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Mobile Telephony Steals the March over Fixed Line in the Moroccan Telecom Market

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Note -- this news article is more than a year old.

A low fixed line penetration of 11.1 percent is driving mobile growth in Morocco, especially, in remote areas where mobile telephony services are easier to access than fixed line telecom services. Mobile telephony's increasing prevalence, along with young users' demand for value added services and broadband, will encourage operators to provide innovative applications and content such as mobile lotteries and SMS quizzes.

New analysis from Frost & Sullivan finds that the market earned revenues of $6.32 billion in 2011 and estimates this to reach $7.42 billion in 2018.

"The Moroccan telecom market will also benefit from the advanced regulatory environment, which fosters competitive conditions," said Frost & Sullivan Senior Research Analyst Jonas Zelba. "On the other hand, intense competition is stoking price wars and thereby, slashing operating margins."

Mobile revenue growth is expected to be lesser than subscriber growth, mostly due to reduced tariffs and the addition of low-income subscribers, which decreases the average revenue per user.

Operators should acknowledge that the next wave of subscriber growth is expected from low-income consumers. Besides innovative and advanced services for high-end subscribers, they should offer simplified broadband services to penetrate the low-income segment effectively.

Such targeted services will also enable operators to better manage, churn and improve subscriber growth.

Morocco could also leverage its advantageous geographic location, as many large companies from Europe (especially France) view it as a viable outsourcing destination.

"These investors will be looking to outsource their production, customer service and call centres to reduce costs," noted Zelba. "Telecom operators can gain additional revenue streams by providing them with call centres and becoming a third-party service provider."

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Tags: Morocco