was liberalization of its telecom sector. It was ahead of carried out through the state-owned institution its neighbors in establishing an independent Office National des Postes et Télécommunications regulating authority and a partially privatized (ONPT). telecommunications operator (by 1998) and also During the period 1995-2000, the Moroccan ahead in instituting competitive markets in both government instituted a series of reform efforts the fixed and mobile industry as well as the launch that continued to build and evolve into the of third generation (3G) mobile services. millennium, leading up to the present-day national All of this translated into concrete results. As early ICT plan Maroc Numeric 2013 (Digital Morocco). as 2008, Morocco‟s broadband share of total At the time however, the most significant measure Internet subscribers was over 99 percent, was the passing of Law 24-96 in 1997.iii This law exceeding that of neighboring Arab states (Figure led to the separation of ONPT into three entities: 2-1). Today, Internet usage is estimated at 49 i) the creation of a new regulating authority Agence percent of the population, higher than Tunisia, Nationale de Réglementation des Télécommunications Jordan and Saudi Arabia.v Overall, the role of the (ANRT); ii) the formation of Maroc Telecom government has been central in gaining successes (Itisaalat al Magreb) as a limited liability company; and between 2008-2010 the country moved up 10 and iii) the restoration of Poste Maroc (Bareed al positions in the International Telecommunication Maghreb) which retained its national state-owned Union (ITU) ICT Development Index (IDI).vi identity dedicated solely for postal and some financial services. At the same time, the government has faced challenges. Impact on the ground has been mixed, In addition, a secondary level of efforts was with questions about the effectiveness of the carried out in 1997-1998. The Ministry of Industry sector‟s governance. In the most recent study and Trade created an independent group to hold a carried out by the World Economic Forum and seminar on the role of teleservices in June of 1997, INSEAD benchmarking countries for national which then later emerged into a formal body in readiness in adaptation of ICT, Morocco ranks 83, 1998 as the Secrétariat d’Etat aux Postes et Technologies down thirteen positions from 2006-2007 and de l’Information (SEPTI), responsible for developing trailing Egypt, Jordan, and Tunisia. vii When it strategies specific to the ICT sector. In parallel, comes to the perception of laws related to ICT, the Committee for Information Technologies institutional effectiveness, and government ICT Monitoring (CITM), a public private partnership, prioritization, Morocco falls behind the world was formed in 1999 to support SEPTI and the mean and trails peer countries despite its advanced result was a report analyzing the sector and policy positioning (Figure 2-2). This suggests that strategies for moving forward. Building on this not only is there is a divergence between analysis, Morocco produced a five-year visioning government ICT strategies and the opinion of document (1999-2003) outlining the potential of business leaders in the country but that other peer ICT and this became the basis for future strategy governments are just as absorbed as Morocco in making across the sector at that time.iv Since then, actively promoting ICT. 2 Figure 2-1: Dial-up and broadband shares of total Internet subscribers in the Arab states, 2008 (Source: ITU 2009, Information Society Statistical Profiles 2009: Arab States) 7 6 5 4 Egypt Jordan 3 Morocco Tunisia 2 1 0 Importance of ICT to gov't Laws relating to ICT Gov't prioritizaton of ICT Gov't success in ICT vision promotion Figure 2-2: Morocco’s score in ICT sector governance performance, 2010-2011. Note: Out of a 1-7 (best) scale. This indicator is derived from the World Economic Forum’s Executive Opinion Survey. (Source: INSEAD and WEF. The Global Information Technology Report 2010-2011) 3 A possible factor for Morocco‟s relatively low Casablanca Technopark and the expansion of sector governance perception could be attributed offshore services such as call centers, both of to the high turnover in the ministries responsible which are creating employment, attracting private for ICT policy (Table 2-1). Since September 2007, (foreign and domestic) investment, and driving ICT policies and planning in Morocco have been demand for high quality, high speed Internet. designed and carried out by the Ministry of Industry, 2.2 The regulator Trade and New Technologies while the Ministry of The Agence Nationale de Réglementation des Communications, which had previously handled the Télécommunications (ANRT) was established in1998 ICT sector, is now responsible for governmental under Article 27, Law 29-06 as the national internal and external affairs, media relations, regulatory authority responsible for the drafting support in the development of communication and enforcing of laws related to the telecom sector and partnering on audiovisual efforts sector, including licensing, pricing, compliance, ratified by the office of the Prime Minister. While and fair competition. While it is entitled to the Ministry of Communications is not in charge financial autonomy and has its own legal status, of ICT, it has an important role to play in ANRT presides in the office of the Prime Minister advancing broadband and is an active partner in and is subject to state supervision. The agency the governing structure of Digital Morocco. consists of three main bodies: Ministerial changes are common in many i. Conseil d’Administration, chaired by the developing countries, and where these do create Prime Minister and consisting of challenges in areas of governance they also create government representatives along with opportunities. Two complimentary tactics five key ICT experts from the private and emerged in Morocco that helped the country public sectors. It sets the strategy, fiscal continue its focus on ICT – the backing of the envelop, and carries implementation sector from the highest national level (the Prime oversight; Minister office, and His Majesty King Mohammed ii. Comité de Gestion, appointed by the Conseil VI) and from municipal ICT strongholds (such as d’Administration and on a five year rotation the example in Fez (see chapter 4). While this to consider all affairs decided upon by the report primarily focuses on broadband access, the council; and country has demonstrated considerable iii. Directeur Général which houses four major commitment to development of ICT in the operations of the ANRT – the business sector notably with the establishment of department of Monitoring and Year Official body June 1994-January 1995 Ministry of Postal Services and Telecommunications February 1995– February 1998 Ministry of Postal Services and Telecommunications Ministry of Communications March 1998 – August 2000 Ministry of Communications Prime Minister Office, Department of Post, New Technologies, and Communications (SEPTI) September 2000 – September Ministry of Culture and Communications 2002 Prime Minister Office, Department of Postal Services, Media, and Communications Technologies November 2002 – May 2004 Ministry of Trade, Industry, and Communications June 2004 – August 2007 Ministry of Communications September 2007-Present Ministry of Trade, Industry and New Technologies Table 2-1: ICT policy-making bodies from 1994-present (Source: Adapted from the ―History of Moroccan Government‖ section of the official Moroccan website (in Arabic) at http://www.maroc.ma) 4 Competition, Technical Department, the Secretariat d’ Etat aux Postes et Technologies de General Secretariat, and National Institute l’Information (SEPTI) was not significant in of itself of Posts and Telecommunications.viii as its principal role was to design a strategy before it was then rebranded as a new department after Under Law 29-06, Articles 2-28 establish the two years of existence. SEPTI‟s importance lay in regulatory framework by which ANRT is the fact that it set the stage for strategic national authorized to carry out its responsibilities planning, with both international and domestic including licensing of public telecommunications ICT visioning. On the international front, its networks operating in the public domain or using 1999-2005 strategy focused on building a radio frequency service, authorization of knowledge-based economy and developing human independent networks, assignment of radio resources to compete with an increasingly frequency spectrum and approval of radio globalized world; on the domestic level, the facilities and terminal equipment connected to strategy highlighted the need for the government public networks. It also enforces compliance to be a model for the rest of the country in terms measures to ensure conditions outlined in the Law of new technology usage and delivering of are adhered to, including fees, validity period of services. the licensing, zoning in terms of coverage, leasing of lines, and technical requirements for licensing. It was not until 2004, with the passing of Law 55- 01, incorporating addendums to Law 24-96 that Since its establishment in 1998, ANRT has guidelines were introduced to further open the progressively increased its institutional capacity. It market, expand competition and enhance has pushed sector liberalization, enhanced the universal access. xi The major reform measures consultative process, increased transparency related to Law 55-01 include: through online availability of sector laws and regulations and monitors ICT development - Strengthening the role of ANRT in terms through regular statistical reports and analysis. of compliance, monitoring and Early in 2010, ANRT released an orientation note enforcement of fair competition. This covering its perspectives on the sector through includes managing the numbering system, 2013 in areas such as regulation and legislation, regulating prices and imposing reporting liberalization, development of broadband, and requirements on operators. universal access. ix A select number of measures - Expansion of the definition of universal highlighted in the note include inter-network service to include value added services tariffication rules that favor small-scale operators, such as the Internet. A key goal is to the ability for customers to change operators ensure that all areas especially rural and while maintaining the same number, and low-density regions are covered. development of new models to incentivize However, as it stands universal access can wholesale traffic. Further, a study to allocate be done via 2G mobile networks at less frequencies for 4G technologies by end of 2011 is than broadband speeds. under review along with new policy levers to - The possibility for companies to lease support VSAT viability, including a plan to issue their infrastructure to telecom enterprises new licenses for VSAT and GMPCS networks. In and for operators to share infrastructure addition to its domestic efforts, ANRT also if requested. This is of particular pursues active cooperation with Arab and significance considering the incumbent francophone regulators and according to a World Maroc Telecom owns most of the fixed Bank study, “ANRT‟s excellence is recognized on infrastructure. a regional scale.