Morocco's ICT sector sees rapid expansion

02/01/2008

2007 was a pivotal year for the development of Internet, mobile telephony and fixed-line telephony in Morocco, with deregulation beginning to make a notable impact.

By Adam Mahdi for Magharebia in Casablanca - 02/01/08

[Getty Images] Maroc Telecom continues to dominate the GSM market

The information and communications technology (ICT) sector in Morocco is undergoing a telephony explosion. According to the latest quarterly report by the research and monitoring centre of the National Telecommunications Regulation Agency (ANRT), the country now has 2.3 million fixed-line customers.

With 450,000 high-speed Internet subscribers, Morocco leads all of Africa for broadband connections. The country also has 20 million GSM customers and more than 1,500 ICT firms employing over 42,000 people.

The current 70% penetration rate for the fixed-line market was helped by the entry of new player Wana, which managed to sign up a million customers since going into business at the beginning of 2007. The public telephony market now totals 177,000 units.

In the mobile telephony sector, Morocco consolidated its position as a regional leader. It has a total customer base of nearly 20 million GSM customers and a penetration rate of over 62%. The market is still dominated by the original market player, Maroc Telecom, with a market share of 66.9% as compared with 33.1% for Meditel. The dynamics of the mobile market are sure to change with the scheduled entry in April 2008 of Wana, which currently has a limited licence for mobile telephony.

The mobile market is currently dominated by prepaid subscriptions which have gained the upper hand over contract subscriptions. The latter account for just 800,000 customers out of a total of 20 million.

These growth trends in the ICT sector look poised to accelerate further, thanks to a new opportunity targeting Morocco's three million credit/debit card users. The Centre Monétique Interbancaire decided to create certified Visa and MasterCard platforms enabling secure credit/debit card electronic payments. Since early December, Internet shoppers making online purchases have been able to enter simply the number of their local credit or debit card, its expiration date and the three-digit security code on the back. There are currently no restrictions on online payment, with everything depending on the policies and services of seller sites.

In addition to the CMI (payment by buyer) platform, Morocco’s new e-commerce channel also comprises the services of the original market player, Maroc Telecommerce (MTC), an Internet service provider. It will now act as a virtual Electronic Payment Terminal (EPT) linking seller sites, e-shoppers and the CMI.