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Competition Stings Morocco's Telecom Incumbent
22/9/2009

­Morocco's telecommunications market will be marked by an increase in competition in both fixed and mobile segments during the next five years, leaving incumbent Maroc Telecom to deal with the mounting pressure, according to the latest report from Pyramid Research.

  Source CellularNews
 
Article

Competition Stings Morocco's Telecom Incumbent

CellularNews - Story

­Morocco's telecommunications market will be marked by an increase in competition in both fixed and mobile segments during the next five years, leaving incumbent Maroc Telecom to deal with the mounting pressure, according to the latest report from Pyramid Research.

Morocco's telecom market total revenue will increase by a 4.9 percent CAGR over the next five years, from an estimated $4.1 billion in 2009 to $5.1 billion in 2014, notes Badii Kechiche, analyst at Pyramid Research and author of the report. "However, the entry of Wana to the mobile market in 2008 and its competitive offers are proving disruptive to market dynamics," he says. "Also, new commercial initiatives and promotions at the beginning of 2009 are helping Meditel boost its market share, leaving Maroc Telecom to bear the cost of declining overall growth," he adds.

"The new environment is expected to significantly affect Maroc Telecom's share of revenue," says Kechiche. "The incumbent's share of revenue is expected to decrease by 19 percent over the next five years, reaching 57 percent by 2014; in the meantime, Wana will witness a significant increase in its revenue share, with expected revenue of $890 million in 2014, up from an expected $400 million in 2009." Wana's large base of fixed subscribers, the expected launch of GSM services to complement its CDMA coverage and the operator's strong hold on the mobile broadband market will be the main drivers for the increased revenue share.

Pyramid expects the introduction of new investors will boost Meditel's already strong performance on the mobile side and a continued focus on the corporate segment on the fixed side. "Meditel's revenue will reach $1.1 billion by 2014, from $710 million in 2009; in order to deal with the increasing pressure, Maroc Telecom focused its efforts on high ARPS and business subscribers by introducing very competitive international calling rates and prepaid bundles," Kechiche says.

 
 
 
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