registration document France Telecom 2009 - Orange.com

overview of the Group’s Business
6
OVERVIEW OF BUSINESS
Spain
Core and Transport Networks
Orange España is switching its transport and core networks to a unique and convergent model based on IP architecture, Mobile IP
protocols, WDM and PSTN renewal, in order to anticipate customers’ needs and the future of data fl ows while ensuring a high level
of security and quality of service.
Key Events
February
February
March
June
June
June
September
October
November
November
Launch of the loyalty program Puntos Orange for mobile and ADSL customers. Orange customers are
rewarded, based on consumption and seniority, with a new mobile phone along with new customized offers.
The European Commission’s Intelligent Energy Europe Program awards Orange with the Best Awareness
Campaign for its program aiming at responsible energy consumption.
Launch of the first Orange branded mobile Orange Vegas . Fusion and prepaid customers can enjoy
this innovative mobile phone (2.4” touchscreen, GSM/GPRS, Bluetooth, 1.3 MP camera, only 80 grams, etc.)
for a very competitive price .
Orange broadcasts the first live 3D sport event in Spain. Thanks to the cooperation with France Télévision and
the French Tennis Federation, Orange broadcasted the Roland Garros 2009 fi nal for more than 800 people in Madrid
and Valencia cinemas.
France Telecom receives a 300 million euro credit from European Investments Bank to fi nance investments
in Spain from 2008 to 2010. Including the extension and modernization of both 3G and ADSL network, and their
integration according to the Orange España 2012 strategy presented by France Telecom.
Orange replaced Al-pi brand by Orange Business Services in Catalonia in order to fi nalize the integration
process of Al-pi. This brand brings together all the corporate activities of Orange Group in Catalonia, for both fi xed
and mobile communications.
Orange reduces its bundled ADSL offer prices. Taking advantage of the reduction of bundled ADSL prices
approved by the CMT , Orange offers its ADSL 6Mb+national calls pack, with line rental included (for customers
that are not located in the Orange network area) for only €39.95/month (i.e. €10 savings every month).
Opening of Orange branded shops in El Corte Ingles department stores. The fi rst 11 shops were opened
in September and October in Madrid, Barcelona, Seville, Murcia and Saragossa sites. This initiative is part of
the program to open 300 Orange shops in Spain in the next two years with an estimated 80-100 million euros
investment cost.
Orange launches its new Livebox in Spain. The new device includes WiFi-n technology able to deliver
a theoretical speed of 130 Mbits per second, offering enhanced signal range and 50% quicker connections
than the conventional WiFi connection. It also enables better coverage, making it easier to use multimedia
freely around the home.
Orange runs a commercial offensive on the prepaid market. New fl at rate offer for only €6/week, €0/minute for
all national calls Mondays to Fridays 6pm-8am (24/24 during weekends). Also new on the Spanish market: Orange’s
prepaid customers will be able to choose among the totality of handsets offered by Orange and not only among
prepaid models. Finally, the Puntos Orange loyalty program is also offered to prepaid customers, giving them access
to a wide range of high-end handsets, customized offers, etc.
6
Outlook
Main priorities to strengthen commercial performance concern:
The Spanish market is faced with challenges associated to
market intensifi cation, traditional business maturity and a worse
economic downturn than other European Union countries.
Nevertheless, there are still signifi cant growth opportunities
mainly in broadband (fi xed and mobile) and new services. In this
context, Orange holds a privileged position to emerge as the
main alternative operator for the provision of telecom services
in Spain.
To reach this goal, Orange España will further implement
its transformation program, focusing over the next years on
strengthening commercial leadership, improving customer
satisfaction and its operational effi ciency.
■ innovation in tariffs and products, maintaining the leadership
in fl at rates and voice & data bundles;
■ further development of the distribution networks;
■ evaluation of next generation services;
■ use France Telecom resources to accelerate time-to-market.
Main priorities to improve customer satisfaction concern:
■ operational excellence based on light support functions;
■ differentiation between the customer contact and customer
support functions;
■ the development of loyalty programs;
■ launching of innovative offers.
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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