Page 34 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 34
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 2 - BUSINESSES
MAROC TELECOM
2.5.2. Morocco
2.5.2.1. PRODUCTS AND SERVICES
In 2012, competition in the mobile market intensified. For the second
consecutive year, mobile communications prices have greatly decreased
(-27%), while customer use increased by 32% (source: ANRT). Maroc
Telecom has adapted and expanded its mobile offerings accordingly,
continuing its policy of rate reduction (-34.3%). It replicated this strategy
on the fixed market, which in turn is experiencing strong competition from
lower mobile prices, and thus was able to confirm its leadership in all
market segments.
MOBILE TELEPHONY
Maroc Telecom has strengthened its leading position in the mobile market.
At year-end 2012, it held a market share of 45.8%, compared with 29.5%
for Méditel and 24.7% for Inwi (source: ANRT).
In 2012, it gained 729,230 new customers, bringing its total active base to
17.9 million customers. This increase (+4.3%) is principally due to the good
performance of the postpaid segment, which grew by 17.7%, compared to
an increase of only 3.4% in the prepaid segment. These good results come
from targeted marketing campaigns and attractive promotional offers.
In the prepaid segment, Maroc Telecom has upgraded its offering and
now offers permanent double reloads for values of DH 5 to DH 30 and
permanent triple reloads for reloads of DH 50 and more. It also continued
its promotional strategy of giving even more bonuses related to reloads
and SMS/MMS by creating new Jawal Passes and launching a permanent
reload offer of DH100 = 3 hours, giving access to 3G Internet at a speed
of 3.6 Mbit/s.
On the postpaid segment, Maroc Telecom continues to improve its mobile
plans, by increasing their duration and integrating free minutes into the
main rate (hours of communication initially offered in the evening and
weekend after exhaustion of the plan). As a result, it has added up to
two hours of additional communication to its “individual” and “controlled”
plans. It then launched the first offer without terminals, which makes it
possible to subscribe to these plans and receive a monthly discount of
between DH 25 and DH 35. It added an hour to the communication for
the Arriyadi and Universal Music theme packages. Finally, it included
free hours in the main credit, thus giving its customers the ability to
communicate freely 24/7, both nationally and internationally.
As part of its policy to acquire new customers and build in customer
loyalty, Maroc Telecom has opened access to 3G+ Internet for all its
postpaid and prepaid customers. It then reduced its rate, created new
promotional offers and increased the speeds offered (7.2 Mbit/s and
14.4 Mbit/s).
FIXED-LINE TELEPHONY, DATA AND INTERNET
Maroc Telecom is the leading provider of fixed telephony, Internet and data
transmission services. It is the only carrier in Morocco to offer television
service over ADSL, despite this market opening up to competition in
2005 and the granting of fixed telecommunications licenses to two new
operators.
The main fixed-line telecommunications services provided by Maroc
Telecom include: telephony, interconnection with national and
international operators, data transmission to the professional market, ISPs
and other telecom operators, Internet access and related services such as
hosting. It also provides a TV service over ADSL and MT Box.
At year-end 2012, Maroc Telecom fixed network had 1.27 million lines,
a slight increase (2.3%) compared to the previous year. This result was
achieved due to the marketing and sales efforts undertaken since 2011,
including the launch of the MT DUO double play offer (fixed and Internet)
and the doubling of ADSL speeds.
In 2012, broadband Internet continued to grow, driven by the doubling
of rates and lower prices, to 683,000 customers (+15.6%). In April 2012,
the entry-level plan was increased from a rate of 4 Mbit/s for DH 99 per
month (compared to a previous rate of 2 Mbit/s). ADSL speeds for the
double-play MT Duo and triple-play MT Box offers were also doubled.
Maroc Telecom thus retains a virtual monopoly on this segment, which
represents 17.2% of all Internet access.
As of December 31, 2012, the number of professional and business fixed-
line customers totaled 426,307. Maroc Telecom’s market share is 91.3%
of lines installed, compared to 6.3% for Médi Télécom and 2.4% for Wana
(source: ANRT).
Maroc Telecom public telephony comprises nearly 55,000 lines (call shops
and pay phones). It has decreased significantly (-42.5% compared to 2011)
due to competition from mobile. Maroc Telecom’s share of the fixed-line
market is 72.4%, compared with 27.6% for Médi Télécom (source: ANRT).
2.5.2.2. DISTRIBUTION
Maroc Telecom has the largest distribution network nationwide, with more
than 71,000 direct and indirect points of sale. It is organized as follows:
✱ a direct network, comprised of 369 sales offices;
✱ an indirect network, with local independent retailers operating under
exclusivity agreements and managed by the nearest sales office.
A significant portion of these retailers operate Maroc Telecom phone
stores;
✱ distributors organized on a national level for whom
telecommunications are not the main activity;
✱ regional distributors operating in the field of telecommunications for
businesses and covering the regions of Rabat, Tanger, Marrakech,
Settat, Casablanca, Fez, Agadir and Oujda;
✱ two national distributors operating on various customer segments and
all ranges of Maroc Telecom products and services; and
✱ four partners for the sale and installation of PABX products.