registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the Group’s Business
OF BUSINESS
International Carriers & Shared Services
■ November 2009: French launch of Vending Anytime, a
new vending machine supervision and management M2M
solution,
■ November 2009: French launch of a new real-time
communication solution for public transportation
(Information Dynamique Voyageurs),
■ December 2009: Orange Business Services’ communication
announcing its cloud computing strategy.
Outlook
In 2010, Orange Business Services has the following priorities:
■ developing its close, personal relationship with customers
and improving its customer satisfaction rate;
■ supporting customers as they move towards IP services by
developing innovation and convergent services;
■ developing R eal-time Business applications, in particular in
Cloud Computing, to offer new operating models to Business
customers;
■ continuing its efforts towards sustainable development,
by including corporate social responsibility in its
Green IT program.
6.3.7 International Carriers
& Shared Services
The International Carriers and Shared Services segment
incorporates:
■ sales and services to international carriers and the deployment
of the international and long distance network;
■ the installation and maintenance of submarine cables;
■ the shared services which include the Group’s support
and cross-divisional services and the new growth vectors
(content, health, on-line advertising). The majority of the
shared services are re-invoiced to the other operating
segments (brand license fees, Group services, specifi c items
re-invoiced on a case-by-case basis).
Z FINANCIAL INDICATORS
(in millions of euros) 2009 2008 2007
Revenue 1,388 1,349 1,240
International carriers activity 1,208 1,171 1,109
Shared services 180 177 131
EBITDA (1,399) (444) 744
In % of revenues (101)% (33)% 60.2%
CAPEX 500 869 701
In % of revenues 36% (64.4)% 56.5%
6.3.7.1 International Carriers
The Market
The international carriers ’ activity targets the wholesale voice
and data traffi c market (or free-fl oating traffi c). It represents the
portion of traffi c purchased from operators to be transferred
outside France.
The global international voice market was estimated to be 435
billion minutes in 2009 and its growth is being driven by the
economic development of areas with high geographical density
(principally South-East Asia, China and India), developments in
mobile telephony and the development of Voice over IP.
In 2009, the wholesale market accounted for some 45% of the
global international voice market, estimated to be 195 billion
minutes (Source: ITW December 2009).
Competitive Environment
The wholesale operators fall into three categories: wholesalers,
retailers and niche operators.
The wholesalers are specialized in wholesale . As size is a critical
factor, the market is consolidating. The main players include
TATA, Verizon, Telecom Italia, iBasis and BICS.
The retail operators aim is to generate additional revenue from
wholesale traffi c to optimize their group’s retail strategy. France
Telecom, Telefonica, Deutsche Telekom, Telia Sonera, AT&T and
BT fi gure among the main players.
The niche players resell traffi c at regional level, generally through
a single, very competitively priced offer. The main actors include:
Primus, Global Crossing, Colt, Wavecrest and Calltrade.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM