Maroc Telecom

Maroc Telecom, officially Itissalat Al-Maghrib S.A. (IAM), is Morocco's dominant telecommunications operator, established in 1998 following the restructuring of the former National Office of Posts and Telecommunications, and providing fixed-line telephony, mobile services, and internet access to a substantial portion of the population.^[1][2]
The company, headquartered in Rabat, was privatized in 2001 and has been dually listed on the Casablanca and Paris stock exchanges since 2004, with majority ownership held by the UAE-based e& group at 53% and the Moroccan state at 22%.^[3][4] It operates subsidiaries in nine African countries, serving over 81 million customers across mobile, fixed-line, and data services as of the third quarter of 2025, and has expanded infrastructure including fiber optics and 4G networks while preparing for 5G deployment.^[5][6]
Maroc Telecom has achieved market leadership in Morocco with a broad service portfolio encompassing prepaid and postpaid mobile plans, broadband internet, and value-added digital solutions, contributing to regional connectivity growth through investments like a €370 million partnership with the International Finance Corporation for digital infrastructure.^[2][4] However, it has faced significant regulatory scrutiny, including upheld antitrust fines and a MAD 6.4 billion settlement in 2024 for unfair competition practices against rival Inwi, stemming from market dominance abuses identified by Morocco's telecom regulator in 2020.^[7][8]

History

Founding and State Monopoly Era (Pre-1998 to Early 2000s)

The telecommunications infrastructure in Morocco prior to 1998 was managed exclusively by the state-owned Office National des Postes et Télécommunications (ONPT), which held a monopoly over postal services, fixed-line telephony, telegraphy, and nascent mobile operations.^[9] The ONPT introduced Morocco's first analog mobile radiotelephony service in 1987 and established the country's initial underwater optical fiber cable link in 1992, reflecting gradual modernization under state control amid limited infrastructure penetration.^[10] In response to increasing demand and international pressures for sector reform, the Moroccan government enacted Law 24-96 in 1997, which mandated the separation of postal and telecommunications functions and paved the way for partial liberalization while preserving state dominance.^[10] This legislation replaced the ONPT's integrated structure with specialized entities, culminating in the creation of Itissalat Al-Maghrib (IAM), commonly known as Maroc Telecom, as a Société Anonyme incorporated by deed on February 3, 1998.^[11] Assets previously held by the state under the ONPT were transferred to IAM on February 26, 1998, positioning it as the incumbent public operator responsible for national telecommunications services.^[12] As a fully state-owned entity, IAM retained monopoly rights over fixed telephony, telex, and integrated services digital network (ISDN) until December 31, 2001, pursuant to Morocco's commitments under international agreements, while mobile services began facing limited competition following the licensing of a second GSM operator (Médi Télécom) in 1999, with commercial launch in early 2000.^[10][13] During this era, IAM paid a "monopoly fee" to the state—equivalent to 6% of revenues in 2000, 4% in 2001, and 2% in 2002—while prioritizing network expansion to address chronic capacity shortages, including investments in digital switching and international connectivity.^[13] The company's operations emphasized universal service obligations, though teledensity remained low, with fixed-line penetration under 5% by the late 1990s, constrained by bureaucratic inefficiencies and underinvestment typical of state monopolies.^[10]

Privatization and Partial Liberalization (2000s)

The telecommunications sector in Morocco began transitioning from a state monopoly toward partial liberalization in the late 1990s, with key legislative changes setting the stage for 2000s reforms. Law 24-96, enacted in 1996, formally ended Maroc Telecom's exclusive control over services and established the National Telecommunications Regulatory Agency (ANRT) in 1998 to oversee competition and licensing.^[14] These measures addressed chronic underinvestment and limited access, as fixed-line penetration remained below 5% of the population entering the decade, prompting government efforts to attract foreign capital amid fiscal pressures.^[15] Partial privatization of Maroc Telecom (then Itissalat Al-Maghrib, or IAM) occurred in January 2001, when the state transferred 35% of its equity to France-based Vivendi Universal for $2.1 billion, marking one of Morocco's largest divestitures at the time.^[10] This sale reduced direct state ownership while retaining majority control, with proceeds funding public debt reduction and infrastructure expansion; it was praised for its transparency relative to regional peers, though critics noted Vivendi's subsequent resale of stakes diluted initial efficiency gains.^[16][17] Further share offerings followed, including public listings on the Casablanca and Paris stock exchanges in December 2004, alongside gradual state divestments in 2005 and 2006 that trimmed holdings below 50% temporarily before partial reacquisitions.^[18] Liberalization accelerated in mobile services, with ANRT auctioning a second GSM license in early 2000 to a consortium led by Portugal Telecom (forming Médi Télécom, later Orange Maroc), ending Maroc Telecom's mobile monopoly and spurring subscriber growth from under 1 million to over 10 million by decade's end.^[16] Fixed-line competition lagged, with monopoly retention until 2002 as planned, but interconnection disputes and high fees from Maroc Telecom hindered new entrants like Maroc Connect (launched 2006 as Wana, now Inwi).^[19] Overall, these reforms boosted sector investment to 3% of GDP by 2000 and facilitated infrastructure upgrades, though dominant incumbency preserved Maroc Telecom's market share above 60% in key segments.^[20][21]

