Introducing Telecommunications Competition through a Wireless License : Lessons from Morocco

Introducing Telecommunications Competition through a Wireless License : Lessons from Morocco

In August 1999 the Moroccan government awarded a second mobile telecommunications license through international tender. All bidders made commitments on quality, coverage, and tariffs that would significantly expand and improve telecommunications se...

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Bibliographic Details
Main Authors: Wellenius, Bjorn, Rossotto, Carlo Maria
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
TELECOMMUNICATIONS
DEREGULATION
BIDDING
LICENCE
MOBILE TELECOMMUNICATION SYSTEMS
FOREIGN INVESTMENTS
INFRASTRUCTURE PRIVATIZATION AFFILIATED ORGANIZATIONS
BENCHMARK
BID
BIDDERS
CONSUMERS
DUOPOLY
EXCLUSIVE RIGHTS
FORECASTS
FOREIGN INVESTORS
GDP
GDP PER CAPITA
INCOME
INNOVATIONS
LEASED LINES
LICENSING
MARGINAL COST
NETWORKS
PRESENT VALUE
PROGRAMS
PURCHASING POWER
REGULATORY FRAMEWORK
TELECOMMUNICATIONS REFORM
TELECOMMUNICATIONS SERVICES
TENDERING
TEXT
TRANSPARENCY
Online Access:http://documents.worldbank.org/curated/en/1999/11/438312/introducing-telecommunications-competition-through-wireless-license-lessons-morocco
http://hdl.handle.net/10986/11449
Description
Summary:In August 1999 the Moroccan government awarded a second mobile telecommunications license through international tender. All bidders made commitments on quality, coverage, and tariffs that would significantly expand and improve telecommunications services. The winning bidder, Medi Telecom, paid about US$1.1 billion for the fifteen-year license to operate under relatively unfettered competition-one of the highest prices ever paid for a mobile license relative to population size. Just as impressive is that the price was offered in a country usually off the radar screen of foreign investors. This Note examines why Morocco was able to reap these big rewards.

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