January 2000

Morocco Update Memo

The following report outlines new developments in the past three months and the state of on-going developments.

General Background

Based on the evaluation report made public on the 1^st of November 1999 ANRT (National Agency for the Regulation of Telecommunications) has awarded the company Orbcomm with the GMPCS operating license (satellite telecommunications). Orbcomm is the result of a partnership between Orcomm USA and private Moroccan investors. The price of the license has been set at 100,000 dirhams (10,000 euros) in addition to a payment on the royalties calculated to be 2 % of the annual turnover.

This technology will allow the transmission and receipt of data destined for bi-directional messaging and localisation.

A GMPCS voice license is in the process of being attributed.

The ANRT will launch an invitation to bid for the attribution of three Vsat licenses: the Vsat technology is a numeric system by satellite used primarily in zones that are under-equipped in ground networks and in order to avoid the interconnection problems associated with existing ground networks. Three successful bidders out of 14 candidates will be selected in February 2000.

1. Quality of service / interconnection

Morocco has now been connected to the largest underwater fiber optic cable network (Sea, me, we,3) and as a result has become a central hub. This cable connects Morocco to Europe, Asia and the Far East. It provides a connection with 34 countries and requires an investment of $1.5 million. This hook-up will double the capacity for numeric underwater cable transmission and will thus result in an evolution of international traffic.

2. Tariffs policies

In anticipation of the launching of the operator Medi Telecom’s network, Moroccan Telecom (ex : IAM) has lowered the price of GSM communications:

• 2dh before taxes per minute during peak periods
• 1dh before taxes per minute during off-peak periods (after 8 p.m. and the weekend)

3. Copyright and intellectual property rights

After several meetings with experts from the governmental authorities, a text concerning copyrights in general, and in particular those of software designers, was approved and submitted to Parliament. (see 5.4)

4. Electronic protection

Data messages, electronic commerce and encryption

Legal recognition of data messages, including electronic signatures, was discussed during a SEPTI work meeting in November. All of the concerned public and private players were present and their goal was to reach a consensus on the subject to then be defended at the CNUDCI.

The textual project was based on the following principles:

• legal equivalence between the data message and its written form as well as between electronic and handwritten signatures, messaged and written data, written proof and data messages and between the written and electronic archive.
• principle of technological neutrality in what concerns the security process for data.
• principle of autonomy for all parties in the interest of privileging contractual standards and regulating consumer and intellectual property protection.

This project institutes the certified electronic signature as being equivalent to the notarized signature. This signature must meet a certain number of criteria and produce the following legal effects:

• Legal strength of certified electronic signatures
• Signature presumption
• Signature certification

The project also implements a flexible regime for the activities of those in charge of the certification. These activities must be declared and human, technical and financial means must be put into place for the operation.

The chapter on encryption puts an emphasis on the various applications of this technology that are intended for the protection of confidential data, the commercialization of its uses and user obligations.

5. Freedom of expression and information

Finally, this project requires all projects creating nominative databases to be declared and to respect a certain number of rules concerning personal information (access rights for a possible rectification, right to refusal).

6. Telecommunications liberalisation

Moroccan Telecom (ex IAM) is preparing the opening of its capital which has an estimated initial value of between 25 and 40 billion dirhams (25 - 40 million euros). This transfer will occur during the first trimester of the year 2000 and will be followed by a quotation on the national and international stock exchanges around October 2000.

The division of the capital will be in Morocco’s favor, as the state will maintain its position as principle shareholder with 51% of the shares. The other 49% will be divided between the future foreign partner, who will most likely be France Telecom, and the public, who will have access through the Casablanca stock exchange.