January 2001

Morocco Master Report

This is the final Alternative Networks report on Morocco as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Mediterranean Area, March 1999 - January 2001 inclusive. 

1.1 Regulation of telecommunications and alternative networks

The new structure of the telecommunications sector, as stated in the law #24-96, defines the following objectives:

• to equip the sector with a statutory framework that is both efficient and transparent to favour competition that will be beneficial to the telecommunication network and service users;
• to pursue the development of these networks and services while encouraging those initiatives which tend to best adapt to current technological evolution and scientific progress;
• to furnish a public service throughout the country and to all levels of the population and this with an objective of economic and social development;
• to offer the national economy a means of communication based on constantly evolving technologies in order to facilitate and encourage its integration into the world economy;
• to make the postal sector more dynamic by introducing competition in international express mail;
• to create employment opportunities directly or indirectly related to the sector.

1.1.1 Attribution of GSM licenses

The attribution of a second GSM license to the Telefonica consortium was approved by the Counsel of Ministers on Monday August 2nd, 1999. The capital of the consortium, now baptized as Médi Télécom, is held by the Spanish operator Telefonica (39.5 %), the Portuguese operator Portugal Telecom (39.5 %), the Moroccan Bank of International Commerce (20 %), the Moroccan group Akwa (ex-Afriquia) (11%) and the Caisse de Dépôt et de Gestion (8%). Médi Télécom launched the GSM network on March 27th, 2000. The initial network is made up of two main switchboards in Casablanca and Rabat and 400 relays to secure access to 40 % of the population.

The resulting demand for GSM services has largely surpassed the initial previsions. With 2.2 million subscribers split between Maroc Telecom (IAM) and Médi Telecom, demand is already at a level predicted for 2003. Maroc Telecom GSM customers alone exceeded 2 million on November 10, 2000, consolidating the company’s leading rank in the Africa-Arab world By comparison, there were 74,472 mobile subscribers in 1997, 116,645 in 1998, and 500, 000 in February 2000.

1.1.2 Attribution of GMPCS licenses

In a decision of the ANRT (National Agency for the Regulation of Telecommunications) on June 12^th, 1998, the agency published a preliminary calendar for the attribution of a GMPCS licenses. The public tender was published on December 23^rd, 1999; two firms Maroc Telecom (IAM) and Orbcomm filed for the tender.

The ANRT awarded the company Orbcomm the GMPCS operating license (satellite telecommunications) in February 2000. Orbcomm is the result of a partnership between Orcomm USA and private Moroccan investors. The price of the license was set at 100,000 dirhams (10,000 euros) in addition to a payment on the royalties calculated to be 2 % of the annual turnover.

The ANRT passed an agreement with the firm "TE.SA.M-Maroc" on March 29th, 2000 for the installation and exploitation in Morocco of public GMPCS communications networks TE.SA-Maroc, a branch of the TESAM Sas firm (France Telecom 51% -Alcatel 49 %), was allowed to start immediate exploitation of the Globalstar service.

An earth satellite telecommunication station "Orbcomm Maghreb", the first in Africa, was dedicated in May 2000 by a Moroccan official party The station, a Global Mobile Personnel Communications systems, inter-connects 35 satellites to the region’s earth communications networks, using the OBCOMM system. This technology will allow the transmission and receipt of data destined for bidirectional messaging and localisation.

1.1.3 Attribution of VSAT licenses

In a decision of the ANRT on June 12^th, 1998, the agency published a preliminary calendar for the attribution of three VSAT ("Very Small Aperture Terminal Satellite") licenses. The public tender was announced on December 23^rd, 1999, and the ANRT published its conclusions for the attribution of the licenses on May 4th, 2000. The seven firms that submitted an offer were ranked in the following manner :

US Space Com SA firm won the first license with a bid of $ 4.5 million, Gulfsat Maghreb was awarded the second with a bid of $ 3,6 million. The Norwegian telecom operator Telenor was issued the third license in association with Argos SA. It will invest NKr25 million during 2000 to develop the network, which will be used for international voice, data and Internet.

1.1.4 Future timetables

The Ministry of Public Administration and Privatisation announced in February 2000 that the telecom sector will be fully liberalized in the course of year 2002. Maroc-Telecom will be totally privatized to the private sector during that timeframe.

The board of administration of the ANRT has set out the following timetable for the development of the information infrastructure :

• 2001: A single license for the commercialisation of all non-voice services through out Morocco. To obtain this license the operator will be required to maintain a network guaranteeing a debit of at least 2 megabytes per second. The holder of this license will be able to offer voice services beginning January 1rst, 2002.
• 2001: A single interurban license for the commercialisation of all non-voice services. To obtain this license the operator will be required to maintain a network guaranteeing a debit of at least 2 megabytes per second. The holder of this license will be able to offer voice services beginning January 1rst, 2002
• 2001: A license by region for the commercialisation of all local non-voice services. To obtain this license the operator will be required to maintain a network guaranteeing a debit of at least 2 megabytes per second. The holder of this license will be able to offer voice services beginning January 1rst, 2002.
• 2002: Two licenses for international telecommunications will permit the commercialisation of all services.