�x - The creation of the Fund of Universal 2.3 Policies and national strategies Telecoms Service (FUTS) and a reduction of contribution by telecom operators of In 1998, when liberalization efforts were two percent of revenues (net of taxes and underway with the splitting up of the ONPT, the interconnection payments). government instituted a ministerial level body to - The establishment of a special fund for design strategies that would help advance research and development. The fund Morocco‟s ICT position. The formation of depends on contributions from licensed 5 operators of 0.25% of net turnover licensing framework as in the case of some (excluding interconnection charges). wireless services being restricted to limited mobility. The multiple policy efforts that were underway early on were a positive sign of government Nevertheless Morocco has come a long way in a commitment. However they proved a challenge little over a decade, from a government-owned given that duplication and divergence of activities monopoly to the creation of an independent became inevitable. xii For example, as discussed regulator and a competitive market driven by three earlier, government turnover was frequent (the private operators (Figure 2-3). Further it is ministerial bodies related to the sector alone continually exploring new solutions. For example, changed seven times in a decade) hence not all this past year, ANRT commissioned two major policies designed were implemented. Further, studies, currently underway, to look into an some regulatory measures have created artificial effective approach to national planning of constraints for the operators as well as the broadband xiii and accelerating growth of high regulator such as a specific rather than generic speed Internet in new project developments. xiv Figure 2-3: Main stages in the Moroccan telecom market, 1997-2010 (Source: Roland Berger, Acceleration in deployment of High Speed in new planning zones in Morocco, 2011) 2.4 From e-Morocco to Digital Morocco community access centers and equipping schools The government‟s vision for the ICT sector has with computers among many others were been guided by a series of holistic plans. The first introduced early in the e-Morocco planning and e-Morocco strategy was launched in 2001, followed either continue to date, were merged with other by a second updated version in 2005 laying out the programs, or re-prioritized in future strategy vision until 2010. Drawn from the SEPTI strategy making. of 1999-2005, the themes of e-Morocco focused At the heart of Morocco‟s modern-day ICT vision on closing the digital divide and positioning is Digital Morocco 2013: The National Strategy for Morocco globally as a key ICT player. The Information and Digital Economy 2009-2013 (better premise was to create an ecosystem of good known as Maroc Numeric) released by the Ministry governance and enabling regulation that fosters of Industry, Trade, and New Technologies.xvi The competition, knowledge production and ICT strategy focuses on umbrella areas – the exportation. xv Major programs such e-governance, governance structure, the beneficiaries and e-commerce services, social and health care program, and the budget allocation to fund provision to citizens, NGO/youth portals, proposed strategies and recommendations. 6 Digital Morocco stands out from earlier e-Morocco 2) Focusing on e-government and strategies primarily for two reasons. The first is its public service provision that is user- emphasis on broadband, which for the first time is oriented; not only explicitly articulated but is the first pillar 3) Promoting computerization across in the strategy. The second is the country‟s small and medium enterprises to demonstrated commitment -- endorsed by His increase productivity; and Majesty King Mohammed VI -- to advance the 4) Supporting local actors to develop IT sector and engage cross-sectoral governance markets and build greater potential bodies to support ANRT in its regulatory mandate for sector exports. and oversee implementation of planned activities. The importance of interacting economic gains Built on the principals of creating momentum, with social needs supported by a multi-sectoral strategic prioritization, governance reform and governance body and an enabling environment smart resource distribution, and long-term action resonates in the strategy set forth by the planning, Digital Morocco is designed around four Moroccan government. (Figure 2-4) demonstrates strategic priorities: the conceptual visioning of these aforementioned components, and how the country sees the 1) Expanding citizen access to objectives fit in to meet its goal to place itself on broadband with an emphasis on the forefront of the ICT field. knowledge; Figure 2-4: Digital Morocco vision for the advancement of ICT in Morocco (Source: Digital Morocco 2013) 7 3 The broadband market 3.1 Background result of Law 29-06, the incumbent Maroc Telecom Broadband became available to the Moroccan was created as a limited liability company and public via the introduction of ADSL in mid-2003, partially privatized in 2001 when 35% was sold to and users had options in obtaining high-speed the French company Vivendi.xviii Since then there Internet at speeds ranging from 128, 256, 512, or was an additional sale to Vivendi and in 2007, part 1024 kbit/s. At the time, the broadband market of Maroc Telecom was offered to the public consisted of ADSL and leased lines, which were through a listing on the Casablanca Stock sold to businesses and ISPs. Today, ADSL is Exchange. At the end of 2010, Vivendi owned available at downlink speeds of 2, 4, 8, and 20 53% of the shares, the Kingdom of Morocco 30% Mbit/s. and the public 14%. Maroc Telecom is also a strategic investor in West Africa with holdings in The mobile market was built from the GSM incumbent telecommunication operators in standard later evolving to GPRS and EDGE and Burkina Faso, Gabon, Mali and Mauritania. then 3G through Wideband CDMA (WCDMA) and High Speed Downlink Packet Access Maroc Telecom is the only company that owns (HSDPA) with speeds ranging from 1.8 to 7.2 the copper fixed line telephone network (local Mbit/s. Fixed wireless technologies such as loop unbundling is available). It has a 49% share WiMAX xvii and CDMA 2000 1X EV-DO were of the mobile market, a 57% share of the overall also introduced. Internet market and a 45% of the 3G market. It offers ADSL, leased lines and fiber optic in the There are three major companies operating in the fixed broadband market and GSM and HSDPA in Moroccan telecommunications services sector the mobile market. It also provides IPTV service. market: Maroc Telecom, Méditel and INWI. As a Total Per 100 people 2010 June 2011 2010 June 2011 Population 31,851,000 32,187,000 — — Fixed telephone subscriptions 3,749,364 3,646,318 11.9 11.3 - of which fixed wireless 2,493,336 2,383,290 7.9 7.4 Mobile subscriptions 31,982,279 34,975,076 101.5 108.6 Total Internet subscriptions 1, 866,963 2,345,725 5.9 7.3 - of which ADSL 497,640 527,016 1.6 1.6 - of which 3G 1,366,472 1,816,792 4.3 5.6 -- of which data cards … 1,281,616 … 4.0 Total broadband (ADSL + 3G) 1,864,112 2,343,808 5.8 7.3 % of households 2010 Households with Internet access 25 Households with a PC 34 Households with a mobile phone 84 Households with a classic (wired) fixed line 13 Households with a fixed wireless line 29 Households with electricity 92 (2009) Households with a television 90 (2009) Households with a satellite dish 65 (2009) Table 3-1: Key ICT indicators (Source: Adapted from ANRT, HCP, Les Indicateurs sociaux du Maroc, 2009) 8 Until the year 2000, Maroc Telecom was the sole operator providing telephony and Internet Internet subscriber market share services in country with the exception of a limited number of small-scale ISPs.xix After being awarded the second GSM license in 1999, Méditel began to operate on March 2000 leading to a major INWI evolution in Morocco‟s mobile history. Méditel 24% original owners were Portugal Telecom, Telefónica (Spain) and local investors. Portugal Maroc Telecom and Telefónica sold their shares in 2009 Telecom and the following year France Telecom bought 40 Méditel 57% percent.xx The two local shareholders are Caisse de 19% Dépôt et de Gestion (CDG) and FinanceCom.xxi Méditel‟s offerings include corporate leased line and fiber access, GSM and HSDPA mobile and WiMAX. In June 2011, its mobile market share was 32% and its 3G market share stood at 24%. Figure 3-1: Internet market shares, June Rebranded in early 2010, INWI is also referred to 2011 (Source: ANRT) as Wana Corporate. Formerly a subsidiary of France Telecom, Wana Corporate became the third operator when it was awarded a landline license in 2005 under the name of Maroc Connect. 3G market share It was awarded a 3G license in 2006 and later a GSM mobile license. In 2009, 31% of the company was opened to a joint venture between the Zain Group and Al Ajial Investment Fund Holding leading to a rebranding of Wana INWI 31% Corporate to INWI.xxii The company offers leased Maroc lines and fiber for corporate clients, ADSL Telecom (through local loop unbundling), CDMA 2000 1x 45% fixed wireless, EV-DO broadband and GSM mobile. Its share of the fixed market (copper line and limited mobility wireless subscriptions) stood at 66% in June 2011 with its mobile market share Méditel at 19% and its share of the 3G market at 31%. 