registration document France Telecom 2009 - Orange.com

overview of the group’s business
6
OVERVIEW OF BUSINESS
United Kingdom
6.3.3 United Kingdom
On April 1, 2010, after opening exclusive negotiations in
September 2009 and in preparation for the T-Mobile UK/
Orange UK equally-owned joint venture merger, France Telecom
and Deutsche Telekom announced their creation of a joint
venture. This new entity with provide its customers with more
extensive network coverage, a broader network of own stores,
better local presence, and improved services. The new entity
will also be better equipped to invest in innovative services and
to develop new technologies. In addition, given its size, the
new player will be more effective in facing the other two major
players on the UK market. For further information on the terms
of this agreement, see Chapter 20, Note 3 Main acquisitions
and disposals and changes in the scope of consolidation and
Section 20.5 Signifi cant change in the fi nancial or commercial
situation.
6.3.3.1 The Telecom Services Market
Z KEY MACROECONOMIC INDICATORS 2009 2008 2007
Population (in millions) (1) 61.6 61.2 60.8
Households (in millions) (1) n/a 26.5 26.6
GDP growth (%) (1) -4.8% +0.6% +2.6%
GDP per capita (PPP, $) (2) 35,165 36,358 35,512
Change in consumption per household (%) (1) -3.2% +1.0% +2.1%
Sources:
(1) Eurostat, 2009
(2) IMF, October 2009.
6
Z TELECOM SERVICES REVENUES
(IN BILLIONS OF POUNDS STERLING)
Z NUMBER OF CUSTOMERS (IN MILLIONS)
+2.6%
- 1.3%
39.9 39.4
+4.8%
76.5 78.5
4.2
4.7
4.4
5.0
39.3 41.2
+6.7%
127
130
10.9
11.1
64 67
17.2 18.4
28 30
20.1
18.8
Data transfer
Fixed Internet
Fixed telephony
2008 2009e 2008 2009e 2008 2009e
Fixed telephony
Fixed Internet
Mobile telephony
Mobile telephony
XX
Penetration (as a % of the population)
Growth rate 2008-2009
2008 2009e
Source: Yankee Group , Dec. 09
Growth rate 2008-2009
Source: Yankee Group , Dec. 09
The UK entered into recession in the last quarter of 2008
which affected the consumers and the industry. Consumers
have limited their expenditure across all areas including
telecommunications, whilst many operators have implemented
cost control practices; they have also enriched the product
offering to support the consumer demand.
In terms of the number of users, the UK mobile market has
become more saturated through 2009 with a penetration rate
which reached 130 % compared to 127 % of the UK population
in 2008 (Source: Yankee Group), while 13% of UK customers
rely solely on their mobile for their telecommunications needs.
2009 has seen a signifi cant rise in SIM only subscriptions as
well as rapid growth in sales of mobile broadband subscriptions
accessible by using a USB dongle device (sold as a standalone
product or with a laptop computer depending on price and
length of contract).
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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