REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

More documents

Recommendations

Info

6. OVERVIEW OF THE GROUP’S BUSINESS 6.1 PRINCIPAL ACTIVITIES hardware specifically suited to the Group’s service offerings and using cutting-edge technologies such as the Freebox modem/DSLAM unit, and in the development of innovative software solutions (such as billing software, Cisco SS7 interconnect software, etc.). By relying largely on its internal resources in this way, the Group has been able to optimize its capital expenditures from the outset. Understanding of key regulatory issues The Group has demonstrated its understanding of regulatory issues by establishing a constructive dialogue with the French Telecommunications Regulatory Authority (ARCEP), particularly in the context of the local loop and interconnect working groups set up by ARCEP. The Group has also shown its ability to take full advantage of the appeal procedures offered by ARCEP in order to defend its interests. Iliad believes that it has a good overall understanding of the current legislative and regulatory environment, as well as of the proposals under discussion which could have an impact on its activities as an Internet service provider and telecommunications operator. A proven ability to generate profits in periods of high revenue growth The Group has posted profits each year since 2001, despite its significant investments in interconnection and LLU operations and the intense competition in its markets. It has demonstrated its capacity to finance the majority of its capital expenditures and new business start-up costs internally, while continuing to pay dividends. With its high-performance network and large customer base, the Group believes it will be able to continue to pursue its strategy of profitable growth. The ability to build on its experience As the different parts of the Group’s network complement and are integrated with one another, Iliad is able to put its experience in certain areas of its business to work in the development of other services. By way of example, the Group’s expertise in fixed telephony acquired in the course of restructuring and running One.Tel enabled Free to launch the first available fixed telephony over ADSL services for the consumer market beginning in August 2003, without changing the prices of its broadband Internet access offering. An experienced management team with complementary skills Over the last few years, the management team has succeeded in positioning the Group as the leading alternative Internet service provider in France, while sustaining profitability and pursuing a strategy of internally financed growth. This success is due largely to the experience and highly complementary skills of the management team in the following areas: knowledge of the Internet and telecommunications sector, understanding of key regulatory issues, consumer marketing know-how, strong technological expertise, sound financial management and commitment to a graduated investment policy. 6.1.3 A network servicing the Group’s Internet and telephony operations In order to access the Internet, data must be routed between the user’s computer and the Internet. Such Internet access is traditionally provided by Internet service providers using interconnect services, i.e. by connecting to the incumbent operator’s network or to that of other licensed operators. After Free was established, the Group believed it was critical to have control over as many network elements used for connecting its subscribers to the Internet as possible. This decision meant that Free could operate its own network infrastructure, which quickly resulted in an influx of recurrent revenues from its “Pay-as-you-go” services and ensured the Company’s profitability (largely as a result of reducing its spend on interconnection charges). The Group began its network roll-out strategy in December 1999 when it obtained licenses awarded under Articles L.33-1 and L.34-1 of the French Post and Telecommunications Code (which in July 2004 was renamed the Post and Electronic Communications Code), authorizing Free Télécom (known at that time as Linx) to build and operate a telecommunications network and to provide telecommunications services to the public. Free’s strategy was based on accessing and operating optical fibers already installed by other operators, particularly by concluding long-term Indefeasible Right of Use (IRU) agreements for dark optical fibers. This enabled Free to optimize its capital expenditures and guarantee a rapid interconnection with the incumbent operator’s network. 22 - Iliad – Registration Document 2007