Acquisition by Etisalat and Post-2010 Restructuring

In November 2013, Etisalat signed a definitive agreement with Vivendi to purchase its 53% stake in Maroc Telecom for €4.2 billion in cash.^[22] The deal, which marked one of the largest acquisitions in the Middle East telecom sector, faced regulatory scrutiny in Morocco and Europe but proceeded as Etisalat aimed to expand its influence in North Africa.^[23] Completion occurred on May 14, 2014, enabling Etisalat to consolidate Maroc Telecom's financials and operations under its control.^[24] As a condition tied to the acquisition for regulatory and strategic alignment, Etisalat agreed in May 2014 to divest its subsidiaries in six West African countries—Benin, Côte d'Ivoire, Gabon, Niger, Central African Republic, and Togo—to Maroc Telecom for $650 million.^[25] This asset transfer, finalized in January 2015 at a total cost of approximately $720 million after adjustments, significantly expanded Maroc Telecom's international portfolio, adding over 10 million subscribers and shifting its revenue focus toward sub-Saharan Africa.^[26] The acquisitions were rebranded under the Moov banner, integrating networks and operations to leverage synergies in French-speaking markets.^[27] Post-acquisition restructuring emphasized operational efficiency and African growth, with Maroc Telecom's customer base expanding 26% from 2014 to 2015 to reach 51 million, of which 59% were in sub-Saharan regions.^[28] Etisalat financed the purchase through a €3.15 billion syndicated loan from 17 banks, while Maroc Telecom funded its asset buys via internal cash flows and debt, optimizing its balance sheet amid increased capital expenditures for network upgrades.^[29] Etisalat initially held an effective 48.4% voting stake due to joint investment structures but increased it to full 53% control in 2021 by acquiring partner interests for $505 million, further streamlining governance.^[30] These moves refocused the company on digital infrastructure and cross-border synergies, though challenges like regulatory disputes in Africa persisted.^[31]

Recent Governance Reforms (2020s)

In June 2025, Maroc Telecom transitioned from a dual governance model—comprising a Supervisory Board and a Management Board—to a unified Board of Directors structure, following approval by shareholders at a general meeting on June 18, 2025.^[32][33] This reform aimed to streamline decision-making processes, enhance strategic agility, and improve operational efficiency amid competitive pressures in the telecommunications sector.^[34][35] The unified board, chaired by Mohamed Benchaaboun—a former Moroccan finance minister appointed to the supervisory board chairmanship on February 25, 2025—consolidates oversight and executive functions to foster greater transparency and value creation for shareholders.^[36][37] Company statements indicate the change addresses limitations of the prior two-tier system, which had slowed responses to market dynamics, including digital transformation and international expansion via subsidiaries like Moov Africa.^[32][38] This restructuring aligns with broader efforts to adapt to regulatory and technological shifts in Morocco's telecom landscape, such as accelerated fiber optic deployments mandated by the National Telecommunications Regulatory Agency (ANRT), though it remains distinct from infrastructure-sharing mandates issued in October 2025.^[39] No prior major governance overhauls were reported in the early 2020s, with the 2025 changes marking the decade's principal reform to modernize corporate control.^[40][41]

