July 1999

Morocco Master Report

I - General background

In Morocco, telecommunications are considered to be a base for many different sectors. They play a developmental role as well as that of a support for structural reform. As per its infrastructure and the high quality of its services, Morocco possesses one of the largest telecommunication networks in Africa. This network has been widely developed and improved, particularly with the application of new telecommunication techniques.

Previously, the National Office of Posts and Telecommunications (ONPT), a public organisation of both a commercial and industrial nature, has controlled the essential part of all postal and telecommunication activity. An increasing number of businesses specialising in the commercialisation of telecommunication related products such as privatisation and open access to the product and service sectors have emerged.

An ever-increasing demand will reinforce the role of private operators in the areas of sub-contracting and product commercialisation: telecommunication and added-value services, cellular telephones, data transmission, wide band networks, videotex and RNIS.

1. General telecom policy

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

• to equip the telecommunications sector with a statutory framework that is both efficient and transparent thus favouring 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.

2. Institutional structures in charge of the regulatory issues

2.1 Ministries in charge of the telecommunication issues

• Ministry of Communication
• Ministry of Commerce, Industry and Cottage Industry
• Ministry of the Economy and Finances

2.2 National regulatory authorities

The Prime Minister has instituted a public establishment called the "Agence nationale de réglementation des télécommunications -ANRT" (The National Agency of Telecommunication Regulation), which is financially autonomous and operates by high moral standards. This agency is under governmental supervision and its purpose is to enforce the current provisions of the law within the agency’s competent branches, notably for everything relating to the missions assigned to it. The National Agency of Telecommunication Regulation will ensure that the preceding provisions are respected and will settle any related litigation.

To this effect, the ANRT is assigned the following:

1) to elaborate, upon request of a competent governmental authority or by the agency’s own initiative, the propositions aimed at adapting the legal, economic and security framework in which all telecommunication are carried out. The Agency thus prepares legislative projects, decrees and ministerial orders related to the system of activities of the different operators in the telecommunication sector.

2) to prepare and update, in liaison with other related ministerial departments and public safety organisations, the text which establishes the rights and obligations of all public telecommunication network users.

3) to investigate all license requests, to prepare and implement the procedures for license attributions by opening the market to competition, and to receive the preliminary declarations for telecommunication activities coming under the licensing system. The ANRT delivers authorisations and prepares the corresponding licenses and the schedules of conditions and ensures that the terms of the licenses are respected by the diverse users.

4) to propose technical specifications and procedures for the certification of test and measure laboratories.

5) to determine the technical and administrative specifications for the certification of terminal equipment and radio-electric installations and the technical and methodological rules applicable to all types of networks which can be connected to the public telecommunication networks and to all telecommunication networks open to the public. These specifications and rules are indisputable by third parties until they have been published in the official Bulletin.

6) to control and regulate the encrypting modes.

7) to propose the maximum tariffs for any services related to universal service.

8) to participate with the governmental authority in charge of telecommunications in the permanent radiocommunications committee as created by the royal decree #675-66 of 6 ramadan 1386 (19 December 1966), and in international meetings dealing with the management of the spectrum of radio-electric frequencies and the regulation of telecommunications. The Agency will also participate in the activities of national or foreign organisations working to study and improve the regulations and the management of telecommunications.

9) to ensure, on behalf of the State, the management and the supervision of the spectrum of radio-electric frequencies and the respect for the constraints involved with the eventual enciphering of exchanged information;

10) to ensure, on behalf of the State, respect for the current regulations and terms of the licenses, authorisations and certifications granted in the telecommunications sector. To this effect, the ANRT receives and analyses all information and documentation required by telecommunication network and service users within the framework of their license and their schedules of conditions and, if necessary, asks for any further explanations or information that may be required;

11) to follow, on behalf of the State, the development of information technologies.

2.3 Office for the protection of economic competition

L’OMPI (the Moroccan Office of Industrial Property) should be in place before the end of the year as it is included in a legislative project currently before the parliament, which is attempting to create a text aimed at reinforcing regulations concerning intellectual property.

2.4 Consultative councils

The most important outcome of the seminar for the development of teleservices in Morocco, as organised by the Department of  Commence and Industry the 2 October 199, was undoubtedly the creation of a public and private committee in charge of monitoring information technologies (CSTI). This committee is assigned with developing a national strategy concerning information technologies. CSTI, National Committee 2000 – Mrs HERACCI

2.5 Public telecommunication operators

An anonymous company called "Itissalat AI-Maghrib," in conjunction with the licensed operators, is assigned the following:

• to ensure a universal service
• to establish and/or exploit one or more public telecommunication networks.

The telecommunication network and services previously offered and operated by the National Office of Posts et Telecommunications shall be entirely transferred to Itissalat AI-Maghrib by the date this present law comes into effect. Itissalat AI-Maghrib will have the right to exercise full control of the network and services. A schedule of conditions, as approved by decree, will establish the conditions under which the corresponding telecommunications services will be rendered.