24% 3.2 International connectivity The country‟s geography with over 3,000 kilometers of coastline facing both the Atlantic Figure 3-2: 3G market share, June 2011 Ocean and Mediterranean Sea ensures access to a 2011 (Source: ANRT) number of international fiber optic submarine gateway. INWI leases international bandwidth cable systems. Maroc Telecom obtains access to mainly through operators in Spain. international bandwidth through two gateways in Casablanca and Rabat, and four submarine fiber During 2002 – 2010 Morocco increased its optic cables: SMW3, Estepona-Tetouan, Eurafrica international bandwidth capacity from 200 Mbit/s and more recently Atlas Offshore. In addition, to 75,000 Mbit/s, with 25 percent increase in the Maroc Telecom is investing in a new fiber optic last year alone. In 2010, there was 2,461 bits per network to connect its operations in Mauritania, person in Morocco, higher than Algeria and Burkina Faso, Gabon and Mali. xxiii Since 2003, Egypt, similar to Jordan but significantly below Méditel has been using its own international Tunisia (Table 3-2). 9 operational study to assess the feasibility and cost Gbit/s Bits per second per person of running 500 kilometers of fiber and then proposing to the three operators that they share Country 75 percent of the cost (25 percent each) with 2010 2008 2009 2010 ANRT paying the remaining quarter and selecting Egypt 94 348 1,143 1,196 one to manage the network. If agreement can only be reached with two operators, an alternative Jordan 15 833 1,899 2,581 strategy would be a one third cost share. Morocco 73 861 1,704 2,461 3.4 Penetration of broadband Algeria 35 98 601 1,164 3.4.1 Wireline broadband Tunisia 50 1,170 2,830 5,096 The fixed infrastructure in Morocco's delivery of broadband to the home is based on the copper network that was inherited by Maroc Telecom Table 3-2: International Internet bandwidth from ONPT. With the introduction of ADSL in (Source: ANRT and regional regulatory 2003, there came new Internet billing options that authorities) made access more affordable than traditional dial- up, and hence led to an accelerated rate of take up. 3.3 In-country backbone infrastructure At the end of December 2003, four percent of Internet subscriptions were ADSL. This figure As the incumbent, Maroc Telecom has the widest jumped to 61 percent by the end of 2004, and coverage of fiber in country with a 24,440- continued to grow until the introduction of kilometer network.xxiv With the awarding of their mobile broadband. Narrowband access has fixed licenses in 2005, Méditel and INWI have the decreased to a negligible amount accounting for option to either build their own backbone or lease less than 1,000 subscriptions by June 2011. Fiber infrastructure from others. This includes utilities to the premises is limited to mainly commercial such as the Office National d’Électricité (ONE) with use with home fiber access basically non-existent. nationwide coverage of 4,000 kilometers of fiber Broadband via cable modem never developed in and the Office National de Chemin de Fer (ONCF), Morocco due to a preference for direct to home the national railway operator, which has 1,100 km satellite for the delivery of multichannel television. of fiber.xxv Leased lines accounted for 1,003 Internet There are also alternative wholesalers such as the subscriptions in June 2011 but have been Marais Group (via its subsidiary Finetis Maroc) dropping. Maroc Telecom started offering leasing having deployed 1,200 km of fiber in 2008 lines in 1995 and at the time lines were copper. currently available for use.xxvi For example, INWI Today, leased lines are all fiber but in time entities leases fiber from ONE and Marais. In 2006, that were leasing started switching to ADSL. Méditel established a long-term partnership with Several reasons can explain the declining figures: i) ONCF to construct fiber optics along the rail The introduction of static IP addresses to ADSL connecting major cities in Morocco and has subscribers in 2005 which until then were installed around 2,500 kilometers of fiber available only via leased lines, 2) around the clock backbone to support its mobile base stations and service guarantee with ADSL subscriptions, fixed wireless systems. inspiring greater confidence among customers, With concerns that the current infrastructure is and 3) cost of leased lines are high compared to limiting or controlled tightly by the incumbent, ADSL lines. However, government agencies and there are high-level discussions led by ANRT big banks continue to see value in renting fiber among various institutional actors regarding optic lines to run Wide Area Networks (WAN) as deployment of new cables. Since the cost of do other businesses who want to control their deploying new fiber cables is prohibitive, own servers directly. improving existing networks is always an option By June 2011, there were 527,016 ADSL but reaching rural and remote areas still without subscriptions in the country, almost all of which coverage remains a problem. At the time of this are provided by Maroc Telecom. The rate of report, ANRT is planning to carry out an 10 ADSL subscriptions grew rapidly following launch keeping the price stable. In July 2011 Maroc with penetration reaching 1.5 percent of the Telecom removed the 1 Mbit/s connection and population by 2007 (Figure 3-3). Since then today the entry-level bandwidth a subscriber growth has been negligible due to the impact of receives is 2 Mbit/s. the introduction of 3G. As demand for services The incumbent, Maroc Telecom had a monopoly that require greater bandwidth and speed over the fixed infrastructure network until landline increased, ADSL has experienced a slightly licenses were allocated to Méditel (the second upward trend recently. This might continue if the operator) and Maroc Connect (which later became environment and infrastructure is right. This is Wana Coporate and now INWI) in 2005. especially true with enterprises that require fixed However they choose not to invest in wired technology to operate effectively. Nevertheless, telephone lines. In order for the other operators the long-run potential for ADSL broadband will to offer broadband using ADSL they have to inevitably remain constrained due the limited purchase it through local loop unbundling which number of wired telephone lines. Only two in five did not go into effect until 2007 (partial)/2008 households have a “fixed� telephone line and this (full), and is still very limited. When Méditel and number is inflated since it includes fixed wireless Wana received their landline licenses, ANRT was subscriptions. Just 13% of households have a keen to have them invest in fixed infrastructure; classic copper-based fixed line. however, the financial burden was much higher than investing in wireless networks. The return on investment for deployment of large-scale, As of March of 2011, the majority of ADSL intensive civil works is not apparent, and subscribers access at speeds between 1 and 4 continues to be a challenge today especially with Mbit/s, much faster than mid-2008 when most the mobile market being so robust. For this were well below 1 Mbit/s (Figure 3-4). One reason, ANRT is exploring incentives for the reason is the need for bandwidth is increasing as operators to further invest in building fixed users become more interested in downloading networks. photos, videos, etc. On the other hand, the incumbent has been increasing bandwidth while 3.4.2 Broadband on the move ADSL Subscriptions Per 100 People Distribution of ADSL subscriptions by speed, % 600000 1.8 1.6 1.6 1.5 1.5 1.5 1.6 20 Mbit/s 500000 527016 1.3 1.4 497640 482791 476414 474561 8 Mbit/s 400000 1.2 390834 1 4 Mbit/s 300000 0.8 0.8 Mar-11 2 Mbit/s 248011 200000 0.2 0.6 Mar-08 0.01 1024 kbit/s 0.4 100000 62960 2712 0.2 512 kbit/s 0 0 <=256 kbit/s 0.0% 20.0% 40.0% 60.0% Figure 3-3: ADSL subscriptions Figure 3-4: ADSL distribution by speed, (Source: Adapted from ANRT) March 2008 and 2011 (Source: Adapted from ANRT) 11 Distribution of broadband subscriptions, Morocco 3G subscriptions per 100 people, 2010 3G ADSL Libya 100% 90% Saudi Arabia 80% 70% Bahrain 1,655,499 1,366,472 60% 707,137 50% Morocco 40% 30% Egypt 268,131 20% Tunisia 42,729 10% 0% 0 2006 2007 2008 2009 2010 Mar. Algeria 2011 0.0 5.0 10.0 15.0 20.0 Figure 3-5: Distribution of broadband subscriptions, Morocco (Source: Figure 3-6: 3G subscriptions per 100 Adapted from ANRT) people, selected economies, 2010 (Source: Adapted from ANRT, GSM, TRA Morocco was one of the first countries in the Bahrain, CITC Saudi Arabia) MENA region to award 3G frequencies in 2006. up almost three quarters of all broadband Unlike most other countries that awarded 3G connections in 2010 (Figure 3-5). spectrum through an auction, Morocco chose a The number of 3G subscriptions in Morocco beauty contest, resulting in lower costs for stood at 4.3 per 100 people in December 2010. It operators. Spectrum was awarded to a new is difficult to make comparisons to peers due to operator, shaking up the existing duopoly and definitional issues and the lack of data. Among triggering intense competition in the mobile MENA countries for which data is available, broadband market (Box 3-1). As a result, mobile wealthier upper income nations such as Bahrain, broadband, which launched in 2007, surpassed Libya and Saudi Arabia have a higher 3G fixed broadband connections by 2009 and made penetration than Morocco (Figure 3-6). However, Speeds, kbit/s Usage, Average MB / Month Average Peak 450 12000 400 350 10000 300 8000 250 200 6000 150 4000 100 50 2000 0 0 Egypt Morocco Kuwait Qatar Saudi Arabia Egypt Morocco Kuwait Qatar Saudi Arabia Figure 3-7: Speeds and usage of mobile broadband networks, Q1 2011 (Source: Akamai, State of the Internet 1st Quarter, 2011 Report) 12 except for Libya, Morocco had the highest 3G outside the range of 3G, speeds drop to 2G penetration among North African countries (by technologies (GPRS/EDGE or CDMA 2000 1x). the end of 2010, Algeria and Tunisia had yet to commercialize mobile broadband