The Group’s network has been developed in several phases: 6. OVERVIEW OF THE GROUP’S BUSINESS 6.1 PRINCIPAL ACTIVITIES • August 2000 – April 2001: interconnection with the digital main switching units and all digital local exchanges in the Paris urban area for the collection of data traffic; • April 2001 – August 2002: interconnection at a number of digital local exchanges outside Paris and upgrading for routing of voice traffic; • Since September 2002: unbundling of the local loop and expansion of the national network; • Since September 2006: roll-out of an FTTH network. These development phases demonstrate the Group’s constant efforts to achieve an appropriate balance between network density and return on investment. Type of France Télécom site Connection points between the Group’s network and the France Télécom network at December 31, 2007 11 Number of connection points Total number of France Télécom sites Digital main switching units ................................................... 18 18 Digital local exchanges ........................................................ 420 450 12 France Télécom LLU sites ..................................................... 1,504 12,309 6.1.3.1 General principles of interconnection and local loop unbundling in France Interconnection and local loop unbundling allow operators to access and use part of the incumbent operator’s network in return for payment to the incumbent operator of access and usage charges. Interconnection to the incumbent operator’s network allows the alternative operator to deliver its customers telephony traffic, while local loop unbundling offers it complete control over the line connecting the customer to the main distribution frame. 6.1.3.1.1 Interconnection Interconnection means the linking together of several telecommunications networks in order to allow uninterrupted routing of communications between them. 11 Figures concern France Telecom’s network in mainland France. 12 Net of customer churn according to France Télécom at December 31, 2007. Iliad – Registration Document 2007 - 23
Page 1 and 2: Société anonyme. Share capital:
Page 3 and 4: TABLE OF CONTENTS GENERAL COMMENTS
Page 5 and 6: 16.2 SERVICE CONTRACTS ENTERED INTO
Page 7 and 8: 1. PERSONS RESPONSIBLE 1.1 PERSON R
Page 9 and 10: 3. SELECTED FINANCIAL INFORMATION 3
Page 11 and 12: 4. RISK FACTORS 4.1 RISKS RELATING
Page 13 and 14: 4. RISK FACTORS 4.3 FINANCIAL RISKS
Page 15 and 16: 4.4 LEGAL RISKS 4.4.1 Risks relatin
Page 17 and 18: 4. RISK FACTORS 4.4 LEGAL RISKS The
Page 19 and 20: 5. INFORMATION ABOUT THE COMPANY AN
Page 21 and 22: 2007 • Sale of Kertel (February 2
Page 27: Considering acquisition opportuniti
Page 31 and 32: Réseau International CTI (Centre d
Page 33 and 34: 6. OVERVIEW OF THE GROUP’S BUSINE
Page 37 and 38: The following tables give details o
Page 45 and 46: 6.2 PRINCIPAL MARKETS 6.2.1 Interne
Page 57 and 58: Local loop unbundling 6. OVERVIEW O
Page 61 and 62: 6.6.2 Regulation of the content of
Page 67 and 68: 7.2 ORGANIZATION CHART At March 31,
Page 69 and 70: 9.1 KEY CONSOLIDATED FINANCIAL DATA
Page 71 and 72: 9. OPERATING AND FINANCIAL REVIEW 9
Page 79 and 80:
9. OPERATING AND FINANCIAL REVIEW 9
Page 81 and 82:
9.1.2 ADDITIONAL INFORMATION 9.1.2.
Page 83 and 84:
11. RESEARCH AND DEVELOPMENT, PATEN
Page 85 and 86:
13. PROFIT FORECASTS OR ESTIMATES T
Page 87 and 88:
14. ADMINISTRATIVE, MANAGEMENT AND
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
15. COMPENSATION AND BENEFITS 15.2
Page 95 and 96:
16. FUNCTIONING OF THE COMPANY’S
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
17.1 HUMAN RESOURCES 17. EMPLOYEES
Page 109 and 110:
18.1 IDENTIFICATION OF SHAREHOLDERS
Page 111 and 112:
19. RELATED PARTY TRANSACTIONS 19.
Page 113 and 114:
20. FINANCIAL INFORMATION CONCERNIN
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
2.3.4 List of subsidiaries and affi
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
21.1 SHARE CAPITAL 21.1.1 Amount of
Page 197 and 198:
21. ADDITIONAL INFORMATION 21.1 SHA
Page 199 and 200:
Page 201 and 202:
21.1.8 Authorized unissued share ca
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
21.4.2 Changes in the Iliad share p
Page 209 and 210:
Not applicable. 23. THIRD PARTY INF
Page 211 and 212:
25. INFORMATION ON SHAREHOLDINGS 25
Page 213 and 214:
GLOSSARY Broadband ARPU (Average Re
Page 215 and 216:
GLOSSARY IP (Internet Protocol): te
Page 217 and 218:
GLOSSARY Spamming: the bulk mailing
Page 220:
RR Donnelley : 01 53 45 19 00
show all

REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

Create successful ePaper yourself

Delete template?

Save as template?