MOROCCAN INTERNET MARKET - Quarterly Report (December 2007)

Overall Market Status at the end of December 2007:

The Internet market continues to grow, with an increase in the total number of subscribers of 7.3% over the last three months, 31.6% compared to December 2006, and nearly 100.5% since December 2005.
The distribution of subscribers by access method is as follows, with a predominance of ADSL high-speed access representing 90.6% of the total Internet market.

Low-speed Market Status:

Changes in the overall low-speed market:
The number of low-speed Internet subscribers, including users of the Internet access option without a subscription and the wireless access offer2, increased from 7,862 in December 2006 to 47,968 in December 2007, showing a increase of more than 510.1% year-on-year.

Changes in the number of 'Classic' and 'Package' low-speed Dial-Up subscribers:
Data received from the FSI at the end of September 2007 shows a decrease in the number of subscribers to the 'Classic subscriptions' and 'Packages' access options. Year-on-year, the number of low-speed Dial-Up subscribers decreased by about 31.4%, from 5,302 subscribers to 3,637 subscribers.

High-speed Market Status:

Changes in the ADSL market:
The number of ADSL Internet subscribers is continuously increasing with a growth rate of nearly 21.9% year-on-year and nearly 92.1% since December 2005.
Access at 256 kbits/s represents the largest share with 43.6% of ADSL subscriptions in December 2007, followed by 512 kbits/s with 29.3%. The shares of 8 and 20 Mbit/s offers marketed for a few months remain low at 0.1% for the former and 0.3% for the latter.

Changes in the LL (Leased Lines) Internet market
The estimated number of Internet accesses via LL is almost stagnant. This situation follows a decline characterizing this type of access for more than two years.

Posted on February 8, 2008

ANRT