A N N U A L R E P O R T - Bouygues

Bouygues Telecom
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UMTS licence
In accordance with the terms of
its licence, in early 2005 Bouygues
Telecom submitted a report as part
of the procedure to verify compliance
with its UMTS network rollout
obligations two years after award of
the licence.
After reviewing technological developments
since 2002 and noting that the
market for broadband mobile services
had got off to a sluggish start everywhere,
Bouygues Telecom set out its
strategic choices for broadband:
• rollout from 2005, covering at least
90% of the population with the Edge
technology, offering comparable
performance to the current version
of UMTS;
• introduction of UMTS in the much
more effective HSDPA version, with
coverage of 20% of the population
by the time the network is opened
in 2007.
In its decision of 20 May 2005,
the regulator amended the timetable
of Bouygues Telecom's
rollout obligations, allowing it
the same 28-month extension as
its competitors. Consequently,
Bouygues Telecom will have until
30 April 2007 to offer UMTS services
providing coverage of 20% of the
population.
Consumer affairs
On 27 September 2005, with Arcep,
the Industry Minister organised a
round table bringing together network
operators, industry associations and
consumer groups to discuss
consumer demands
relating to telephone
and
i n t e r n e t
services.
A number of measures
were introduced
as a result
of the meeting,
intended
to improve the
transparency of
product and service
offerings, contractual
conditions, commercial
practices
and dispute settlement
procedures.
The following decisions were also
taken:
• one-stop 10-day mobile number portability
must be in place by the
beginning of 2007;
• time spent on hold at call centres
must be free of charge;
• cancellation times must be cut to
one month and deposits must be
refunded within ten days;
• contracts must not exceed twelve
months, whatever the type of service.
A number of regulations putting these
decisions into effect are expected.
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Outlook for 2006
Bouygues Telecom aims to expand its
customer base by emphasising innovative
products and the quality and variety
of broadband i-mode services.
Partnerships in specific segments, on
the Universal Mobile model, may expand
the range.
The tied retail network will be strengthened;
stores will gradually be refurbished
to offer customers a better
welcome.
Bouygues Telecom will ensure continuous
improvement in processes at
Customer Relations Centres to maintain
the high level of service quality.
The 24% cut in call termination rates
imposed by the regulator from 1 January
2006 will have a significant impact on
sales growth.
Net sales from network are expected to
rise by 1% to €4,280 million and total
consolidated sales to €4,580 million.
BUSINESS ACTIVITIES
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