Ownership and Corporate Structure

Shareholder Composition

As of the latest available data from its 2024 financial report, Maroc Telecom's share capital is divided among three primary categories of shareholders: Etisalat (now operating as e&), the Kingdom of Morocco, and public investors. Etisalat holds a controlling 53% stake, equivalent to 465,940,477 shares, through its subsidiary Etisalat International North Africa LLC, which it fully owns following acquisitions completed in 2021.^[42][43] The Moroccan government maintains a 22% ownership, comprising 193,400,975 shares, primarily managed through entities like the Société de Gestion des participations de l'État (SGE).^[42][44] The remaining 25% of shares, approximately 219,753,888 shares, are held by public and institutional investors, with the stock listed on both the Casablanca Stock Exchange and Euronext Paris.^[42][43] Among institutional holders, stakes are minor; for instance, Legal & General Investment Management holds about 0.15% (1,279,945 shares) as of mid-2024, while others like Schroder Investment Management own around 0.06%.^[45] This free float structure supports liquidity but ensures majority control remains with Etisalat, which acquired its initial stake from Vivendi in 2014 for approximately $5.7 billion, later consolidating to 53% through additional purchases.^[44] No material changes to this composition were reported in Maroc Telecom's first-half 2025 results or subsequent disclosures as of July 2025.^[32] This ownership reflects the partial privatization initiated in the early 2000s, balancing foreign investment with state influence, though Etisalat's dominant position has driven strategic decisions, including expansions into sub-Saharan Africa.^[42][1] Sources such as official financial filings provide the most direct verification, superseding secondary market summaries which align but may lag in real-time updates.^[43]

Board and Executive Leadership

In June 2025, Maroc Telecom transitioned from a dual governance structure—comprising a supervisory board and a management board—to a unified Board of Directors, approved by shareholders at the annual general meeting on June 18, 2025, to streamline decision-making and enhance operational efficiency.^[33][34] The new board was appointed for a six-year term ending with the general meeting approving the fiscal year ending December 31, 2030, effective upon commercial register update.^[46] The Board of Directors includes representatives from major shareholders, such as the Moroccan state via the Mohammed VI Investment Fund and Etisalat (e&), reflecting the company's ownership split of approximately 53% by Etisalat and 36% by the state as of 2025.^[37] Key members are: Mohamed Benchaâboun, appointed Chairman of the Board and Chief Executive Officer in February 2025 for a two-year term extendable to March 2027, leads the executive functions following the governance unification; he succeeded Abdeslam Ahizoune, who had served as CEO since February 1998 and oversaw the company's privatization and international expansion.^[36][40] Benchaâboun, previously Morocco's Finance Minister (2019–2021) and head of the Mohammed VI Investment Fund, was confirmed in his expanded role by the board on June 19, 2025.^[33] The executive team reports to Benchaâboun and includes Brahim Boudaoud as General Counsel and Director of Regulation and Legal Affairs (since 2014), and François Vitte as Chief Administrative Officer and Chief Financial Officer.^[40] This structure emphasizes centralized leadership amid competitive pressures in Morocco and Sub-Saharan Africa operations.^[47]

Domestic Operations

Fixed-Line Telephony

Maroc Telecom, operating as Itissalat Al-Maghrib (IAM), maintains the dominant position in Morocco's fixed-line telephony market, with approximately 1.7 million lines in service as of December 31, 2024.^[48] This represents a decline of 7.4% from the previous year, attributable to the persistent shift toward mobile telephony and over-the-top voice services amid low overall fixed-line penetration rates of around 8% of the population.^[48][49] The company's fixed-line operations generated revenues bundled with internet services totaling MAD 9.915 billion in 2024, marking a 2.3% increase year-over-year, driven partly by data integration rather than pure voice usage.^[42] As the legacy state-owned operator, Maroc Telecom controls over 54% of the national fixed-line market share, ahead of competitors like Médi Télécom and Wana Corporate, in a sector with total subscriptions reaching 3.037 million lines by the end of 2024.^[50] Its infrastructure primarily consists of a legacy copper-based public switched telephone network (PSTN), supplemented by fiber-to-the-x (FTTx) deployments for voice-over-IP (VoIP) delivery, particularly in urban centers like Casablanca and Rabat where coverage density is highest.^[49] Rural expansion has been limited by economic viability, contributing to uneven service quality and prompting regulatory incentives for shared infrastructure investments, such as the MAD 4.4 billion fiber-sharing agreement with Inwi announced in 2025.^[51] Fixed-line telephony services include domestic and international calling, interconnection with mobile networks, and premium rate lines, though usage has contracted due to mobile dominance, with voice traffic volumes decreasing steadily since the early 2010s.^[52] Maroc Telecom has responded by bundling telephony with broadband offerings, enhancing VoIP capabilities over its evolving next-generation network (NGN), which supports higher-quality calls but faces challenges from competition and declining ARPU in voice-only segments.^[42] Regulatory oversight by the National Telecommunications Regulatory Agency (ANRT) enforces universal service obligations, ensuring baseline access, yet fixed-line growth remains subdued compared to mobile and digital alternatives.^[50]