according to the 2nd 3rd GSM Association).xxvii Operator Generation Generation Technology Technology It is revealing to compare the assessed speed and MAROC 6,336 3,099 TELECOM usage of mobile broadband networks in Morocco MEDI TELECOM 3,500 1,000 with peer countries. According to monitoring of WANA mobile networks in five MENA countries carried 1,939 1,635 CORPORATE out in the first quarter of 2011, users in Morocco TOTAL 11,775 5,734 consumed the most data on a monthly basis (414 MB) (Figure 3-7, right). This is a reflection of the Table 3-3: Number of mobile base stations, operator‟s liberal mobile data consumption 2011 (Source: ANRT, July 2011) policies. Further though Morocco was not top- ranked for average speeds, it did rank first for peak speeds with bandwidth surging up to 9.8 3.5 Retail broadband prices Mbit/s (Figure 3-7, left). This is somewhat surprising given that the highest speed advertised Moroccan retail prices for fixed broadband are by Moroccan mobile operators is 7.2 Mbit/s. competitive compared to other countries in the region. In a benchmarking survey covering 200 Currently two variations of 3G broadband ADSL services across 18 Arab countries, Morocco technology are used in Morocco. Maroc Telecom had the lowest prices for low and medium speeds and Méditel have deployed WCDMA with and the second cheapest for very high speed (after HSDPA extensions whereas INWI uses CDMA Saudi Arabia). xxviii Maroc Telecom‟s entry-level 2000 1x EV-DO technology. Méditel has a ADSL package provides the highest speed and WiMAX network used to offer fixed wireless lowest prices compared to other Arab countries broadband services. According to ANRT‟s (Table 3-4). Also, it is the only Arab operator General Orientation Note for the sector, 4G LTE outside the Gulf that offered high-speed options spectrum will be allocated prior to 2013. (i.e., > 15 Mbit/s). Overall Internet subscriptions grew 300 percent in less than three years largely due to 3G. Growth In respect to 3G prices, there are both prepaid might be even greater if 3G coverage was higher. and postpaid options (Table 3-5). Ninety six Although 2G networks cover over 95% of the percent of the population use pre-paid tariffs that population, the rate for 3G is much lower (Table tend to be structured around duration (one day, 3-3). For example, while Maroc Telecom covers one week or one month). In respect to postpaid, practically the entire population with 2G the pricing differences revolve around the download corresponding figure for 3G was 46.4% coverage speed of the package. Maroc Telecom has a in 2010. When mobile broadband users are relatively liberal download limit (5 GB per month); Band-width Algeria Jordan Tunisia Moroc (Down-link) Egypt co Entry level 31.76 27.26 59.51 23.53 38.24 > 256 kbit/s (256 kbit/s) (256 kbit/s) (512 kbit/s) (256 kbit/s) (512 kbit/s) 4 Mbit/s N/A N/A 102.27 46.04 86.04 > 15 Mbit/s N/A N/A N/A 136.07 N/A (20 Mbit/s) Table 3-4: Regional comparison of ADSL residential pricing, 2011, US$. Note: Moroc Telecom quotes the following ADSL rates to its customers: 2, 4, 8, 20 Mbit/s at 99, 149, 199, 499 MAD (12.54, 18.87, 25.21, 63.21 US$) respectively. (Source: Adapted from Teligen) 13 Pre-Paid (Orange) (Orange) Duration in Maroc Méditel INWI (Mobinil) Telecom Jordan Tunisia Maroc Egypt days Telecom 1 MAD 10 MAD 10 MAD 20 ($1.27) ($1.27) ($2.53) 7 MAD 50 MAD 50 MAD 70 Prepaid (one month validity) ($6.33) ($6.33) ($8.87) $22.0 $10.1 Price 1 $25.53 2 $9.90 30 MAD 200 MAD 200 MAD 180 unlimite ($25.33) ($25.33) ($22.80) GB included 5 d 0.5 1 Monthly subscription (voice and data) Theoretical Bandwidth Maroc Méditel INWI speed Telecom (Mbit/s) 7.2 0.5 7.2 10.5 1.8 N/A MAD 139 N/A $20.2 ($17.61) Price per GB $4.40 N/A 4 $9.90 3.6 MAD 99 MAD 245 N/A Price per (US$12.53) ($31.03) Mbit/s $3.06 $51.06 $1.41 $0.94 US$ 7.2 MAD 199 MAD 419 N/A $22.0 $14.0 (US$25.21) (53.01) Price 1 $12.64 $8.43 3 GB included 7.5 5 1.5 2.5 Table 3-5: Morocco 3G tariffs, September 2011 Theoretical (Source: Adapted from operator websites) speed (Mbit/s) 7.2 3.6 7.2 21.1 if it is exceeded then the user‟s speed is reduced. Price/GB $2.93 $2.53 $5.62 $5.61 Méditel offers unlimited data explaining its higher Price/Mbit/s $3.06 $3.51 $1.17 $0.66 tariffs. INWI offers data-only postpaid packages with speeds up to 1 Mbit/s so its offering is not Table 3-6: Mobile broadband prices, comparable to the other operators. September 2011, US$ (Source: Adapted from Maroc Telecom, Orange Jordan and Tunisia, Mobinil) Comparing mobile broadband prices to peer countries is difficult due to different pricing offers the second cheapest tariff compared to structures, speeds and options. Furthermore, there peers and the cheapest on a price per GB basis. is a difficulty with 3G speeds in that actual However like the prepaid option, Maroc bandwidth can differ dramatically from theoretical Telecom‟s prices are the highest on a price per speeds based on the user‟s device, coverage and theoretical speed basis. network capacity. In terms of prepaid mobile broadband, Maroc Telecom offers an unlimited option with a validity of one month. However the In respect to prices for bundling of broadband speed is 0.512 kbit/s, lower than what peer services, both Maroc Telecom and Méditel offer operators in other countries advertise. On the triple play packages. Maroc Telecom provides a other hand the peer operators have data caps after package of television (IPTV), broadband (ADSL) which speeds are reduced or users have to pay for and telephony (PSTN and VoIP) (Table 3-7). By additional downloads. Although the Maroc December 31, 2010, Maroc Telecom recorded Telecom prepaid price is the most expensive 40,000 households with IPTV, which is a fixed compared to peers, on a data download basis it line TV service launched in 2006. xxix Given that could be considered the cheapest since it offers Méditel does not offer fixed line broadband, its unlimited usage with no penalty (Table 3-6). For package uses 3G voice and data coupled with monthly mobile broadband using USB satellite television. connections to link a laptop, Maroc Telecom 14 Maroc Telecom Méditel BOX SILVER BOX GOLD BOX HD-BOX Monthly Price MAD 299 (US$37.21) MAD 349 (US$43.42) MAD 389 (US$48.41) MAD 249 (with VAT ) (US$ 31.54) ADSL Speed 2 Mbit/s 4 Mbit/s 8 Mbit/s 3.6 Mbit/s Table 3-7: Bundled offers, September 2011. Note: Maroc Telecom packages include IPTV with two channels and the option to purchase additional ones, a wired telephone line and VoIP service with unlimited free calls to Maroc Telecom fixed lines. Meditel’s package includes free calls between other HD-BOX subscribers. (Source: Adapted from Maroc Telecom and Meditel) The option of holding a beauty contest rather than an auction to award licenses is attractive for governments interested in assessing each applicant’s vision and long-term business plan before making final selections. In a beauty contest the request for proposals focuses on technical criteria rather than price, and includes questions that request prospective operators to address equity in coverage especially in rural areas, job creation, service provision, and to also provide strong indication of financial viability. Further, the option of the beauty contest provides space for new entrants or aspiring operators who are not as well financed to compete against incumbents that may be better positioned financially and with a stronger customer base. Although a beauty contest may be perceived as less transparent than an auction, a significant benefit is that winners typically do not pay the large amounts that an auction entails, which theoretically should result in lower prices for consumers. In the case of Morocco, ANRT ran a beauty contest in 2006 to award three 3G licenses and the results were astounding – mobile broadband subscriptions increased 530 percent between 2007 and 2008. Today, mobile broadband accounts for three quarters of the country’s broadband market share. As it wished to expand competition in the marketplace and push for universal access, ANRT designed a proposal that would ensure that the license would be awarded to the best technical and quality oriented bid. In addition to the technical requirements, a fixed license fee was set at MAD 360 million plus an additional MAD 36 million for the re-organization of the radio frequencies. In the end, bidders included Maroc Telecom, Méditel, WANA (Maroc Connect at the time) and Maroc Nejma (a Kuwait-based company). The evaluation was based on four criteria: 1) deployment of infrastructure, 2) service quality engagement, 3) diversity, innovation, and incentive packages to customers, and 4) financial viability of bidder and shareholder relations. The aspiring operator WANA made a great impression and was ranked first, followed by Maroc Telecom and Méditel. The introduction of a third operator in the market reaped benefits for both ANRT and the newly licensed company. WANA’s launch of its restricted mobility service (branded as Bayn) in 2007 and full mobility service (branded Wana Mobility) in 2008 expanded mobile broadband as well as its own public reach and penetration. So large was this achievement, however, that WANA became a victim of its own success. When the company launched WANA mobility using CDMA technology as opposed to the GSM standard Méditel and Maroc Telecom use, they also followed the policy of giving away free phones (two for the price of one). The promotion was so popular that WANA sales exceeded expectations and the company faced two major challenges: 1) a still under-developed infrastructure that could not handle the burden of so many users at once, and 2) technology incompatibility resulting in unexpected roaming issues (most neighboring countries were using GSM). Eventually, many of the customers switched back to Maroc Telecom and Méditel and the surge of customers leveled. A lesson learned and improved upon – since 2010 WANA was recapitalized through new investments by the Zain Group, changed management, and adopted a new brand name ―INWI‖ phasing out WANA mobility and upping its sale figures. INWI currently claims the greatest 3G coverage, providing CDMA2000/EVDO for all new customers and 1X (an IMT-2000 technology but slower) where coverage areas have not yet been enhanced