3. International relationship and agreements/p>

Morocco is represented at the different meetings held by international and regional organisations concerned with telecommunications and in particular:

• the Council of Ministers of Posts and Telecommunications of the Union of the Arabian Maghreb;
• the Council of Arabian Ministers of Telecommunications;
• ARABSAT;
• The International Union of Telecommunications;
• the World Commerce Organisation (OMC);
• the Gulf Countries Cooperation Council;
• the European Telecommunications Organisation EUTELSAT.

On the international level, the development of the telecommunication network takes into account the geo-strategic position of Morocco and its role as a link between Africa and the Arab world.

Morocco is equipped with the most modern means of telecommunications. Underwater cables and satellites connect the country to Western Europe and North America. These means are continually reinforced and adapted to the evolution of exchange and technology as Morocco participates in the international European-American projects using underwater fibre optic cables and satellites - "Intelsat" et "Arabsat".

Participation in the African satellite project "AFROSAT" will also allow Morocco to diversify its relations with other African nations. Morocco is currently connected to 150 countries.

4. Regulatory framework

4.1 Historical overview

During his speech in March 1997, his Majesty declared: "in the telecommunications field, a reform of the institutional framework governing this sector is unavoidable." The principle result of this was:

• the separation of postal and telecommunication activities,
• the separation of regulation and production operations
• the opening of the market to competition

This process has brought about the creation of:

• The National Agency of Telecommunication Regulation is in charge of preparing statutory acts related to the telecommunications sector.
• Barid Al Maghrib, a traditional public establishment in charge of managing postal activity.
• Itissalat Al Magrib, an anonymous company whose relationship with the State is derived from both the previsions related to the general conditions of use of the telecommunication networks and services and from the schedule of conditions.

4.2 Present general legislation

• Dahir #1-97-162 of 7/8/97 putting into effect the law #24/96
• Law #24-96 relative to the post and to telecommunications

The purpose of the law #24-96 relative to the post and to telecommunications is to define the legal framework which specifies the new fields of operations for the postal and telecommunication sectors, particularly that of telecommunication networks which will be able to be used by private license holders. The licenses will be granted by a deliberated decree in accordance with Article 66 of the Constitution with the knowledge that it is the State that determines the general orientation of the postal and telecommunication sector and a competent governmental authority which ensures that this is applied and respected.

4.3 Key legislative measures

• Decree #2-97-813 of 27 Chaoual 1418 (25 February 1998) concerning the application of the previsions of law # 24-96 relative to the post and to telecommunications as concerns the National Agency of Telecommunication Regulation.
• Decree #2-97-1027 of 27 chaoual 1418 (25 February 1998) relative to the conditions of supply for an open telecommunication network.
• Decree #2-97-1024 of 27 chaoual 1418 (25 February 1998) determining the list of added value services.
• Decree #2-97-1025 of 27 chaoual 1418 (25 February 1998) relative to the interconnection of telecommunication networks.
• Decree #2-98-158 of 27 chaoual 1418 (25 February 1998) concerning the nomination of the members of the administrative council of the National Agency of Telecommunication Regulation.
• Decree # 2-97-1026 of 27 chaoual 1418 (25 February 1998) relative to the general conditions for operation of the public telecommunication networks.
• Decree #2-98-156 of 27 chaoual 1418 (25 February 1998) intended for the application of Articles 96 and 97 of the law #24-96 relative to the post and to telecommunications.
• Decree #2-98-157 of 27 chaoual 1418 (25 February 1998) concerning the delegation of power for the determination of the assignation fees for radio-electric frequencies.
• Order #° 310-98 of 27 chaoual 1418 (25 February 1998) setting the assignation fees for radio-electric frequencies.
• Order #343-98 of 27 chaoual 1418 (25 February 1998) concerning the inventory approval for goods transferred to the National Agency of Telecommunication Regulation.

4.3.1 Liberalisation

Within the framework of the program to liberalise the telecommunication sector, as outlined in the law #24-96 relative to the Post and to Telecommunications, the government of Morocco will open the market to competitors for a second GSM license to be granted.

To this effect, the National Agency of Telecommunication Regulation invites any interested operators to respond to this offer by filling out a questionnaire concerning this operation. Within the framework of this invitation to bid for a second GSM license, seven bidders were selected in a prequalification phase. They represent the following operators:

• France Télécom / Motorola
• GTE / Bell Atlantic
• Orange
• Telecom Italia Mobile
• Telefonica / Portugal Telecom
• Vivendi / SBC
• Vodafone / Air Touch

The chosen bidders were asked to pick up their definitive schedule of conditions at the ANRT beginning from 20 April. Final offers will be given at the end of June.

4.3.2 Licensing

The license for the establishment and use of public telecommunication networks that are within the public domain and use the spectrum of radio-electric frequencies is granted to any person with high ethical standards who has made successful competitive bid and who agrees to abide by the general conditions of use and the clauses of a schedule of conditions which regulates the general terms of establishment and operation of telecommunication networks and services. This person will be required to make a financial contribution for which the terms will be outlined in the aforementioned schedule of conditions.