Mobile Telephony Services

Maroc Telecom provides mobile telephony services across Morocco through its extensive GSM-based network, which has evolved to include advanced data capabilities. As of June 30, 2025, the company served 18.93 million mobile subscribers in the domestic market, maintaining its position as the leading operator amid competition from Orange Maroc and Inwi.^[53][49] The operator's mobile segment benefits from widespread coverage, particularly in urban and rural areas, supported by ongoing infrastructure investments that have contributed to Morocco's overall mobile penetration exceeding 130% by mid-2025, with total subscribers reaching 58.8 million.^[50] The network initially focused on voice and basic SMS services following the liberalization of the sector in the late 1990s, with GSM technology forming the foundation. Maroc Telecom expanded into 3G services in the mid-2000s to meet growing data demands, followed by the deployment of 4G LTE networks to enhance speeds and capacity for mobile internet. By 2025, the company had achieved significant 4G coverage, enabling high-speed data services that underpin its revenue from mobile broadband.^[49] In July 2025, Maroc Telecom, along with rivals Inwi and Orange, acquired 5G licenses from the National Telecommunications Regulatory Agency (ANRT) for a total investment exceeding MAD 2.1 billion, positioning the operator for next-generation services. Commercial 5G rollout is scheduled to commence in November 2025, initially targeting major cities, airports, and event venues such as those for the African Cup of Nations in December 2025, with commitments for 45% population coverage by 2026 and 85% by 2030.^[54][55] To accelerate deployment ahead of the 2030 FIFA World Cup co-hosting, Maroc Telecom signed a strategic partnership with Inwi in March 2025 for shared 5G infrastructure, aiming to reduce costs and expedite nationwide implementation while ensuring compliance with spectrum allocation terms.^[56][57] This transition supports advanced applications like ultra-reliable low-latency communications, though full realization depends on regulatory enforcement and operator execution in a competitive environment marked by price pressures and interconnection asymmetries.^[32]

Broadband and Digital Services

Maroc Telecom provides fixed broadband access in Morocco via asymmetric digital subscriber line (ADSL) and fiber-to-the-home (FTTH) networks, serving residential and business customers with high-speed internet connectivity. ADSL remains a legacy technology for broader rural and legacy coverage, while FTTH deployment has accelerated to support higher bandwidth demands driven by streaming, remote work, and digital economy growth. As of the end of 2024, the company's domestic broadband subscriber base reached nearly 1.6 million customers, reflecting a 41% increase in FTTH subscribers amid competitive pressures and infrastructure investments.^[42] Maroc Telecom commands a 62% market share in the ADSL segment and 50% in FTTH, positioning it ahead of rivals like Inwi and Orange Maroc, though total national fixed broadband penetration lags behind mobile alternatives due to geographic challenges in rural areas.^[58] In April 2025, Maroc Telecom upgraded its standard FTTH offering by doubling download speeds from 100 Mbps to 200 Mbps for existing subscribers at no additional cost, maintaining the monthly price at 500 Moroccan dirhams; this adjustment also included new perks like enhanced streaming support to counter competitive pricing from operators.^{[59] [60]} The FTTH rollout continues to expand urban coverage, with national fiber connections totaling approximately 990,000 by early 2025, enabling symmetric upload/download capabilities superior to ADSL's limitations in latency and peak speeds.^[58] These enhancements align with Morocco's broader digital transformation, where fixed broadband supports only a fraction of the 40.2 million total internet subscriptions recorded at the end of 2024, the majority being mobile-based.^[61] Complementing broadband infrastructure, Maroc Telecom's digital services include internet protocol television (IPTV) under the Istyplay platform, delivering on-demand video content and live channels over IP networks integrated with fiber and ADSL subscriptions.^[6] Additional offerings encompass cloud-based business applications through partnerships, such as a 2025 collaboration with Zoho for enterprise tools facilitating digital workflow automation and data management.^[62] These services leverage the company's fixed-line backbone to provide bundled packages combining internet, voice, and content, though adoption remains constrained by affordability and competition from over-the-top streaming alternatives; revenue from digital segments has grown alongside FTTH expansion but faces regulatory scrutiny on interconnection rates.^[52]

