registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the Group’s Business
OF BUSINESS
Slovakia
Mobile Telephony
Z THE MOBILE TELEPHONY MARKET 2009e 2008 2007
Revenues (in millions of euros) (1) 1,238 1,235 1,143
o/w post-paid (1) (2) 1,088 1,086 1,006
o/w prepaid (1) (2) 149 149 138
Number of customers (in thousands ) (2) 5,659 5,599 5,796
o/w post-paid (2) 3,595 3,292 2,700
o/w prepaid (2) 2,064 2,307 3,097
Sources:
(1) Idate, January 2010
(2) Orange estimates
The mobile telecommunications services market is stagnating
(revenues grew by only 0.2%) after a period of strong growth
(+8% in 2008). In particular, the voice market contracted by
3.2%, while the mobile data market continued to grow (+16.5%)
thanks to the multiplication of data offers linked to sales of
smartphones and mobile data (3G modem) coupled with the
sale of a laptop.
Mobile services revenues in Slovakia are still derived mostly
from subscribers on contracts, prepaid offers accounting for
12% of mobile revenues.
The number of users of mobile telephony in Slovakia was
5.6 million at end 2009, divided into 3.6 million post-paid
(64% of the total, up 2 points compared with 2008) and 2 million
prepaid users.
Abundance and mobile broadband Internet offers rounded out
existing offers, and were a real success. The mobile penetration
rate is still above 100%, despite a drop in the number of active
prepaid users.
Lastly, the number of users of services available on 3G mobile
networks was roughly 1.2 million (S ource: Idate).
The Competitive Environment
Z BROADBAND INTERNET MARKET SHARE
27.2%
3.5%
9.4%
59.9%
2008 2009
Source: Orange estimates
28.0%
5.78%
9.1%
57.1%
Other
Orange
UPC
Slovak Telecom
Z MOBILE MARKET SHARE
5.4%
40.8%
53.8%
5.9%
40.5%
53.5%
8.9%
38.5%
52.6%
2007 (1) 2008 2009
Source: Orange estimate
(1) Note: estimate at March 31, 2008
O2
T-Mobile
Orange
Orange Slovensko currently competes against two other
operators, Telefonica 02 and T-Mobile (Eurotel), wholly owned
by Slovak Telecom, which is itself wholly owned by Deutsche
Telekom.
O2’s entry into the market in 2007 increased competition in
terms of pricing. 2009 saw an intensifi cation of this competition
in a challenging economic environment stemming mostly from
a slowdown in exports. This translated into a decline in average
revenue (ARPU) to approximately 20.70 euros in 2009. It did
not, however, lead to any real change in terms of market share.
Orange Slovensko maintained its number-one position in mobile
telephony in 2009, with 52.6% of market shares according to
internal estimates.
Regulatory Environment
Regulatory Framework and Authorities
■ The regulatory framework in Slovakia is based on the Act
on electronic communications no. 610 of December 2003,
which entered into force in January 2004, and has been
amended several times since then.
■ The Telecommunications Offi ce (TÚSR) is the Regulatory
Authority responsible for the communications market and
rules enforcement.
■ The Antimonopoly Offi ce (PMÚSR) is in charge of the
protection and promotion of competition.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM