Medi Telecom

completed

In August 1999, Medi Telecom S.A. was awarded a license, through a competitive tender, to build and operate the second nationwide GSM 900 network in Morocco. The only other GSM license in Morocco is held by the incumbent, Maroc Telecom (formerly Itissalat-al-Maghrib, or IAM). The initial stage of the project was implemented in only eight months and the company launched its commercial operations on March 29, 2000. Under the license agreement, Meditel is required to achieve a population coverage with its network of at least 95% within five years. The project''s developmental impacts include introducing competition to Morocco''s telecom sector, and extending telecoms access to a wide area of the country and segment of the population currently undeserved by the incumbent''s network. The introduction of competition has already reduced tariffs in Morocco and the rate of cellular penetration has increased substantially as a result. IFC''s presence is crucial because of the large size of the potential exposure, IFC''s ability to attract international banks under the B loan program and IFC''s experience in structuring complex financings in emerging markets.