registration document France Telecom 2009 - Orange.com

overview of the group’s business
6
OVERVIEW OF BUSINESS
France
Z FIXED-LINE TELEPHONY MARKET Sept. 2009 2008 2007
Revenues (in millions of euros) 7,505 10,593 11,002
o/w PSTN (public switched telephone network) access 3,848 5,400 5,560
o/w PSTN calls 2,374 3,730 4,199
o/w VolP access 620 628 534
o/w VolP calls 512 599 418
o/w other (Phone cards and public phones) 151 236 291
Number of lines (in millions) 41.0 40.7 39.6
o/w PSTN access 24.8 26.3 28.7
VolP access 16.2 14.4 10.9
o/w VolP-only 9.7 8.0 5.8
Traffic 79,335 107,075 103,819
PSTN traffi c (in millions of minutes) 40,409 60,028 70,573
VolP traffi c (in millions of minutes) 38,926 47,047 33,246
Source: Arcep, February 2010
The number of fi xed-line telephony lines was up 0.6% between
end 2008 and end September 2009. The market was still
growing in France, due mainly to the steadily increasing number
of voice over IP accesses (+12.8% for the fi rst nine months
of 2009 and +31.6% for the entirety of 2008). Conversely,
the proportion of lines hosting only one traditional telephony
subscription (public switched telephone network (PSTN))
continued its decline, hovering at 71.9 % of all lines at end
September 2009, compared with 76.6 % at end 2008 and
83.2 % at end 2007.
In terms of traffi c, growth in VolP access limited the decline
in annual total volume at end September 2009 to -0.1%. The
weight of annual VolP traffi c on total traffi c from fi xed lines was,
at end September 2009, 49 .1 % of the total, up 7.6 points from
end September 2008.
In terms of revenues, fi xed-line telephony in 2009 stayed
negative, because of the transfer toward broadband Internet
services and the decreased revenue from subscriptions and
calls made on the switched telephone network. Indeed, IP calls,
included in a broadband Internet access plan, were included
in Internet revenues, and only calls exceeding the plan amount
were included in fi xed-line telephony revenues.
6
Internet on the fixed Network Market
Sept. 2009 2008 2007
Revenues (in millions of euros) 4,384 5,401 4,620
o/w narrowband 56 119 197
o/w broadband 3,982 4,816 4,012
o/w other Internet services1 346 466 411
Number of Subscriptions (in millions) 19.9 18.8 17.2
Narrowband 0.7 1.0 1.5
Broadband 19.1 17.8 15.8
o/w ADSL 18.0 16.8 15.0
o/w Cable and others (Sat and WiMax) 0.9 0.9 n/a
o/w FTTH 0.3 0.2 n/a
Broadband ARPU2 (in euros per month – year-on-year) 23.6 23.9 23.5
Number of IPTV Subscriptions (in millions) 8 .1 6.2 4.5
% IPTV in ADSL access 45 .1% 36.9% 30.3%
Source: Arcep, February 2010
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
35