with EVDO technology. Source: INWI Interview, July 2011; ANRT. 20 July 2006. Rapport d’instruction - Attribution de licences de 3ème génération en vue de l'établissement et l'exploitation de réseaux publics de télécommunications au Royaume du Maroc. Box 3-1: Awarding 3G in Morocco: The story behind INWI’s success 15 4 Creating an enabling environment 4.1 Overview  Unfair cross-subsidization where an operator The World Bank views broadband as an uses profits from one service to subsidize ecosystem consisting of various components that losses in another service. needs to be in harmony for the broadband market The document purposes to protect against the to be healthy and sustainable. xxx An enabling potential domination of one operator over the environment is necessary to promote supply-side other, especially the one with greatest cliental growth as well as to facilitate demand. The network and financial leverage. The above Moroccan government has implemented prohibitions of practices would cover voice, data, regulations to open up the local loop in an effort messaging and other data transmission services to create greater supply of broadband connections over telephone, mobile and data networks. and has also developed a number of programs to increase access. It has also promoted e- 4.2.2 Local Loop Unbundling Government through several strategic plans with In an effort to promote competition, ANRT the aim of developing e-services to encourage prioritized the issue of local loop unbundling as citizens and businesses to interact with it online. early as 2004 through a decision resulting in negotiations with the incumbent Maroc Telecom 4.2 Regulation which needed to provide technical specifications 4.2.1 Tariff guidelines about its legacy copper infrastructure and pricing At the time of writing this report, a set of tariff options for operator access. However it was not guidelines produced by ANRT in August 2010 is until an order from the Prime Minister that dates still ongoing with the aim of establishing a were set for implementation of local loop regulatory framework around retail pricing, paying unbundling – with partial unbundling expected by special attention to the newest operator which January 2007 and full unbundling by July 2008.xxxii may not benefit from the same reach and A final agreement on full unbundling was reached longevity as the incumbents. With these on December 27, 2007 after a series of guidelines, ANRT will be monitoring four major correspondence between ANRT and Maroc practices that it will consider unlawful:xxxi Telecom. This also included new modifications to pricing of partial unbundling.xxxiii  The squeeze effect resulting in tariffs that cannot be replicated by competitors in a Under ANRT oversight, the monthly costs that manner that will be economically viable. were decided upon for 2008 were competitive and It is strategy by which a vertically favored affordable operator access. The tariff integrated operator sets its tariffs below structure is multi-layered, including costs relating the cost level of a reference operator. to:  Predatory pricing practiced by an operator  Maroc Telecom intervention in case there that exposes the competition to a is a problem, reduction of their margin and as such is  technical issues specific to shared access, apt to exclude them from the market.  the creation of specific applications in  Abusive bundling is taking advantage of the order to access the local loop, ability to provide the sale of two or more different services that cannot be  infrastructure (or entities) within Maroc replicated by competition, affects the Telecom to implement the local loop, and interest of the client, comprises the  billing access to the local loop. commercialization of competitor offers, With the final agreement, Méditel and INWI‟s and reduces demand for competitor expected monthly cost to access high frequencies products. of the unbundled lines (partial) was estimated at MAD 35, 30 percent less than what was initially agreed upon for the year 2007. For full 16 Program Objective Budget Time frame GENIE Equipping 9,260 educational institutions with MAD 2 billion of 2009-2013 multi-media rooms and Internet which MAD 1 Target: 6 million students billion from is from the USF NAFID@ Providing computers with mobile broadband MAD 216 million 2009-2012 to teachers (including support Target: 150,000 teachers from the Mohammed VI Foundation) GENIE –SUP Provision of digital equipment to universities MAD 120 million 2011-2012 and training institutions. INJAZ Provision of computers with mobile MAD 246 million 2009-2013 broadband to senior secondary school students Target: 80,000 students CAC Creation of community access centers that MAD 80 million 2009-2013 provide access to ICT Target: 400 centers Table 4-1: Universal Service Fund programs (Source: Adapted from ANRT) unbundling, the estimated cost was MAD 100, extending citizen access to broadband is viewed as lower than what Maroc Telecom charges its direct an essential ingredient for social transformation. customers and what many incumbents in Europe As mentioned earlier, a Universal Service Fund were charging their competitors. (USF) was created in Law 55-01 requiring all Additionally, Maroc Telecom was required to operators to allocate two percent of revenue. This provide information about its subscribers as well meant that a fund would be available for as specifications that pertain to its equipment sites incentivizing infrastructure development in enabling competitors to have the option to either remote and hard to reach areas. If operators invest rent lines or share the physical infrastructure.xxxiv in those areas on their own, the amount they This would give flexibility to the competitors in spent is reduced from their USF contribution terms of lowering costs by running their own lines (“Pay or play�). through shared infrastructure. While these In 2007, the “PACTE� program (2008-2011) was measures are deemed encouraging for approved by a special commission in charge of competitors, the impact of local loop unbundling universal service. The program, which is the on broadband has so far been limited. As of June largest financed by the USF intends to address 2011, Maroc Telecom had a 99.8 percent share of coverage of 9,263 locations classified as “white the ADSL market. areas,� of which 50 percent are listed under the In addition, while local loop unbundling can be National Initiative for Human Development useful policy for promoting broadband (Initiative Nationale pour le Développement Humain, competition, in the case of Morocco its relevance INDH).xxxv These areas belong to 55 regions and is also restricted. There are only 1.2 million 841 communes of the territory, including 2.3 copper-based fixed lines of which 40% are already million habitants or approximately 17% of the used for ADSL. rural population in Morocco. The budget for this is activity is estimated at MAD 1.44 billion. By the 4.2.3 Universal access end of the PACTE program it is envisaged that A key objective of ANRT and the Ministry of essentially all populated areas will have mobile Industry, Commerce and New Technologies has coverage, up from 97.5% of the population in been the promotion of universal access. It is also a 2010.xxxvi fundamental strategy of Digital Morocco where 17 For the period of 2008-2013, the remaining  Finally, social media has pushed allocation of the USF (around 60 percent) is Morocco‟s ahead many of its neighbors in disbursed across five targeted programs most of broadband usage and as such reveals a which relate to provisioning schools and students niche population ready to be networked with ICTs. In addition there is a program to create and capitalized. 400 access centers as called for in Digital Morocco (Table 4-1). According to ANRT orientation note, In contrast to entertainment activities, e- it is anticipated that a study will be launched by commerce usage by consumers in Morocco is low. the end of 2011 to establish guidelines for the next Only six percent of Internet users take advantage stage of the program development including plans of online banking or ordering goods over the for Universal Service Fund during 2012-2016 Internet. In respect to purchasing goods over the Internet, only 4% of surfers do this. The main 4.2 Applications reason given is that there is no need. This is tied to 57% who say they do not purchase online The majority of those using the Internet in Morocco are doing so for entertainment purposes because they cannot “touch� the product. Security or for communication via email (Figure 4-1). is also a concern with almost seven out of ten users. Exchanging videos and music, social networking and Internet telephony are main uses driving There are several domestically developed online people to broadband, averaging a combined payment services for Moroccan Internet users. increase of 29 percentage points in 2010. Maroc Telecommerce, an initiative of Moroccan There is no denying that social media is driving banks, provides an e-commerce platform where users can make online purchases and merchants Internet usage in the Middle East, particularly given the recent political events. According to a can sell products and services. Businesses use the 2011 study, in UAE and Qatar, almost 30 percent service to open online stores after passing security of the population is on Facebook. xxxvii Egypt clearance and demonstrating financial capability in added two million Facebook users in four months. order to provide users with confidence when making purchases. Mobicash introduced in 2008 by In Morocco, 67 percent of the population that Maroc Telecom is a mobile payment system. goes online does so for social networking. This is Users can transfer and receive money from others, up almost 20 percentage points from 2009 and today the country has the third highest number of pay their Maroc Telecom bills or recharge their Facebook users in the Arab world (Figure 4-2). phones and use their handsets to make purchases from authorized merchants. With 79% of Moroccan Facebook users between the ages of 15-29, there are three considerations 4.3 e-Government when thinking about the Internet market: The Moroccan government has promoted the  The first is that