Qtel, Etisalat ‘Eyeing’ Investment In Morocco’s Maroc Telecom

Two Arab Gulf-based telecoms firms are reportedly considering buying a controlling stake in Morocco’s largest telecoms operator, Maroc Telecom.

This is according to a Financial Times report that says Qatar’s Qtel and the United Arab Emirates’ (UAE) Etisalat have expressed interests in acquiring a 53% stake in the North African telco, which is currently owned by French media group, Vivendi.

Maroc is the country’s biggest telecommunications operator, as the firm has a 47.5% and 44% share respectively of the country’s mobile phone services and high-speed internet markets.

Matthew Reed – senior analyst for the Middle East and Africa, at Informa Telecoms & Media – told ITWeb Africa that a possible interest from Qtel and Etisalat in acquiring Maroc Telecom could be broadly be in line with Arab Gulf state operators’ strategies of expanding their presence in potentially high-growth markets.

Etisalat, for instance, has set up operations in African nations such as Nigeria and Egypt, as its home UAE market has become saturated with a mobile penetration rate that is well over 100% according to Informa Telecoms and Media research.

“Its business in the Middle East is pretty much mature, it’s saturated really,” Reed told ITWeb Africa.

“I think the company is looking overseas for growth and the markets within its regions it hasn’t been focusing on,” explained Reed.

And as for Qtel’s interest in Maroc Telecom, Reed says the move for the Qatari company to potentially purchase a stake in Morocco’s biggest telco could be in line with its already existing presence in North Africa.

“Qtel already has operations in North Africa in Algeria and Tunisia,” he said.

However, according to Reed, Maroc Telecoms has not been performing well lately, something he says possible buyers would have to take into consideration.

Maroc Telecom posted a 22% drop in first-half net profit, as the firm reported earlier this year that it had voluntary redundancy costs and falling sales.

According to a Reuters report, Maroc’s sales fell to 11.9 billion dirhams after turnover from fixed-line phone services slid 11% and mobile turnover dropped 5.1% to 8.94 billion dirhams, despite increases in number of users for both segments.

“They would need to do a detailed assessment of the prospects for Maroc Telecom and the markets in which it operates and weigh that up against the costs of the acquisition,” said Reed.

“Also Morocco’s mobile market has become quite competitive, with three mobile operators engaging in quite fierce price competition,” he added.

The North African country’s mobile penetration rate was reported to be at of 122% at end-June 2012, according to Informa Telecoms & Media.