Moroccan tech market enjoying 3G internet boom

2008-10-06

The Moroccan telecommunications market continues to show strong signs of growth, with the numbers of 3G and home internet users on the rise.

By Adam Mahdi for Magharebia in Casablanca – 06/10/08

[anrt.ma] According to regulatory agency ANRT, the new 3G sector is taking a surprising share of Morocco's telecom market

Growth in information and communications technology (ICT) in Morocco has been dominated by a boom in 3G Internet and the sustained growth of mobile telephone subscriptions, with a current market of more than 21.5 million customers. The number of fixed-line telephone customers has also grown, recently surpassing 2.7 million.

According to recent market indicators from the National Telecommunications Regulatory Agency (ANRT), Morocco has consolidated its growth trend in the ICT market. The numbers also show growth in the market for mobile and fixed telephony and the Internet to be sustainable.

In real terms, Morocco now has more than 21.5 million customers in the mobile sector, equalling a 70% penetration rate. In terms of market share, Maroc Telecom provides roughly two-thirds of mobile coverage with 66.37% of the market, compared to 33.37% for competitor Médi Telecom.

The breakdown of mobile customers by subscription type, however, shows a market dominated by pre-paid users, with just 4% on contract. The wireless market looks set to continue its upward trend with the recent start-up of a mobile offer from a third national operator, Wana.

"Despite this boom in mobile telephone take-up, the market remains limited in terms of the services and content offered to customers over their handsets," said Taher Alami, Director of communications firm Abweb Consulting.

Where the internet is concerned, the kingdom now has more than 650,000 subscribers; this represents growth of 37% compared with June of last year. When market share is broken down, this shows the emergence of a new entrant – in this case, Wana – in the 3G internet sector with 18%, compared with 76% for Maroc Telecom and 4% for Médi Telecom.

Wana's forceful entry into the 3G segment is explained by the launch of these new services in Morocco since April 2007. These services are characterised by their ease of use, offering the user an Internet connection with full mobility within the areas covered by the network, principally in the nation's major cities.

Total penetration of 3G internet rose in June 2008 to around 160,000 subscribers, with an astounding rate of growth of more than 553% in a single year. As a result, 3G has become the second most popular way of accessing the Internet, with 24% of market share compared with 74% for ADSL broadband internet.

According to Adil Bikarbass, technical director of technical consulting group MTDS, "3G access is still of great value to businesses, particularly those whose resources are constantly on the move around the Kingdom."

Meanwhile, the liberalisation of fixed telephony is starting to have an effect. According to indicators from the ANRT observatory, the number of subscribers has reached 2.7 million, with a penetration rate on the order of 9%. This figure encompasses residential subscribers, businesses and payphones using the fixed telephony network. The fixed telephony market is thus dominated, almost equally, by Maroc Telecom and Wana.

In addition to growth in infrastructure, Moroccan consumers are benefitting from an expansion of technical services. Most notably in 2008, it is now possible to make online payments using locally-issued bank cards. Several online vendors now offer Moroccan web surfers the possibility of shopping directly over the internet.