given that most Internet vision of ICTs for transforming public users in Morocco are on some kind of administration for a number of years. The social networking platform with rich government can be a leader by computerizing its multimedia features, demand for better own operations as well as providing online quality in service will increase. services to stimulate broadband demand. A  Second, the majority of users driving number of initiatives have been launched but broadband are between the ages of 15 and progress has been slow. One challenge has been 29, an attractive audience for broadband incentivizing the bureaucracy to adopt a greater market opportunities but also in terms of public service perspective. Successful projects finding ways of increasing usage of include those that have been able to overcome applications that impact their livelihoods. ingrained resistance through a proactive public administration such as in the city of Fez (Box 4-1) 18 Figure 4-1: Internet uses, Morocco, 2010 (Source: ANRT) Egypt 24% Other Arab countries 25% Algeria Saudi Arabia 7% 15% Tunisia 8% UAE 9% Morocco 12% Figure 4-2: Share of Facebook users, Arab region, April 2011 (Source: Dubai School of Government) Morocco developed a four-year e-government leverage on government progress to date for plan called IDARATI (Informatisation des example in establishing a national portal and Départements Administratifs et leur mise en Réseau passing supporting legislation. By 2010, there were Adéquate via les Technologies de l'Information) covering 370,000 visits to the citizen public administration the period 2005-2008. xxxviii It was intended to portal and some 200 forms online.xxxix 19 Figure 4-3: Moroccan e-Government targets (Source: Digital Morocco 2013) E-government is a key pillar of the Digital Morocco digitizing public services, especially if other strategy. Concrete targets include increasing the mediums of delivery are phased out before online number of e-government services from 16 in 2008 access is universal. to 89 by 2013 (Figure 4-3). Additionally, the government is anticipating that by 2013 all 4.4 Moroccans online enterprises generating revenue of more than MAD Morocco has experienced major growth of the 20 million annually will be using transactional Internet over the last decade, reaching an services. Other targets include raising the estimated 14 million users by the end of 2010 or country‟s e-Government score in UN rankings almost half the population (Figure 4-4, top). When and increasing the number of public it reached one million in 2003, the majority were administration sites in the top Moroccan 100. accessing via cybercafés. The significance of these public spaces continues with 76 percent of users In order for the program to meet its objectives, a who access the Internet outside of the home governing structure was established with 15 doing so via a cybercafé (approximately 8 million flagship services to be implemented by 2011 and a users).xl As the country continued to push reforms timeline for the completion of all targeted 89 e- with Law 55-01 in 2004 and the liberalizing of Government services by 2013. The 89 e- fixed and cellular markets, the usage of Internet government services include 42 transactional, 30 expanded. In particular, the country experienced informational, and 17 infrastructure related its highest Internet growth rates between the applications. The focus is on delivery of years2007-2009 which coincided with the transactional processes given that e-services deployment of 3G technologies by the three require direct interaction with citizens and operators. As a result, when compared to the rest enterprises to achieve their full utility. of the region, the percentage of the online It will be important to ensure that services population in Morocco exceeds most countries in available online are also accessible in some the MENAregion including neighbors Egypt and alternative form so that all segments of population Tunisia (Figure 4-4, bottom). benefit. There is a risk of exclusion when 20 Employees of the Bureau d’État Civil (BEC) in the Moroccan city of Fez previously had to search for birth certificates through hundreds of handwritten records and transcribe by hand information from the original birth certificate to provide citizens with copies needed for applying for a job. It could take hours, if not days, to fill this request along with the many others received that day. Applying for these certificates could take days. Although under-the-table bribes were common, the process could still be unbearably long. Those who finally received their documents were often so elated that they fail to double-check the handwritten copies, resulting in a return visit to the BEC to fix poorly transcribed entries that had not been accepted at their final destination. In an effort to remedy this problem the local Al-Akhawayn University developed the e-Fez Action Research Project, funded by Canada’s International Development Research Centre (IDRC) to design, develop, and implement an e-government system to automate delivery of citizen-oriented services. With a two-year grant from IDRC, the university had to prioritize. It opted for automating one of the most widely used services in BEC offices: providing birth certificates. A pilot project, undertaken in partnership with the Université Laval in Québec and in collaboration with the Fez municipal government, was planned for the Agdal district. Its BEC office was set up in 1986, and had registered approximately 15,000 citizens. The research team soon discovered that automation required more than they had bargained for. Every birth certificate in the Agdal office would have to be digitized. This meant installing the necessary infrastructure in the office, which previously had no computers or Internet connections. Even the electrical service was prone to interruptions. The municipality of Fez played a major role by installing new electrical lines, Internet connections, and computers; the project provided cables and servers. The municipality was so highly motivated that it began automating two other offices at the same time. The team then needed to find a way to digitize the existing records. They tried scanning, but the error rate was 60%. The only viable alternative was to enter the information on each birth certificate into a database. The result was unprecedented. For the first time ever, Moroccan citizens’ records were digitized. Data entry began in February and ended in November 2005. Citizens now have three choices for obtaining a birth certificate. Rather than wait days to receive a handwritten copy, they can provide office staff with their serial number and the computer system generates and prints a copy of the certificate. The impact of the e-Fez Action Research Project has been far-reaching. At the local level, some 15,000 registered citizens now have access to government services instantly. Services are transparent and take less time and effort. The project generated collaboration between various sectors of society in Fez. An academic institution, citizens, elected officials, government employees, and an international organization worked together to make better local governance a reality. The project has won widespread recognition, winning Morocco’s National Prize for Electronic Administration: e-Mtiaz 2006. And in 2007 the project earned a Technology in Africa Award (TIGA) and a United Nations Public Service Award (UNPSA). Building on e-Fez, Al Akhawayn University launched another project with IDRC and IT+46 of Sweden and with support from the city and the ANRT to deploy a WiMAX network interconnecting government offices and providing public access through hotspots. The Wireless Metropolitan Area Network @ Fez (Wman@Fez) project is the first WiMAX community network in the country. It has been extended to several other towns in the Middle Atlas region. Adapted from IDRC, ―Fez: The e-capital of Morocco.‖ http://web.idrc.ca/uploads/user-S/12089602911E- Fez.pdf and ―Al Akhawayn Workshop Focuses on Innovative Project to Enhance Local Government with Wireless Networks.‖ News, November 24, 2010. http://www.aui.ma/PresidentsCabinet/News/news10/news10-index.htm Box 4-1: e-Fez 21 Thirty-four percent of households have personal computers and 25 percent of households have Internet users, Morocco 49 broadband access at home, significantly higher 14,000 50 than the two percent in 2004. Of the households 41 with Internet access, 78 percent use 3G with a 12,000 40 USB modem. Just over a fourth of households 33 with electricity but without Internet access 10,000 Users in Thousands Per 100 people envision having 3G in the next 12 months. 30 8,000 There are barriers to increasing Internet use that 20 22 are likely to constrain future growth such as the 6,000 20 15 lack of electricity in some rural areas. Another 12 4,000 barrier is cost with just over half of households 10 without Internet saying they cannot afford it. This 10,300 13,000 14,000 2,000 3 1,000 3,500 4,600 6,100 6,600 is mainly attributed to the price of purchasing a computer. A key obstacle is digital literacy with 0 0 almost half of households without Internet saying they do not see the utility and one quarter replying they lack skills to use it. This is mainly a problem with the older generation given that most of the Internet users Per 100 people, 2010 country‟s Internet users are young. While the Digital Morocco plan calls for providing Internet Morocco 49 access to all schools, it does not explicitly deal with digital literacy training for those no longer in Saudi Arabia 41 school. Thus digital illiteracy is likely to remain a bottleneck for increasing broadband access. Jordan 38 Tunisia 37 Egypt 27 Algeria 13 0 10 20 30 40 50 Figure 4-4: Internet users in Morocco and selected countries (Source: Adapted from ANRT and regional communications authorities) 22 5 Success and challenges Morocco was one of the first countries in the available. Middle East and North Africa region that At the same time, the impact of the programs institutionalized an independent regulator to implemented over the years has not always been govern and incentivize the market and introduce certain and there is limited evaluation regarding 3G technologies, in