Telefonica-led consortium to launch Morocco's 2nd GSM license before April 5

The Medi-Telecom consortium, which obtained for $1.1 billion the second GSM license in Morocco, will launch the operation before April 5, the company's general manager announced in Casablanca on Tuesday.

The Spanish Telefonica-led group, which also comprises Telecom Portugal, Moroccan BMCE bank, Afriquia gas distributor, will cover up to 60% of the Moroccan population, estimated at about 30 million.

The company said it will offer "unspecified" incentives and competitive tariffs to attract customers. The company executives said the Medi-Telecom effect is felt since "Morocco-telecom" which had the monopoly over telephone in Morocco has already announced considerable price cuts.

The company, which increased its capital to $500 million, started hiring one hundred persons last year and is projecting 400 more jobs in 2002, while indirect jobs (for subcontractors and distributors) will go up from 800 in 2000 to 1,200 in 2002.

Last August, Morocco granted the consortium a GSM mobile phone license for the equivalent of $1.1 billion for a 15-year renewable period.

Medi Telecom was the first private cellular operator to get a GSM license in Morocco after winning a bid contested by seven foreign groups, including France Telecom and U.S. Motorola.