Practice case : mobile post paid agreement

I- Legal frame work II- Dispute procedure III- Practice case : Mobile post paid agreement IV- Decision of the ANRT 2

The National Telecommunications Regulatory Agency, by virtue of the article 8bis of the law N° modifying and completing the law N relative to the post office and to the telecommunications Strengthened the privileges of the Agency, by asking her in particular to watch the respect for the loyal competition and to cut the disputes relative to it. According to the capacities(measures) of the decree N concerning the procedure followed in front of the ANRT in disputes, in anticompetitive practices and in operations of economic concentrations, the Agency has for mission to educate the disputes with which it is seized; she can also autosaisir when she notices irregularities on the market and to take the measures which are imperative(lead) for that purpose. 3

For the instruction of the dispute related to anticompetitive practices, the Director of the ANRT appoints a reporter who has the responsibility to instruct the dispute and to collect all the useful elements for the treatment of the case. Once the report of the reporter is ended, it is transmitted to the parties in causes which have a deadline of a firm month to supply their comments. The ANRT bases itself on the principle of the contradictory, in the sense that it proceeds to the hearing of the parties in causes and to the collection of information, afterward the ANRT establishes its motivated analysis and the Director General cut the dispute and take the decision 4

Wana seized the ANRT for anticompetitive practices connected to the clauses of exit and duration of the mobile post paid contracts The parties in dispute : Wana against Medi Telecom and Maroc telecom The grievances of the request : Wana considere the contracts of long-term commitment as damaging competition because Maroc Telecom and Medi Telecom abuse their dominance : 1- Prevalency of the contracts the initial duration of which is of 24 months 2- The excessive and unfair retention of the subscribers of the mobile post paid including : * The systematic commitment of the subscriber for a duration of 24 months * The strongly dissuasive clauses of exit / release 5

DECISION ANRT / DG / N ° 08/11 OF 24 February 2011 ON THE REQUEST FILED BY WANA CORPORATE (WANA) AGAINST ITISSALAT Al-Maghrib (IAM) MEDI TELECOM AND ANTI- COMPETITIVE PRACTICES FOR THE DURATION AND CLAUSES OF MOBILE POST PAID EXIT 6

Principles :  Clair information ; transparrency; facilitate contracts termination ; suppression of contract termination penalties Details of the decision : Article 1 : The operators of public telecommunications networks (ERPT) are required to inform customers seamlessly across different mobile subscription plans with or without commitment, precisely the conditions of release related Article 2 : ERPT providing a subscription service mobile post paid are required to provide at their subscription contracts with commitment over 12 months Article 3 : ERPT providing a subscription service to a mobile phone service should offer post paid to any customer the right to terminate the contract without charge, at the expiration of the commitment period. Except for the case of evergreen from month to month, the customer must, in case of will resume, have the choice of a new period of engagement, as offered to a new customer. Any commitment on the duration must be expressly accepted by the customer. 7

Article 4 : A contract of subscription to a service mobile post paid must ensure the possibility for any customer to terminate his contract without charge, before the expiration of the commitment period for cause duly justified by the customer. An indicative list of legitimate reasons must be included in the subscription contract. Article 5 : For any contract at the time of acquisition with a terminal at a preferential price or acquisition of a particular advantage, operators of public telecommunications networks must meet the following conditions: In case of early termination of a subscription contract with a duration of 12 months, occurred before maturity, only the payment of the sum of the subscription fee corresponding to the remaining term of the contract may be required for the customer early termination; In case of early termination of a subscription contract for 24 months, came after the 12th month, fees for early termination of the customer must include: * - On acquisition of a terminal remission of at most the difference between the purchase price of the terminal by the customer for a period of 24 months and the purchase price for a period of 12 months; 8

* -In case of acquiring a particular advantage in the delivery of the value corresponding to said benefit. In case of early termination of a contract of 24-month subscription, which occurred before the end of the 12th month, fees for early termination of the customer must include: * - On acquisition of a terminal remission of at most the sum of the subscription fee until the 12th month, plus the difference between the purchase price of the terminal by the customer for a period of 24 months and its purchase price for a period of 12 months; - * - In case of acquiring a particular advantage in the delivery of more than the sum of the subscription fee until the 12th month cumulative value corresponding to said benefit. 9

Article 6 : No penalty, fixed or flat, can not be imposed on customers in the event of termination before expiry of the contract, in addition to the early termination fee specified in section 5 above. Article 7 : The ERPT specifying a period of one month from the date of notification of this decision, to present to the ANRT models of contracts reviewed in accordance with the present. 10

Thank you ABDELALI MADANI ABDELALI MADANI Head of Analysis and Dispute Inquiry 11