Page 33 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 33
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
MAROC TELECOM
2.5. MAROC TELECOM
Maroc Telecom Group is the historical telecommunications operator in
the Kingdom of Morocco with operations in fixed-line telephony, mobile
telephony and Internet.
With its leading position in Morocco, it is engaged in a dynamic
process of international expansion. It acquired a 51% controlling stake
in the historical operators in 2001 in Mauritania (Mauritel, via the
CMC holding company), in December 2006 in Burkina Faso (Onatel),
in February 2007 (1) in Gabon (Gabon Télécom) and in July 2009 in Mali
(Sotelma).
In addition, it holds 100% of Casanet, one of the leading suppliers of
Internet solutions in Morocco and the publisher of the Moroccan Internet
portal menara.ma.
(1) The transaction was completed in December 2010.
(2) Source: Merrill Lynch, end-September 2012.
(3) Source: Dataxis.
2.5.1. Strategy/Positioning
Maroc Telecom Group operates in countries with high levels of
demographic and economic growth. In Morocco, the Ministry of Finance
forecasts GDP growth of 4.5% in 2013, while the International Monetary
Fund expects growth of above 5% for the whole of sub-Saharan Africa.
Maroc Telecom further benefits from the growth of the telecom markets
in which it operates, especially in mobile activity. According to the ANRT
(the Moroccan national telecommunications regulatory agency), the mobile
penetration rate in Morocco, which reached 120% at year-end 2012,
remains far below that of the most mature countries (129%(2) in Europe,
including 173% in Finland). Gabon and Mauritania (with penetration rates
at the end of September 2012 of 164%(3) and 93%, respectively) have good
growth prospects ahead of them because of the structure of their mobile
market (mostly prepaid, with a large number dual-SIM cards). In Burkina
Faso and Mali (48%(2) and 82% penetration rate in September 2012,
respectively), the mobile market has not yet reached maturity and offers a
very large growth margin.
Maroc Telecom intends to benefit from the growth of these markets and is
focusing its strategy on three main areas: strengthening its leadership in
Morocco, investing in the growth of its subsidiaries in Sub-Saharan Africa
and looking for external growth opportunities on high-potential markets.
2.5.1.1. STRENGTHENING ITS LEADERSHIP IN MOROCCO
The operator will continue to invest in Morocco to expand the coverage
of its services, while ensuring that they are of the highest possible quality.
On the mobile market, its objectives are to:
✱ continue encouraging greater use by way of a finer segmentation
of the market and controlled reduction of prices;
✱ promote customer loyalty through an active policy of migration
of prepaid to postpaid subscriptions; and
✱ grow the Average Revenue Per User (ARPU) by promoting the use
of “non-voice” services (SMS, mobile Internet, banking and
other value-added services).
Within the fixed telephony market, Maroc Telecom intends to stabilize its
wire network while expanding the penetration of broadband Internet and
TV over ADSL.
2.5.1.2. GROWTH OF MAROC TELECOM’S SUBSIDIARIES
IN SUB-SAHARAN AFRICA
Internationally, the Group aims to maintain its leading position by
capitalizing on its strategy of being a converging operator both in mobile
and in fixed markets and extract maximum profit from potential synergies
between these markets and their high-level of growth. Significant
investment will be needed to increase coverage of its networks and
deploy 3G networks. Maroc Telecom aims to remain the leader for both
mobile (development of 3G and mobile Internet, launch of mobile payment
services) and fixed telephony (ADSL high-speed Internet and wireless
access and unlimited offers).
2.5.1.3. SEARCH FOR EXTERNAL GROWTH
OPPORTUNITIES ON HIGH-POTENTIAL MARKETS
Maroc Telecom will examine potential acquisition opportunities, while
maintaining a strict financial and legal discipline that takes into account
the sustainability and viability of such investments. The Group has all the
necessary attributes to carry out this policy: strong marketing power, a
position as a technical leader, strong network investment capacity, strict
cost control, human expertise through on-site teams and the assignment
of experts from Group headquarters.