an effort to expand the quality and outcomes of increasing access. broadband access to the people. The framework Facilitating dialogue on deeper reform of the of Digital Morocco reinforces essential policies sector, intensifying the competitive environment, around access and content, a multi-stakeholder and demonstrating improvements in livelihoods governance body to oversee the process and a through ICTs are some of the key issues facing budget to finance activities. There is a monitoring ANRT, which is in the process of strengthening system via the regulator‟s Observatory where an its capacity to deliver on its mandate. The online platform is available for the public to access regulatory and political environment are only parts results and analysis of the market on a quarterly of an ecosystem; the business environment, the basis. production of content, exporting of broadband Government policies such as the introduction of enabled services, and the consumption of an additional operator and early awarding of 3G information are parts that are at times licenses through a beauty contest have impacted disconnected from each other. At the same time, Morocco‟s broadband market. Dial-up Internet while there are high expectations for ICT in the access has practically disappeared and speeds of country, Morocco‟s level of social and economic up to 20 Mbit/s are available with ADSL. Fixed development including more than two out of five broadband pricing is relatively low compared to people residing in rural locations, constrains peer countries. Mobile broadband has taken-off broadband diffusion and will be difficult to following allocation of the three licenses in 2006 change in the short-term. and accounted for over three quarters of the There are three overarching gaps that Morocco broadband market by mid-2011. Operators offer a faces when one considers the current state of variety of mobile broadband payment plans broadband in country: the need for well- ranging from one-day use to monthly balanced infrastructure, improved quality and subscriptions. Though difficult to measure affordability, and greater push for demand precisely because of different speeds and data driven services. These gaps are interrelated as consumption practices, mobile broadband pricing shown by the table below which illustrates the in Morocco is relatively inexpensive compare to its penetration of Internet access in Moroccan peers. Usage of mobile broadband is high households according to income and geographic compared to peer countries for which data is zone and the corresponding literacy rate. Monthly household income (MAD) 8,000- > 18,000 18,000 3000-8000 <3,000 High Density Zones 80% 35% 15% 2% 0% Medium Density 35% 15% 2% 0% Grey/White Zones (sparsely populated) 0% 0% 0% Literacy rate (%) 100% 95% 90% 55% 35% Table 5-1: Household Internet penetration rate by geographic zone and monthly income, 2008 (Source: Adapted from Digital Morocco 2013) 23 Penetration is reduced with the geographic 5.3 Greater push for demand driven location indicating the need for well-balanced services infrastructure. Penetration drops as income falls, Morocco has made tremendous strides in getting indicating the need for greater affordability. its population online. The number of Internet Finally penetration is less where illiteracy is high users has increased from 3.5 million in 2004 to 14 indicting the need for skills development in order in 2010. According to surveys many people are to use broadband services. using entertainment type applications. There is a 5.1 Well-balanced infrastructure need to channel that demand into other applications that can help improve livelihoods. Growth in the broadband sector in Morocco is This includes developing applications in driven by the mobile industry, in particular 3G. education, government and health that Today, over three quarters of broadband incorporate social network features to make them penetration is due to 3G and it has the promise to attractive and encourage user content creation. It reach populations otherwise neglected. Yet the also calls for private-public partnerships to explore overall country access rate remains low especially innovative ways of getting young people online to in low-density areas. And while all operators use search for jobs and economic opportunities 3G technologies, Maroc Telecom delivers 99 otherwise only accessible by a select few via percent of ADSL, through its historic control over personal connections. the wired telephone network. Local loop unbundling has been in effect since 2007 but At the same time there is a need to remedy the results are negligible. Operators must be digital divide in Moroccan Internet use. Most encouraged to share infrastructure to lower costs Internet users are young indicating a need to get in an environment where fixed networks are more people over thirty online. While government limited and wireless networks costs can be is focusing efforts on increasing school leveraged to help cover larger areas. In order for connectivity there is a pressing need to provide broadband diffusion to be successful significant digital literacy training to those out of school. efforts to improve backhaul is critical. This 5.4 Lessons learned and remaining includes deploying fiber deeper into rural areas. At challenges the same time, the level of electrification in rural areas needs to be boosted. These steps will require  Just under half the population uses the fresh and innovative thinking since purely Internet in Morocco, higher than other competitive solutions can only go so far in countries, and an impressive achievement addressing these problems. considering the relatively low literacy level. The widespread availability of 5.2 Improved quality and affordability Internet cafes and more recently a trend 3G has proven quite popular in Morocco and is towards home access with 3G has been a the main channel for broadband access. factor contributing to Internet growth as Nevertheless, there are looming quality concerns. has a youthful population. Most usage is One issue is inconsistent coverage with users currently towards entertainment. A shift is often switched to slower 2G speeds outside urban needed to make users become producers areas. Additionally, the popularity of social and access information that can help networking is resulting in growing mobile data them in their daily lives. usage that is starting to place a strain on mobile  The government‟s early decision to networks. Quality issues also affect fixed license of 3G through a beauty contest broadband particularly for subscribers who are not has boosted Internet penetration, with close to the exchange. household penetration tripling. The Affordability is a significant barrier. It is cited as challenge will be to expand access beyond the main reason people do not have computers or the one quarter of households that already Internet access at home in ANRT surveys. have it. Stimulating and filling demand Additional efforts are needed to make broadband will be challenging due to lack of adequate service and end user devices cost effective for coverage and electricity in rural areas, ordinary citizens. affordability constraints, and unawareness 24 about the benefits. There needs to be diversity of options beyond ADSL and focus on reducing prices and raising 3G. Morocco faces a situation where digital literacy, especially among the older fixed broadband options are essentially population. limited to ADSL because cable modem is  Enhancement of infrastructure is not a viable alternative (due to the fundamental. Mobile broadband coverage popularity of satellite television) and is not consistent across the country with where the cost of fiber installation for bandwidth often falling back to 2G local access is often prohibitive. A fresh speeds outside urban areas. At the same approach is needed including incentives time, the exponential growth in mobile for encouraging fiber deployment and broadband use is affecting quality. reviewing experiences of other countries Greater efforts are needed to expand with open access and flexible ISP laws. high-speed backbone infrastructure Inclusive and bottom up approaches throughout the country. Microwave could also stimulate local broadband technology is limited in its ability to development. One example is municipal support the exponential growth in mobile Wi-Fi (Box 5-1), where efforts in broadband. In that respect, operators Morocco have been constrained by need to upgrade their backhaul with fiber. various laws and regulations. These might  Innovative approaches are needed to be loosened to encourage alternative low- expand local high-speed access to increase cost solutions for broadband access. Global efforts to build community-based Wi-Fi networks have emerged as a solution for people to access free broadband. One such example is FON established circa 2007 in Madrid, Spain. 1 Today, the network has over four million hotspots in 24 countries. Morocco is the only country in the Middle East and North Africa region with members formally registered with the network. In 2007, Abdesselam El Omari, an IT entrepreneur based in Rabat heard of the newly established FON network. When Abdesselam contacted the company to join, he received four routers free of charge and was requested to keep one for himself while giving the remaining three to others with broadband connections and interested in becoming part of the movement. 1 As a member, he received an identifier that would allow him to connect to any FON wireless network around the world and could potentially make enough money to subsidize his monthly broadband connection costs if traffic was sufficient. This was made possible because the company also sold prepaid cards that would allow anyone to connect to the community network. Money generated by these cards would be split between the company and the owner of the router to which the prepaid card holder connects to at any given time. Abdesselam installed one router in his apartment and one in his parent’s house as they live next to the Hilton Hotel with promising potential for traffic. He gave the two other routers to friends in Casablanca. After speaking to a lawyer about this opportunity and his desire to expand it in country, he was dissuaded from continuing as it posed two types of legal problems:  The first challenge was in regards to his ISP and rules against reselling Internet access. Sharing was permissible but selling was not.  