PROJECT STUDY ON

PRESENTED BY :
ABHISHEK BANSAL
NISHANT PALIWAL
FRANCE
TELECOM
RAKHEE SONKHLA
VANDANA MISHRA
KUMAR MANISH
INTRODUCTION
 France Telecom is the leading
broadband Internet service provider
and the number three mobile
operator in Europe and is a
worldwide leader in
telecommunication services for
multinational corporations.

 Orange is a subsidiary of France Telecom

and provider of mobile communications
services.

 Services in 23 countries worldwide, including

13 countries in Europe.
INTRODUCTION
• Serves more than 177
million customers in five
continents
• Provides mobile services
and ISP under brand name
ORANGE
• Consolidated sales of 52.9
billion Euros in 2007
• Current CEO is Didier
Lombard.
 HISTORY
• France télécom was Known as
Direction Générale des
Télécommunications upto 1988.
• Became autonomous in 1990.
• Head quarters being in PARIS.
• Brand ORANGE was created in 1994
for Hutchison Telecom's UK mobile
phone network, which was acquired
by France Telecom in August 2000.
 Services

The four key platforms France

Télécom operates are:
 Fixed line telephone, mainly in France and
Poland.
 Broadband access.
 Mobile phone telephony.
 IPTV, though currently only in France and
Spain, with MaLigne TV, now known as
Orange TV.
 NExT (New Experience in
Telecommunications)

  In 2005, France Telecom launched NExT, the Group’s

transformation plan to become the leading operator for new
telecommunications services
 . It is a 3-year plan for transformation that will enable the Group’s
customers to access a universe of enriched and simplified services and
the Group to pursue its transformation as integrated operator.
It is designed to make France Telecom the benchmark operator for
new telecommunications services in Europe in terms of innovation,
service quality and economic performance
 Definition of customer
o Mobile service customers
o A mobile service customer is anyone holding a SIM card or
anyone holding a prepaid card who has placed at least one call
and has not passed the date after which it is contractually
impossible to receive calls.
o Fixed-line telephony service
customers
o This number is the aggregate of standard analog lines and ISDN access
lines in service (including fully unbundled lines), with each ISDN
channel being treated as one line. ISDN: Integrated services digital
network.

o Internet access customers

o Internet access customers are those who have entered a monthly
payment subscription contract as well as the active customers of free
access accounts, i.e. access customers showing activity in the last
month, identified by measurable consumption.
 The Orange france
offers
Orange France offers four major types
of products targeted at different
categories of users:
 Offers with subscription.
Offers without commitment.
The new multimedia Orange World offer.
For businesses, the Orange Business
Solutions offers.
 Business segments
 In order to reflect the change in the Group and the
structure of its businesses, France Telecom has selected
the following three business segments:
 Personal Communication Services
 (PCS) segment consists of the mobile telecommunication services in
France, the United Kingdom, Spain, Poland and Rest of the World. It
includes all the Orange subsidiaries, and the mobile operations of
France Telecom España in Spain and TP Group in Poland (with its
subsidiary PTK Centertel), and the other Group companies abroad;
 Home Communication Services
 (HCS) segment includes the fixed-line telecommunication activities
(fixed-line telephony, Internet services, operator services) in France,
Poland and the Rest of the World, as well as the distribution and
support functions provided to the other segments of the France
Telecom group;
 Enterprise Communication Service
 (ECS) segment holds the communication solutions and services
dedicated to businesses in France and worldwide.
 Orange Business Services

 Orange Business Solutions” is a fully integrated entity that

can meet the mobile and fixed-line communication needs of
medium and large companies and government agencies.
 The “Orange Business Services” offer
currently has three main plans:
 “Solo”
 Intended for independent workers
 “Venture”
 Intended for very small companies of up to 10 employees
 “Momentum”.
 Designed for larger-size companies that must be able to operate in a
flexible manner and that need a plan that allows their employees to
continue to work when they need to
 Orange world
 The Orange World portal offers a multitude
of rich and diversified content.
 Access to more than 60 live television channels
 700,000 music titles,
 3,000 videos
 over 200 games,
 Orange League 1, and the Top 14 in video.
 Introduction of the 3G+ in November 2006 and the HSUPA
technology in September 2007 allowed an offer of high definition
TV for unlimited viewing on mobile handsets.
 Film, music and ringtone downloads from Warner Music, EMI,
Sony/BMG, Universal Music, and Ministry of Sound
As of December 31, 2007, Orange World had approximately 4.1 million active customers
(compared with 3.1 million at December 31, 2006)
Table of all Group customers (as of
December 31, in thousands, for controlled
companies
Mobile 2006
  2007
 