The general conditions for use concern:

• fair competition
• the obligation to keep separate financial records for each network and service used;
• a service which guarantees both confidentiality and neutrality with regards to any transmitted messages;
• instructions with respect to national defence and public safety and the prerogatives of the legal authorities;
• modes of contribution to the general missions of the State and in particular to the tasks and responsibilities associated with universal service, regional and national development, and the protection of the environment;
• conditions under which necessary information will be supplied for a directory for subscribers;
• the obligation to respect the international agreements and conventions ratified by the Kingdom of Morocco;
• the obligation to put emergency calls through without a charge;
• the contribution to research, training and standardisation in the field of telecommunications.

4.3.3 Universal Service

Universal service is one of the public service missions to which IAM must contribute. This implies that telephone service will be available throughout the country and that a phone box will be installed by the year 2002 in every community of more than 200 households.

4.3.4 Quality of Service

Service quality is one of the traditional operator’s priorities. This operator with improving its communication network in order to achieve a technical efficiency rate of 98% in 1998.

4.3.5 Interconnection

Interconnection between the different networks must be done under conditions that are regulated both technically and financially; that are acceptable, objective and non-discriminatory and which ensure practices based upon fair competition. The National Agency of Telecommunication Regulation will ensure that these terms are respected and will settle any related disputes.

5. Freedom and protection

5.1.1 Standardisation, interconnection and interoperability

On 27 April 1998; IAM proposed an offer for interconnection to the ANRT which set the technical conditions and tariffs to be granted to new telecommunication operators. This agreement enabled them to interconnect their network to that of IAM.

5.1.2 Access right and Universal Service definition

Universal service is defined as the availability to all of a minimum service consisting in a specified quality telephone service at a reasonable price, a guarantee that emergency calls will be put through without charge, a directory system and phone boxes throughout the country; all with respect for the principles of equality, continuity and universality.

5.1.3 Tariff policies

The IAM’s tariff policies have been aiming to become competitive since 1 June 1999 at which date rates were lowered for both national interurban and cellular communications. This policy is intended to create a faithful clientele prior to liberalising the sector.

5.1.4 Frequency allocation and numbering

The license for the establishment and use of public telecommunication networks that are within the public domain is granted to any person with high ethical standards and who has made successful competitive bid. The technical conditions for network use are determined by the ANRT.

5.2 Copyright and intellectual property rights

A law concerning intellectual property and copyright is currently before the Moroccan parliament. The Minister of Communication, the Minister of Commerce and Industry, along with the Office of the Secretary of Technology and Information are organising an educational campaign about industrial property.

5.3 Electronic protection, legal protection and security (encryption, electronic commerce)

Electronic commerce is not yet equipped with a statutory framework in Morocco. However, Morocco recognises the law concerning electronic commerce voted by the CNUDCI regulating the use of data encrypting.

6. Information Society Policies

6.1 Umbrella Policies

The three large developmental axes for the information society in Morocco are:

• Human resources (initial and continuing education)
• Promotion of major projects (administrative)
• Infrastructures (telephone density, numbering, satellites)

6.2 IS Application Areas

6.2.1 Government (national, regional and local)

At the governmental level the principle applications are the following:

• Utilisation of the EDI at the port of Casablanca
• Integrated management projects (Human resources, Management, Patrimony)
• Implementation of an inter-administration network

6.2.2 Education

The principle educational project is the information system MARWAN (Morrocan Academic and research WAN) which will enable public schools and universities to be connected.

6.2.3 Transport

Two projects are currently being prepared: One concerns the creation of a didactical CD ROM for the driving code and the other is aimed at implementing a new system for managing automobile registration.

6.2.4 Medicine

See recommendations of June 3^rd sessions

6.2.5 Other

A project for tourism, currently in the process of being developed, is aimed at a virtual presentation of Moroccan tourist sights.

II.On-going developments

1. On-going changes in institutional structures

A radical transformation is happening due to the liberalisation of the telecommunications sector and most notably because of the upcoming attribution of a second GSM license. In addition, the privatisation of the traditional operator will allow for a revolution without precedent and enable IAM to be prepared for the international competitors interested in the Moroccan market as a result of the liberalisation of the fixed telephones.

2. On-going changes in the regulatory framework

A legal framework will be implemented so as to regulate the fixed telephone sector which will be open to competition as a result of the privatisation of IAM.

3. Media and telecommunication markets: privatisation, foreign investments, mergers and acquisitions

The privatisation of IAM is scheduled for December 1999. In addition, the possibility of opening the IAM capital to outside investment is currently being studied. Numerous telecommunication companies ( Nortel, Ericsson, Motorola) have launched investment programs in order to become the partner of the second GSM operator.

4. On going changes in IS policies

The management of the "information society"  program was given by the government to the SEPTI (Office of the Secretary of New Information Technologies) whose principle objectives are:

• the emergence of an economy based on knowledge and innovation
• the valorisation of human resources
• the development of infrastructures
• the generalisation of information technologies