The second was related to fiscal issues and declaration of unauthorized income. Making money without declaring it and receiving VAT from users was problematic. As a result, Abdesselam stopped the service. While in principal, the network provided an alternative solution to accessing broadband the incentive model does not take into consideration local telecom regulations in regards to sharing versus reselling bandwidth. Also, the emergence of mobile devices to connect to broadband reduced the market base. Nonetheless, community-based Wi-Fi networks remains relevant where creative solutions are needed to provide broadband access in poorly served areas. Interview with Abdesselam El Omari, Rabat, July 2011. Box 5-1: Experimenting with Community-Driven Wi-Fi in Morocco 25 About infoDev infoDev is a global development financing program among international development agencies, coordinated and served by an expert Secretariat housed at the World Bank Group, one of its key donors and founders. It acts as a neutral convener of dialogue—and as a coordinator of joint action among bilateral and multilateral donors—supporting global sharing of information on ICT for development (ICT4D), and helping to reduce duplication of efforts and investments. infoDev also forms partnerships with public and private sector organizations who are innovators in the field of ICT4D. infoDev is housed in the Financial and Private Sector Development (FPD) Vice Presidency of the World Bank Group. For additional information about this study or more general information on infoDev, please visit www.infodev.org/publications. 26 Endnotes i This section draws on Haut Commission au Plan. Le Maroc en chiffres 2009. http://www.hcp.ma/downloads/Maroc-en- ii For the purpose of this study and unless otherwise noted, the Middle East and North Africa region constitutes the following countries: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Qatar, Tunisia, Saudi Arabia, Syria, West Bank & Gaza, and United Arab Emirates. iii Loi 24-96 relative à la poste et aux télécommunications. 7 August 1997. http://www.anrt.net.ma/fr/admin/download/upload/file_fr1818.pdf. The basic telecom law has had several amendments over the years. A consolidated version, Loi n°24-96 consolidée relative à la poste et aux télécommunications, telle qu’elle a été modifiée et complétée, is available here: http://www.anrt.ma/fr/admin/download/upload/file_fr1825.pdf iv SEPTI, 2000. Rapport de la Sous-Commission des Technologies de l’Information: Plan quinquennal 1999-2003. v The figure refers to the electrified areas only; the figure over entire population is 43 percent. vi ITU. 2011. Measuring the Information Society. The IDI is a composite index consisting of 11 indicators including access, use, and skills. http://www.itu.int/ITU-D/ict/publications/idi/2011/ vii World Economic Forum. 2011. Global Information Technology Report 2010-2011. http://www.weforum.org/reports/global- information-technology-report-2010-2011-0 viii ANRT. 2010. Annual Report 2009. ix ANRT. 2010. Note d’orientations générales pour le développement du secteur des télécommunications à horizon 2013. x World Bank. 2004. Morocco: Developing Competition in Telecommunications. http://go.worldbank.org/T4B5VCU0D0 xi Loi 55-01 modifiant et complétant la Loi 24-96 relative à la poste et aux télécommunications. 4 November 2004. http://www.anrt.ma/fr/admin/download/upload/file_fr1820.pdf xii A 2001 ITU report notes there was a “Lack of a clear separation between the functions and roles of the SEPTI and ANRT in the area of regulation; overlapping of functions, as noted by representatives of the State.� ITU. 2001. Effective regulation case study: Morocco. http://www.itu.int/itudoc/gs/promo/bdt/cast_reg/79125.pdf xiii Piot, Stéphane. 2011. National broadband plan in Morocco Approach and key findings to date presented at the Broadband Development in Morocco: Challenges, Policies and Regulation, using lessons learnt from South Korea, July 7, Rabat. http://www.anrt.ma/fr/content/main.php?id_page=116&id_sous_page=0&niveau3=0#. xiv Roland Berger. 2011. Acceleration in deployment of High Speed in new planning zones in Morocco presented at the Broadband Development in Morocco: Challenges, Policies and Regulation, using lessons learnt from South Korea, July 7, Rabat. http://www.anrt.ma/fr/content/main.php?id_page=116&id_sous_page=0&niveau3=0#. xv Ministry of Industry, Trade and New Technologies. 2007. E-Morocco 2010 Strategy: Accomplishments, Perspectives & Action Plans. xvi Maroc Numeric: Stratégie nationale pour la société de l’information et l’économie numérique 2009 – 2013. http://www.egov.ma/Documents/Maroc%20Numeric%202013.pdf xvii WiMAX is considered fixed in the case of Morocco however it can also be classified as mobile depending on the specific technology. xviii Maroc Telecom‟s formal name is Itissalat Al-Maghrib (IAM). For more information about the company see its web site at: http://www.iam.ma/Groupe/Pages/accueil.aspx xix Initially, ONPT rented out its bandwidth to ISPs through leased lines and the ISPs then sold dial-up services to customers. With dial up, customers were paying a connection fee in addition to minutes since their phone service was billed on a pay per use basis and this continued until the introduction of broadband. When Maroc Telecom was formed in 1998, it modified its policy and began selling services directly to customers making it difficult for smaller ISPs to compete. In 1999, Casanet was bought by Maroc Telecom which then became its Internet subsidiary Manara; Maghrebnet canceled its internet provision and only providing network services, Wanadoo Morocco a subsidiary of France Telecom eventually became Wana which was later absorbed into WANA Corporate, now INWI, and other internet service providers shut down, such as ELAN and Fusion. MTDS, one of the oldest ISPs in Morocco, was established in 1993 and continues to date. As a wholesaler, it buys bandwidth from the incumbent selling mostly to a select group of commercial customers, as well as providing network security, technical know-how, and ICT applications for social and economic development purposes. xx France Telecom. September 21, 2010. Méditel enters into a strategic partnership with France Telecom to become the value and innovation champion in Moroccan telecoms. http://www.orange.com/en_EN/press/press_releases/att00017093/20100920-Meditel and FTEUK(vdef).pdf. xxi Méditel‟s full name is Médi Télécom. For more on the company see its web site at: http://corporate.Méditel.ma/servletAccueil?tache=PageIndex# xxii For more on INWI see: http://www.inwi.ma/corporate xxiii TeleGeography. “Maroc Telecom‟s first phase of regional fibre backbone 60% complete.� February 20, 2010. http://www.telegeography.com/products/commsupdate/articles/2010/02/26/maroc-telecoms-first-phase-of-regional-fibre- backbone-60-complete/ xxiv Maroc Telecom. 2011. Document de Reference 2010. http://www.amf-france.org/DocDoif/txtint/RAPOSTPdf/2011/2011- 028400.pdf xxv Williams, Mark. 2010. Broadband for Africa: Developing Backbone Communications Networks. Washington D.C.: World Bank. http://publications.worldbank.org/index.php?main_page=product_info&cPath=&products_id=23786. 27 xxvi “Marais Groupe porte le capital de sa filiale Finetis Maroc à 20 MDH.� La Vie éco, November 5, 2009. http://www.lavieeco.com/news/economie/marais-groupe-porte-le-capital-de-sa-filiale-finetis-maroc-a-20-mdh-13688.html. xxvii GSM Association. 2010. Mobile Broadband Success Story, Challenges and Opportunities.http://www.gsmamobilebroadband.com/upload/resources/files/GSMA%20- %20SMC%20Tunisia%208Nov2010%20MBB.pdf xxviii Teligen. September 2011. 2011 Telecommunications Retail Prices Benchmarking Report for Arab Countries. http://www.tra.org.bh/en/PriceBenchmarking.asp xxix Maroc Telecom. 2011. Document de Reference 2010. http://www.amf-france.org/DocDoif/txtint/RAPOSTPdf/2011/2011- 028400.pdf xxx Kim, Yongsoo, Tim Kelly, and Siddhartha Raja. 2010. Building Broadband: Strategies and Policies for the Developing World. Washington D.C.: World Bank. http://www.infodev.org/en/Publication.756.html. xxxi Décision ANRT/DG/n°05/10 du 11 Aout 2010 portant adoption des lignes directrices encadrant l’examen par l’ANRT des offres tarifaires des exploitants de réseaux publics de télécommunications. http://www.anrt.ma/fr/admin/download/upload/file_fr2127.pdf xxxii Partial unbundling includes access to only high frequencies in the copper line (ADSL) and full unbundling includes both voice and ADSL. xxxiii Décision ANRT/DG/N°03/08 du 04 janvier 2008 portant approbation de l’offre technique et tarifaire relative au dégroupage partiel et total de la boucle locale d’IAM pour l’année 2008. http://www.anrt.ma/fr/admin/download/upload/file_fr1433.pdf xxxiv The local loop unbundling policy applied to operators. MTDS which has a customer base of around 1000 ADSL subscribers has a separate agreement with Maroc Telecom dating back from the days of ONPT. Specific details are confidential. xxxv INDH was announced in a speech by King Mohammed VI to highlight social challenges and launch a program that can mobilize resources and raise living standards and social development indicators: http://www.indh.gov.ma/ xxxvi ANRT. 2011. “The ICT Sector In Morocco: Key Figures� presented at the Broadband Development in Morocco: Challenges, Policies and Regulation, using lessons learnt from South Korea, July 7, Rabat. http://www.anrt.ma/fr/admin/download/upload/file_fr2230.pdf. xxxvii Salem, Fadi and Racha Mourtada. 2011. “Civil Movements: The impact of Facebook and Twitter.� Arab Social Media Report, May. http://www.dsg.ae/portals/0/ASMR2.pdf xxxviii Comité National eGov. 2006. IDARATI-Programme national e-Government 2005-2008. http://unpan1.un.org/intradoc/groups/public/documents/un-kmb/unpan040433.pdf xxxix Ministère de l‟Industrie, du Commerce et des Nouvelles Technologies. 2011. Programme eGouvernement. http://www.egov.ma/Espace%20Services/Documents/Programme%20eGov%20Morocco%20(2).pdf xl ANRT. 2011. Enquête de collecte des indicateurs TIC 2010. 28