In 1996, the Maroc 2020 association conducted an in-depth study on Morocco's telecommunications sector, revealing significant shortcomings. The report emphasized the need for reform, citing the sector's potential to contribute 3% to the country's annual growth. With a little over 1 million subscribers at the time, the sector's revenue was unevenly distributed, with 100,000 subscribers having virtually no activity and nearly half having monthly bills under 100 DH.
The study noted that 40% of the ONPT's revenue came from international communications, primarily with the European Union. Specifically, 80% of these international communications were with France, highlighting Morocco's dependence on a single market. The report warned that with advancing technology and regulatory changes, the ONPT's resources could dwindle significantly if not addressed. The ONPT's financial situation was further strained by the state's treatment of it as a "cash cow," with the Treasury extracting 38% of its revenue, including a 10% monopoly fee.
The level of telecommunications infrastructure in Morocco was also deemed concerning, with only 4.2 lines per 100 inhabitants, compared to the 15 lines per 100 inhabitants recommended by the International Telecommunication Union (ITU) and Nomura. In comparison, Tunisia had 4.9 lines, Jordan had 7.1, Malaysia had 12.8, and Turkey had 18.4. Rural areas were particularly underserved, with only 70,000 lines available for 13 million inhabitants, representing just 7% of the total.
Despite the ONPT's investments in cutting-edge technology, including a nearly fully digitized network, the services offered were not being utilized effectively. The report noted that many services, such as high-speed fiber-optic connections, required subscribers to purchase their own conversion equipment to connect to public exchanges. This resulted in a negligible return on investment. The study's authors, Ahmed Rahhou and Mohamed Soual, emphasized the need for a comprehensive overhaul of the sector.
To achieve the desired 15% connection rate by 2005, the report estimated that 60 billion DH would need to be invested over ten years, with an annual installation of 400,000 lines. Given the limited prospects for self-financing, the authors stressed that significant foreign capital injection would be necessary. The proposed transfer of ONPT's assets and liabilities would require careful consideration. The report suggested that opening the telecommunications sector to competition could lead to an expansion of services and lower prices.
One potential solution proposed was the launch of a Moroccan satellite, which would not only provide national audiovisual coverage but also enable telephone services in rural areas. With 36,000 villages in Morocco, the installation of 36,000 antennas could address the issue. The authors noted that a satellite would cost around 200 million dollars, comparable to the price of a 747 aircraft. Morocco already has three satellites, and the annual cost of connecting to Arabsat or Eutelsat could be amortized with a national satellite.
The report recommended several measures to support the development of the telecommunications sector, including reducing customs duties, streamlining equipment approval procedures, facilitating access to credit and venture capital, and allocating a portion of the debt-to-equity swap to joint international ventures. The study's findings remain relevant today, highlighting the ongoing need for reform and investment in Morocco's telecommunications sector.
Key points
- The Maroc 2020 association's 1996 study revealed that Morocco's telecommunications sector required significant reform to address shortcomings in infrastructure, revenue distribution, and investment.
- The study proposed solutions, including the launch of a Moroccan satellite to provide national coverage and enable telephone services in rural areas.
- The report emphasized the need for a comprehensive overhaul of the sector, including investment, competition, and regulatory changes to support growth and development.
