registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the Group’s Business
OF BUSINESS
Romania
Regulation of Fixed-Line Telephony and Broadband Internet
Z KEY EVENTS
March 10
June 16
July 30
July 15
January 29, 2010
Directory services: ANCOM launched two
auctions for the designation of the universal
service provider for directory enquiry
services and directories.
Universal Service: t he Ministry of
Communications and Information Society
published the Strategy.
Broadband strategy: t he Romanian
Government approved a Broadband
Services Strategy for 2009 – 2015.
Fixed termination markets: ANCOM
consultation on three draft decisions for
retail and wholesale markets.
Compliance: t he European Commission
opened an infringement procedure for lack
of independence of the regulator.
Directory Services
In March 2009, ANCOM launched two auctions for directory
enquiry services and directories, within the Universal Service
Obligation framework.
The universal service provider was designated in June 2009
and contracts for the transfer of the database were concluded
between operators.
Universal Service
In April 2009, the Ministry of Communications and Information
Society issued a consultation on universal service strategy,
which came into force in June 2009. Mobile networks may
be used for the provision of voice and data services at a fi xed
location.
Broadband Strategy
In July 2009, the Romanian Government approved the
Broadband Services Strategy for 2009– 2015.
The Ministry of Communications and Information Society
proposed draft projects fi nanced by the Romanian S tate
for broadband connections in white areas. The terms and
conditions of the state aid are still not established.
Infringement Proceeding
In January 2009, the European Commission opened a procedure
against Romania for the regulator’s lack of independence and
therefore for not respecting the Community rules.
The Romanian Ministry of Communications and Information
Society exercises both regulatory (radio frequencies) and
ownership functions (Romtelecom and SNR), when the
Community rules require the separation between the regulation
authorities and the service suppliers.
Orange Romania’s Activities
Z FINANCIAL AND OPERATING INDICATORS 2009 2008 2007
Revenues (in millions of euros) 1,055 1,310 1,234
Number of customers (in millions)
Mobile customers 11.0 10.4 9.8
o/w mobile broadband 2.7 1.7 1.0
Total ARPU (euros per year) 92.0 119.0 130.0
Source: Orange
Orange Romania signifi cantly increased its customer base in
2009 (640,000 new customers), thanks mainly to the prepaid
segment (562,000 new customers). However, Orange Romania
was hit hard in the fi rst quarter by the aggressiveness of rival
offers by Cosmote, with its customer base falling by 237,000
ahead of a recovery made possible by the redefi nition of
its prepaid offers. Postpaid offers, which also suffered from
competition from Cosmote via price cuts and handset subsidies,
were reinvigorated at year end by the launch of the new Animal s
offers. These initiatives enabled Orange Romania to win back
market share in 2009 and regain positive momentum. The
customer base also benefi ted from growth in mobile Internet ,
where customer numbers increased by 58% in 2009.
Usage also changed considerably, with very different trends
depending on the type of offer. Consumer subscribers to
postpaid contracts maintained their level of usage thanks
to a signifi cant year-end increase in volume linked to the
Animal s offers, which include very generous call minutes to
all destinations. By contrast, business customers sought to
rationalize their spending, mainly in response to the economic
crisis, prompting them to rein in their usage. And average
monthly usage in the prepaid segment boomed, fuelled by
abundance offers for on-net communications.
106
2009 REGISTRATION DOCUMENT / FRANCE TELECOM