International Expansion

Establishment of Moov Africa

Moov Africa was established as a unified brand identity for Maroc Telecom's subsidiaries across Sub-Saharan Africa on January 1, 2021, consolidating operations previously conducted under disparate local names such as Moov, Telecel, and ONATEL.^[3][63] This rebranding encompassed 10 subsidiaries in countries including Benin, Burkina Faso, Côte d'Ivoire, Gabon, Mali, Mauritania, Central African Republic, Chad, Niger, and Togo, serving over 70 million customers collectively and positioning the group as a major regional telecom operator.^[64][65] The initiative aimed to foster synergies in marketing, network development, and service offerings, enhancing competitiveness in high-growth markets amid rising mobile penetration.^[66] The foundation for Moov Africa traces to Maroc Telecom's international expansion starting in the early 2000s, beginning with majority stakes in Mauritel (Mauritania) in 2000 and Malitel (Mali) around the same period, followed by a 51% acquisition in Burkina Faso's ONATEL in December 2006.^[67] Significant growth occurred between 2014 and 2015, when Maroc Telecom acquired six additional subsidiaries from Etisalat—covering Benin, Côte d'Ivoire, Gabon, Niger, Central African Republic, and Togo—for approximately €650 million, with the deal agreed in May 2014 and finalized on January 27, 2015.^[68][69] These acquisitions, part of Etisalat's restructuring after its 2010 purchase of a 53% stake in Maroc Telecom, expanded the group's footprint to nearly a dozen markets, emphasizing francophone West and Central Africa where infrastructure gaps offered opportunities for investment in mobile and broadband services.^[70] By unifying under Moov Africa, Maroc Telecom sought to streamline branding and operational efficiencies, investing in 4G/5G rollouts and digital services to capitalize on over 20 years of regional presence.^[4] This structure has since driven subscriber growth, with Moov Africa entities contributing the bulk of the group's international customer base exceeding 50 million by mid-2025.^[71]

Operations in Sub-Saharan Africa

Maroc Telecom operates in Sub-Saharan Africa primarily through its Moov Africa brand, which encompasses subsidiaries providing mobile telephony, data services, and mobile money across multiple countries.^[3] These operations span Benin, Burkina Faso, Côte d'Ivoire, Gabon, Mali, Niger, Central African Republic, Chad, and Togo, with additional presence in Mauritania, focusing on expanding network coverage and digital services in underserved markets.^[3][72] As of the first nine months of 2025, Moov Africa subsidiaries drove significant customer base expansion, contributing to the group's total reaching 81 million subscribers, with international mobile users alone numbering 57.5 million by mid-2025.^[73][74] Revenues from these operations grew 5.7% year-over-year in Q3 2025, generating MAD 18.7 billion for the full year 2024, positioning them as the primary growth engine amid stagnant domestic performance.^[75][76] Investments in Moov Africa escalated 75% in 2024 to support infrastructure upgrades, including a capital expenditure of MAD 7.96 billion directed toward network enhancements and 5G rollout preparations.^[77][78] This funding, supplemented by €370 million in loans from the International Finance Corporation in June 2025, targeted improved mobile internet quality and connectivity in eight key subsidiaries.^[4] Growth has been fueled by rising demand for mobile data and money transfer services, with an 8.1% subscriber increase in African operations by end-2024.^[79][73]

Strategic Partnerships and Investments

Maroc Telecom has formed key financing partnerships to support its international expansion, particularly in sub-Saharan Africa through its Moov Africa brand. In June 2025, the company secured €370 million in loans from the International Finance Corporation (IFC), comprising two facilities to enhance operations in Chad and Mali.^[4] These funds target 4G network rollouts, mobile connectivity improvements, and service quality upgrades for subsidiaries Moov Africa Chad and Moov Africa Malitel, fostering long-term infrastructure development aligned with African Union digital market goals by 2030.^[80][4] Investments in Moov Africa subsidiaries, spanning ten countries including Benin, Burkina Faso, Gabon, Ivory Coast, and Mauritania, have accelerated to drive revenue growth and customer base expansion.^[32] Capital expenditures in these operations increased by 29% in the first nine months of 2025, focusing on mobile and broadband infrastructure to capitalize on rising demand.^[71] This follows a 75% year-over-year rise in 2024 investments to MAD 7.96 billion (approximately $800 million), underscoring sustained commitment to network densification and digital services.^[76] Earlier strategic outlays include a €150 million investment in June 2023 for a 9,414 km subsea cable linking West African subsidiaries to European international loops, enhancing bandwidth capacity for regional operations.^[81] These efforts have positioned Moov Africa to contribute increasingly to group revenues, with a 5.7% rise in Q3 2025 from African activities.^[5]

