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 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.