France 24,226 23,268

Europe (excluding France) 59,596 57,157
World (excluding Europe) 25,840 17,208
Total 109,662 97,633
Fixed (Source: Informa Telecoms & Media ).
   

France 34,174 33,873

Europe (excluding France) 11,998 13,504
World (excluding Europe) 1,214 1,304
Total 47,386 48,681
   
Internet
France 7,917 6,884
Europe (excluding France) 5,033 5,298
World (excluding Europe) 152 100
Total 13,102 12,282
   
Total
France 66,318 64,025
Europe (excluding France) 76,625 75,959
World (excluding Europe) 27,206 18,612
 Gsm
and 3G
covera
ge of
France
teleco
m
 United kingdom players

Source: Enders Analysis, Broadband market in the

United Kingdom, 3 rd quarter of 2007.
 SIPOC

Source: Enders Analysis, Broadband market in the

United Kingdom, 3 rd quarter of 2007.
Telecom value chain
 STRATEGY
 France Telecom’s strategy is designed to respond to the changing
telecommunications service sector which is being profoundly
transformed, resulting in significant changes in the offer, usages and
the competitive framework.
France Telecom believes that the main drivers of this
transformation are:
 Evolving technologies: general use of the IP protocol, broadband,
mobility; development of multi-access handsets and network
interoperability;

 Evolving customers habit: growth in the consumption of

audiovisual content, abundance, the customization of utilization
contexts and services;

 Changing industry structures and strategies, and more intense

competitive pressures.
 The Group’ s strategic
priorities
 Innovation is the Group’s top priority
 France Telecom has structured this activity in a way that has no equivalent in terms
of its competitors, by creating a network of Orange R&D centres called the

“Orange Labs ”, located right next to the places where the new trends are
being designed (San Francisco, China) or right next to local needs (United Kingdom,
Warsaw, Cairo, Jordan, Egypt).
 Broadband is at the heart of the innovation strategy.

 The second priority is service quality

 Having the lowest claim rate, the highest broadband quality in
Spain.
 The third priority
 is to continue developing a strong and recognized brand and to
have it bear fruit across the various markets.
 The fourth priority
 is to continue improving our operational performance in order to
continue reducing costs
 The fifth major priority
 Sales, distribution and
customer service
 In metropolitan France, Orange France sells its
products and services through a full range of retail
circuits:
 The France Telecom retail network, which had
684 points of sale as of December 31, 2007
 Supermarkets and superstores.
 About 1,000 independent distributors.
 Own network of points of sale: 175 “Mobistore”
stores.
 Offers for Businesses are sold by specialized
networks:
Five Major Account Agencies.
 2007 2006 2005
Market 117.8 116 110.6
penetration rate
in the United
Kingdom(%)
Total number of 71.7 70.3 65.1
users in the
United
Kingdom(mn)
Orange UK 15.6 15.3 14.9
active
customer(mn)
Contracts 5.6 5.0 5.0
(millions)
Prepaid 10.0 10.4 9.9
customers
(millions)
Market share of 21.5 21.8 22.1
Orange UK
(%)
Coverage of the 99.2 99.4 99.4
Orange UK
network
Source: Informa Telecoms & Media (3 rd quarter for 2007).
Source: Orange UK.
SWOT ANALYSIS(by :datamonitor)
 Strengths
 Wide customer base
 Orange has a wide customer reach in most of its markets. The company's
subsidiary in France,
Orange France, is the market leader with approximately 22.6 million
registered customers in 2005.Orange UK has approximately 14.9 million
customers.

