registration document France Telecom 2009 - Orange.com

6 OVERVIEW
overview of the group’s business
OF BUSINESS
United Kingdom
Mobile Telephony Activities
Z KEY INDICATORS 2009 2008 2007
Revenues (in millions of pounds) 4,391 4,521 4,254
Total customers (in millions) 16.5 16.0 15.6
o/w postpaid 6.9 6.2 5.6
o/w prepaid 9.6 9.8 10.0
o/w 3G broadband 4.7 3.3 1.8
o/w broadband only (3G dongles) 0.3 0.1 0.0
MVNOs customers (in millions) 0.5 0.4 0.0
Total ARPU (pounds per month) 21.4 22.7 22.1
Postpaid ARPU 40.0 45.1 46.9
Prepaid ARPU 8.8 9.4 9.2
Voice ARPU 15.7 17.1 17.3
Data ARPU 5.7 5.5 4.8
Total AUPU (minutes per month) 179 179 160
Churn (%) 28.5% 28.2% 28.2%
Source: Orange
The decline in Orange UK revenues of 2.9% has been caused
by ARPU dilution due to the competition created by the tariff
bundles of other operators as well as the impact of the decline
in mobile call termination. In 2009, Orange UK saw an 11.3%
growth in its postpaid customers , i.e. 0.7 million more customers
following a 10.7% growth in 2008. Despite the economic
downturn, consumers were still willing to sign contracts with
a 24 month commitment period, attracted by the handsets
offered on such contracts, as well as the more advantageous
rates of subscription offers.
As of 2009, Orange UK focused its efforts on the ‘Magic
Numbers’ and ‘Orange Wednesday’ commercial offers which
had a positive impact on sales. In addition, Orange sold over
200,000 iPhones since its launch in November, offered the very
fi rst £5 per month plan and updated its tariff offers for businesses.
All these actions enabled Orange UK to increase sales but also
to reduce the churn rate. Orange UK increased the customer
loyalty rate by bringing the share of postpaid customers in its
total customer base up by 3 points, now reaching 42%. Thanks
to the 3G capacities of handsets, the Orange UK 3G customer
base represented 28% of total customers at end 2009 (and
68% of postpaid customers), up from 21% in 2008 and 12% in
2007. In 2009, Orange UK launched ‘Phonefund’ for its prepaid
customers which enables them to benefi t from a reduction
which is equivalent to 10% of the amount of their top-up when
buying a new handset. The average revenues of the prepaid
segment were maintained thanks to this offer as well as the
‘Bright Top-Ups’ offer.
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2009 REGISTRATION DOCUMENT / FRANCE TELECOM