Financial Performance

Revenue Growth and Segmentation

In 2024, Maroc Telecom Group's consolidated revenues totaled MAD 36.699 billion, marking a nominal decline of 0.2% from MAD 36.786 billion in 2023, though adjusted for constant exchange rates the growth was 1.2%.^[48] This modest overall performance reflected offsetting dynamics, with domestic revenues in Morocco contracting amid competitive pressures and regulatory factors, while international operations grew.^[42] Over the prior year, revenues had expanded 3.0% from MAD 35.731 billion in 2022, driven primarily by international expansion.^[42] Revenues are segmented geographically, with operations in Morocco accounting for approximately 52% of the total in 2024 (MAD 19.143 billion), down 2.0% from MAD 19.543 billion in 2023 and flat from 2022 levels.^[42] International revenues from Moov Africa subsidiaries contributed the remaining 51% (MAD 18.706 billion), up 1.8% nominally from MAD 18.381 billion in 2023 and 8.5% from MAD 17.242 billion in 2022, with 4.6% growth at constant exchange rates in 2024.^{[48] [42]} This segmentation underscores the group's increasing reliance on Sub-Saharan African markets to counterbalance stagnation in its home market. Within Morocco, revenues break down into mobile services and fixed-line operations. Mobile revenues fell 5.5% to MAD 10.992 billion in 2024 from MAD 11.630 billion in 2023, attributable to a 4.7% decline in average revenue per user (ARPU) to MAD 43.3 amid heightened competition and price erosion.^[48] Fixed-line revenues, encompassing voice and data, rose 2.3% to MAD 9.915 billion from MAD 9.688 billion, propelled by fixed data segment growth of 9.2% to MAD 4.691 billion, fueled by a 29% expansion in fiber-to-the-home (FTTH) subscribers.^{[48] [42]} Internationally, Moov Africa's revenue growth stemmed from data-centric services, with mobile data up 15.6%, fixed internet up 21.1%, and mobile money services up 14.4%, reflecting rising digital adoption and diversification beyond traditional voice.^[48] The following table summarizes consolidated revenue trends: This geographic and service-based segmentation highlights vulnerabilities in Morocco's mature mobile market, where legacy voice revenues continue to erode, contrasted by resilience in fixed broadband and African data/mobile money expansion.^[48]

Profitability and EBITDA Trends

Maroc Telecom Group has demonstrated resilient profitability, characterized by stable net profit margins around 15-18% in recent years, supported by its dominant position in Morocco's telecommunications market and cost efficiencies, despite regulatory pressures and varying performance in African operations. In 2024, the group reported adjusted net profit attributable to shareholders of approximately MAD 6.5 billion, reflecting a net margin of about 18%, bolstered by higher contributions from mobile data and international subsidiaries.^[48][82] This stability contrasts with earlier periods, such as 2020-2022, when net profits fluctuated due to COVID-19 impacts on roaming and enterprise services, but rebounded through data service growth and operational leverage. EBITDA trends indicate consistent high margins, averaging 47-50% group-wide from 2020 to 2025, driven primarily by Morocco's operations (margins exceeding 55-58%) which offset lower African subsidiary margins of 40-45%. For the full year 2024, group EBITDA stood at roughly MAD 18.4 billion, with a margin near 50%, up slightly from 2023 levels amid revenue diversification into digital services.^[83][48] In the first half of 2025, EBITDA exceeded MAD 9 billion, maintaining a 50.3% margin despite fiscal hikes and competition, reflecting effective cost management in fixed and mobile segments.^[32] By the first nine months of 2025, EBITDA reached MAD 13.7 billion, down 2.2% year-over-year due to subdued domestic growth, yet the margin held at 50.2%, underscoring operational discipline.^[75] These trends highlight a pattern of margin compression risks from international expansion, where lower profitability in Sub-Saharan markets tempers overall gains, yet domestic efficiencies ensure sustained cash generation for investments in 5G and broadband.^[83] Adjusted net income for H1 2025 rose 1.6% to MAD 2.96 billion, affirming underlying profitability amid external headwinds.^[84]