 Strong brand image

 The most significant strength of Orange is its brand equity. The company has been
making efforts to build Orange as the company's leading global brand. The Orange
brand, present in France since June 2001, benefited from a spontaneous recognition
rate of 87% in the fourth quarter of 2005.

 Strong presence in European markets

– Communications services in 23 countries worldwide, including 13 countries in
Europe.The company
has controlling interests in Egypt (MobiNil) and minority interests in Portugal (Optimus),
Austria
(One), Senegal (Sonatel Mobiles), Mali (Ikatel), Equatorial Guinea (Getesa) and the
 Weaknesses
 Weakening mobile business in the UK
and France
– France Telecom's mobile telephony business in
the UK and France has lost ground to competitors
owing to ineffective strategies

 Weak presence in Asian markets

 Asian countries represent a high growth market
for the telecommunication industry. The
company's weak presence in the high growing
Asian market might limit its future operations and
 Opportunities
 3G technology
– The global demand for 3G technology is on a rise.The
number of users for high-speed data protocol 3G are
estimated to rise from 600,000 at the end of 2003 to 240
million by 2009.
 Growth in European residential internet market
– The residential internet market in Europe is
expected to grow rapidly in the coming years.The
broadband internet will reach more than 50% of
households in Europe by 2007.
 FreeMove Alliance
 The company will especially be able to attract
 Threats
Saturation in the European mobile
market
 European mobile markets have become saturated as a result of
high penetration rates. In 2005, the market penetration in the UK,
Spain, Netherlands, and Switzerland was 110.6%, 105.3%, 102%,
95.5% respectively. This means that most of the population in
Europe now owns a mobile phone and there is little room for any
future growth.

EU regulation on international roaming

 In 2006, the European Commission announced the
enactment of a new legislation by way of a
regulation under Article 95 of the EU Treaty
 REGULATION

The national regulatory authorities

(NRA)
 The electronic communications sector is primarily
governed by the Postal and Electronic
Communications Code (CPCE)
 Autorité de Régulation des Communications
Electroniques et des Postes (Arcep)
 Agence nationale des fréquences (ANFR)
 Autorité de Régulation des Mesures Techniques
(ARMT)

 STATISTICS(2007)
Group's stake in the capital: 100%

Personal communication
services

 Market penetration rate-- 88%

 Orange network coverage -- 99%
 Market share excluding MVNOs – 43.8%
 Number of customers (000s)---24226
 Number of broadband customers (000s)-7407
Home communication
services
Number of fixed line customers (000s)
—22962
Number of Internet customers (000s)—
7917
Number of ADSL customers (000s)—
7296
Voice market share—71.9%
ADSL market share—49.4%
FINANCIAL DATA
 RECOMMENDATIONS
 FRANCE TELECOM TO GAIN ITS LOST GROUND FROM
THE COMPETITORS IT SHOULD FOCUS MORE ON
STRENGTHENING ITS POSITION BY USING EFFECTIVE
STRATEGIES..

 FT SHOULD ALSO MAKE ITS PRESENCE IN ASIAN

MARKETS AS THEY ARE HIGH GROWTH MARKETS e,g.
INDIA AND CHINA

 FT SHOULD ALSO DIVERSIFY ITSELF IN BROADBAND

INTERNET WITH NEW TECHNOLOGIES LIKE WIMAX IN
EUROPE …
 AS EUROPE MARKET IS ON THE VERGE OF SATURATION
AS PER THE LIFECYCLE STRATEGY FT SHOULD FOCUS
ON LOWERING ITS COST AND REAP REVENUES…
 BIBLIOGRAPHY

• www.orangebusiness.com/mnc
• www.wikipedia.com
• www.francetelecom.com
• www.orange.com
• http://www.empirica.com/
• http:// BUSINESS INSIGHTS.COM
• UNITED STATES SECURITIES
AND EXCHANGE COMMISSION FORM 20-F
• Enders Analysis, Broadband market in the United Kingdom
• http://www.arcep.fr/index.php?id=1&L=1
MERCI