A current addition to the company file of UAE telecoms operator Etisalat, Maroc Telecom is creating new inroads in West and Central African souks.
Maroc Telecom has strengthened its tactical focus on Africa following its conquest in May by UAE operator Etisalat.
Already there on four markets, the Moroccan corporation is currently taking up the operations of the Abu Dhabi-based group in six francophone sub-Saharan nations. This reorganization makes logic for parties mutually.
In spite of a current improvement in results, Maroc Telecom faces severe rivalry in its home market, where development possibilities are indefinite because mobile penetration charges are already high.
Contrary to, sub-Saharan claim is dynamic and is possible to continue so as mobile telecoms play a serious role in the public and economic life of nations where fixed-line infrastructure is irregular.
In the meantime, for Etisalat, the $650m earned from selling its West African subsidiaries to Maroc Telecom will assist to settle the 4.2 billion euro cost of buying the 53% controlling stake in the Moroccan operator from France’s Vivendi.
Vivendi made a decision to sell its interest as part of a drive to see off marginal assets and focus on its hub media investments. Marking a new development chance, Etisalat initially proposed an offer for the stake in January 2013. There was also a competitor bid from Qatar’s Ooredoo, but it pulled out the race in June 2013. Vivendi and Etisalat finally pronounced conformity in November.
Like numerous other Moroccan service segment groups, Maroc Telecom has recognized west and central Africa as vital objective markets for two key reasons: rivalry is less intense there than Europe; and there is potential for quicker enlargement rates than in its home market. Mobile penetration in Morocco is approximately 130% and rivalry between the three fixed-line and mobile contributors has urged broadband prices down.
Generally, Maroc Telecom had 38 million customers at the end of June. The achievement of the six West African operations should increase that total extensively.