Debt, Investments, and Market Valuation

As of June 30, 2025, Maroc Telecom's consolidated net debt stood at MAD 17,624 million, equivalent to 0.9 times annualized EBITDA, reflecting a controlled leverage position amid operational cash flows supporting repayments.^[32] This marked a reduction from MAD 22,436 million at the end of 2024, primarily due to debt repayments and stable EBITDA generation.^[85] By December 31, 2024, net debt had represented 1.1 times full-year EBITDA, with the company maintaining a net debt-to-EBITDA ratio below 1.5x in recent periods, indicating prudent financial management despite expansionary pressures in African markets.^{[42] [48]} Maroc Telecom's investment strategy emphasizes capital expenditures for network upgrades and geographic expansion, particularly in Sub-Saharan Africa via its Moov Africa subsidiaries. In the first half of 2024, the group allocated MAD 3.2 billion to investments, a 9.8% increase year-over-year, focused on 4G rollout and infrastructure enhancements.^[86] A three-year commitment includes a MAD 10 billion program (excluding taxes) for domestic and international assets, underpinning commitments to regulators and growth in mobile broadband.^[52] Internationally, a €370 million financing partnership with the International Finance Corporation in June 2025 targets improved connectivity in Chad and Mali, aligning with broader plans to invest approximately 15% of annual revenues through 2028 on 4G/5G expansion and digital services.^{[4] [87]} In terms of market valuation, Maroc Telecom's market capitalization reached approximately MAD 104.20 billion (around $11.30 billion) as of recent trading on the Casablanca Stock Exchange, with a trailing price-to-earnings ratio of 14.77 and enterprise value of MAD 130.37 billion.^[88] The stock trades at an EV/EBITDA multiple of about 9.92, reflecting steady cash flows from diversified operations despite currency risks in African subsidiaries.^[89] Dividend yields hover around 4-5%, supported by consistent payouts, though valuation metrics remain sensitive to macroeconomic factors in emerging markets.^[90]

Regulatory Framework and Controversies

Oversight by ANRT and Market Liberalization

The Agence Nationale de Réglementations des Télécommunications (ANRT), established in 1997 through Law No. 24-96 on postal and telecommunications services, serves as Morocco's independent regulatory authority overseeing the telecom sector, including the promotion of competition and resolution of disputes among operators such as Maroc Telecom.^[91][10] This law marked the initial step toward market liberalization by dismantling the state monopoly previously held by the Office National des Postes et Télécommunications (ONPT), restructuring it into the separate entities of Maroc Telecom for telecommunications services and Barid Al-Maghrib for postal operations.^[10][14] Liberalization progressed incrementally, beginning with mobile services. In 1999, ANRT awarded a second GSM license to Médi Télécom (now Orange Maroc) for 10.6 billion Moroccan dirhams, introducing competition to Maroc Telecom's initial monopoly in mobile telephony granted earlier that decade.^[10] A third mobile license followed in 2000, with further expansion via three additional mobile service licenses in 2006, facilitating broader market entry and subscriber growth from approximately 400,000 in 1999 to over 12 million by 2005.^[91][10] Fixed-line services liberalized more slowly; ANRT issued a call for tenders for a second fixed telephony license in April 2002, awarding it in 2005 to Médi Télécom for 75 million dirhams and a third to Maroc Connect (now Inwi) for 306 million dirhams, though fixed-line penetration remained limited compared to mobile.^[10][14] ANRT's oversight extends to spectrum allocation, interconnection standards, and enforcement of competitive practices, bolstered by Law No. 55-01 in 2004, which expanded its prerogatives to include universal service obligations and investment incentives.^[10] In 2004, ANRT issued general guidelines for telecom liberalization covering 2004–2008, emphasizing market opening and infrastructure development, followed by measures such as local loop unbundling and number portability decisions in 2015 to further erode barriers to entry.^[91] Subsequent updates, including the 2023 General Guidelines, continue to guide sector evolution, with ANRT managing licensing for advanced technologies like 4G in 2015 and facilitating infrastructure sharing to sustain competition amid Maroc Telecom's dominant position.^[91][49] This regulatory framework has driven sector growth while addressing challenges like uneven fixed-line adoption and the need for ongoing antitrust vigilance.^[10]