1.2 Regulation and status of public utilities and public organisations regarding a potential entry in alternative networks

The principle outcome of the liberalization of the telecommunications sector, as initiated by the law 24.96 pertaining to the post and telecommunications, has been the opening of the Moroccan market to foreign operators. The arrival of other operators has created an undeniable concern for the need for alternative infrastructures. In effect, the opening of the telecommunications market must be accompanied by the liberalization of alternative infrastructures. None-the-less, in the immediate future, alternative networks remain hypotheses outside current legal provisions.

1.3 The actors and their strategies

In Morocco, several legal entities of public or private nature dispose of alternative infrastructures. These entities can be classified as being either national or local. The national players are primarily the National Office of Electricity, the National Office of Railways (ONCF) and the National Society of Moroccan Highways (ADM). In possession of the long distance infrastructures, these entities can play an important role in development of the alternative infrastructure market.

There are few local players. They are primarily METRAGAZ, a company running the Gazoduc in the northern part of the country, and the companies LYDEC and REDAL that are in charge of water distribution and electricity in Casablanca and Rabat. At present these local players do not dispose of any telecommunication infrastructures. Of those involved on either a national or local level, none currently dispose of adequately developed infrastructures, but all are planning for a future development of their networks, most notably in fiber optics.

2. Inventory of the major " public " utilities with a potential for use in IS applications:

2.1 Types of companies offering networks (gas, railway, water and draining networks, waterways, motorways, electrical networks, cable...): description, choice and strategies (alliance opportunities, vertical integration,…), and customer targeting.

2.1.1 The National Office of Electricity:

L'ONE uses 14706 Km of electrical lines. Only lines that are 400 KV and 225KV can be used to furnish alternative infrastructures. L'ONE is also planning to set up a 1000 Km fiber optic network. The fiber optic network, which could be traced onto the electric network, will most often stop before reaching city limits. Additional cables will have to be drawn toward the city centers. It must be noted that the network that the ONE is planning to establish will only serve the major metropoles. What is to be done for smaller cities and rural areas?

ONE is planning to invest in fiber optic cables. Although this Office does not wish to become a telecommunications operator, it does not exclude the possibility of contracting with operators who are interested in the available capacity of the fibers. In addition to this offer, ONE can propose any interested operator the use of its pylons, roofs, terraces and sites……

2.1.2 The National Office of Railways:

The ONCF possesses a fairly developed network of railways (over 2000 Km of lines). In addition, the ONCF uses a ground radio network over 947 Km of lines and other wire networks used for signal systems and for data transmission over a 956 Km distance. This Office is also planning to establish a fiber optic network, but only for its own needs.

The railway network of the ONCF would then constitute an alternative infrastructure in the sense that fiber optic cables could be airlifted onto the pylons supporting the catenaries.

The ONCF has not always done serious studies concerning the use of its network. We saw above that this network was specially conceived for railway use.

However, the Office is conscious of the fact that it can play an interesting role within the framework of a negotiation concerning access rights. In effect, the Office does not exclude the possibility of investing in telecommunications by concluding an agreement with a telecommunications operator who in exchange for access, would furnish the Office with a space on its network for its own needs.

Like the ONE, the ONCF could also offer sites close to its train stations.

2.1.3 The National Society of Moroccan Highways:

The Moroccan highway network is currently very precarious as only 286 Km of highways are in use. However, by the year 2010, the ADM plans to put a 1500 Km highway system into place that will give access to all of the country.

It must be noted that the ADM has neither a fiber optic network nor any conduits along the roads, including those now being constructed. However, considering the trunk roads chosen for construction, we think that the ADM could play an important role as an alternative infrastructure supplier.

The ADM is also interested in using its infrastructure, especially now that it is planning to establish a telecommunications network for its own needs, e.g., communication with the toll centers, a network of emergency call boxes…

The ADM could, for example, form a partnership with a telecommunications operator and in exchange for facilitating the installation of carrier cables for the operator, have its own telecommunication traffic put through.

Although the vision of the ADM is still very limited concerning this question, we believe that it constitutes an important player in terms of alternative infrastructures.

2.2 Types of services offered by the operators on the networks.

Potential suppliers of alternative infrastructures are thus either public establishments or concessionaire companies. They are public service organizations and were created for a specific purpose. In addition, they are only temporary users of the State’s public domain.

As a result, the statutes of these entities must be reviewed in order to see if they are authorized to do one of the following:

• Lease unused fibers.

• Sell a determined capacity.

• Furnish telecommunication services.

• Form a partnership with a telecommunications operator.

The schedule books of these organizations must also be consulted in order to determine their rights and obligations concerning use of the public domain in case of negotiation about a right to access.

Concerning the above-mentioned operations, we have surmised in general that the public establishments have a defined purpose that is very limited and does not allow them to market alternative communication networks. However, the concessionaire companies have a broader purpose and can thus potentially exercise activities outside of their principal operations.