Antitrust Violations and Fines

In January 2020, the Agence Nationale de Réglementation des Télécommunications (ANRT) imposed a fine of 3.3 billion Moroccan dirhams (approximately $330 million) on Itissalat Al-Maghrib (Maroc Telecom) for abusing its dominant position in the fixed broadband market, specifically by obstructing competitors' access to its passive infrastructure and delaying local loop unbundling.^[92][93] The ANRT determined that these practices violated competition rules established in 2014, limiting rivals' ability to offer competitive services and perpetuating Maroc Telecom's market control despite regulatory mandates for infrastructure sharing.^[94] In July 2022, ANRT levied an additional penalty equivalent to $238 million against Maroc Telecom for non-compliance with directives on fair competition, calculated as a daily fine of 4.1 million dirhams for each day of violation related to ongoing access disputes.^[95][96] This sanction stemmed from persistent refusal to implement unbundling of the copper local loop, which ANRT viewed as an extension of prior anti-competitive conduct aimed at maintaining monopoly advantages in wholesale access.^[97] Commercial courts have also enforced damages in related antitrust disputes. In January 2024, a Moroccan court ordered Maroc Telecom to pay 6.36 billion dirhams (about $636 million) to competitor Inwi (formerly Wana Corporate) for unfair practices, including abuse of dominance that harmed Inwi's fixed-line operations; this ruling was upheld by the Casablanca Court of Appeal in July 2024, confirming liability for lost revenues due to restricted network access.^[98][7] By September 2024, Maroc Telecom settled by paying approximately 6.4 billion dirhams to Inwi, marking one of the largest antitrust damage awards in the sector.^[8] These court outcomes built on ANRT's initial findings of infrastructural gatekeeping, with critics arguing the fines underscore systemic delays in enforcing liberalization against the incumbent's entrenched position.^[99] In October 2024, a further commercial court ruling fined Maroc Telecom for continued refusal to share unbundled network access, exacerbating its debt amid efforts to preserve fixed broadband dominance.^[100] Maroc Telecom has contested several penalties, including appeals against the 2020 ANRT fine, citing procedural issues and disproportionate amounts, though regulatory and judicial bodies have largely affirmed the violations as threats to market competition.^[94][101]

Debates on Monopoly Power and Competition Impacts

Maroc Telecom's commanding presence in Morocco's telecommunications landscape, with a 36.1% overall market share as of 2024 and dominance exceeding 50% in fixed broadband and internet services, has fueled debates over whether its structural advantages perpetuate monopoly-like conditions that undermine competition. Liberalization since 1997, which ended IAM's exclusive state-backed control, introduced rivals like Inwi and Orange Maroc, yet the incumbent retains control over vast legacy infrastructure, including copper networks essential for local loop unbundling (LLU). Regulators contend this enables exclusionary tactics, such as protracted delays in granting rivals access to wholesale services, which have been documented as impeding market entry and service deployment since at least 2013.^{[49][50][102]} Critics, including competitors and the ANRT, argue that IAM's practices elevate barriers to effective rivalry, resulting in subdued investment by new entrants, fragmented network rollout, and potentially inflated pricing for fixed-line and broadband consumers; for example, Morocco's Court of Auditors has linked IAM's fixed-internet monopoly to constraints on online service expansion and digital economy growth. This view gained traction through enforcement actions, such as the ANRT's 2020 imposition of a 3.3 billion MAD ($330 million) fine for dominance abuse, upheld in appeals, and a 2024 commercial court order for IAM to pay Inwi 6.4 billion MAD ($640 million) in damages for unfair competition via infrastructure withholding. These penalties, representing up to 17% of IAM's annual revenue, underscore regulatory assessments that unchecked dominance distorts allocative efficiency and innovation incentives in a sector vital for Morocco's connectivity goals.^[94][8][7] Defenders of IAM's market position, including the company itself, emphasize that its scale facilitates extensive infrastructure investments—covering rural and remote areas where rivals underinvest—driving sector-wide subscriber growth, with mobile penetration surging over 100% post-liberalization amid falling tariffs. Empirical analyses reveal a more competitive mobile subsector, where concentration has eased with the third operator's entry, yielding lower prices and broader access, though fixed services lag with higher Herfindahl-Hirschman Index values indicating oligopolistic persistence. IAM challenges fines in court, asserting that access denials stem from technical and contractual disputes rather than predatory intent, and that forced sharing could erode incentives for private capital in network upgrades.^[103][19] Recent regulatory moves, like the ANRT's October 2025 mandate for fiber optic infrastructure sharing, intensify these debates by targeting IAM's entrenched advantages to accelerate 5G and broadband competition, potentially at the cost of reduced returns on the incumbent's historical outlays. While such policies aim to mitigate dominance-induced inefficiencies, outcomes remain contested: proponents foresee enhanced consumer welfare through diversified offerings, whereas skeptics warn of duplicated investments and service quality dilution absent IAM's coordinating role. Overall, the discourse reflects tensions between preserving investment-driven expansion and enforcing contestability in a market where IAM's 19.1 million mobile customers in Morocco alone underscore its pivotal, if polarizing, influence.^{[104][105][106]}