REGISTRATION DOCUMENT AND FINANCIAL REPORT - Iliad

6. OVERVIEW OF THE GROUP’S BUSINESS
6.1 PRINCIPAL ACTIVITIES
These programs are transmitted in MPEG-2 and MPEG-4 formats at a speed of approximately 3.5 Mbit/s. The
use of Multicast technology prevents an overload of the network, as the capacity used is the same regardless of
how many subscribers are watching the same channel simultaneously.
Pursuant to the terms and conditions of the non-exclusive distribution agreements between the Group and the
audiovisual content providers, Free takes responsibility, without charge, for encrypting and transmitting the
majority of the audiovisual channels and packages. The Group invoices subscribers directly for pay channels and
packages and remits the bulk of the invoiced fees to the content providers (with the exception of channels in the
Canal+ group).
During 2006, the Group continued to expand its range of audiovisual services, introducing new features including
DTT channels in the basic TV package, Dolby sound, radio stations, Freeplayer (a mediacenter integrated within
the Freebox), a multi-device service, Video on Demand in partnership with Canalplay, TF1 and M6 Group
channels including TF1 and M6, a digital video recorder incorporated into the HD Freebox, and new VoD
platforms (Canalplay Kids, i-Concerts and Adult content).
In 2007, the Group launched “TV Perso”, which enables Free subscribers with an HD Freebox to create their
own television channel and broadcast it to all other Free subscribers or a select subscriber audience.
FTTH high speed broadband services
In line with its FTTH investment program unveiled in September 2006, Free is rolling out an optical fiber
network providing a direct connection to the homes of subscribers. In selected areas chosen by Free, subscribers
pay €29.99 per month to benefit from high speed broadband Internet access (100 Mbit/s download and 50 Mbit/s
upload) coupled with telephony services which include free calls to 70 different countries and the possibility of
simultaneously accessing a selection of television channels on two televisions. A Freebox Optical is provided to
customers throughout the duration of their subscription to the offer.
6.1.4.1.2 Online
Online was created in 1999 and now manages over 135,000 Internet domains (compared with 90,000 at end-2006
and 85,000 at end-2005). Thanks to this vigorous growth momentum and the expansion of its web hosting
services, Online is now the second largest provider of shared web hosting services in France. Its core customer
base consists of small and medium-sized businesses which wish to benefit from a cost-effective, reliable solution
for hosting their websites.
Following its merger in December 2003 with its subsidiary BookMyName, a company accredited by the Internet
Corporation for Assigned Names and Numbers (ICANN) for the registration of Internet domain names, Online is
now also a domain name registrar.
In practice, Online’s service offering consists of hosting its customers’ domain name in its Domain Name
Systems (DNS) and providing the associated disk space, as well as managing the hosted space. The customer
pays a rental charge based on the type of hosting service selected and may choose its own website address.
Once the customer has been allocated web space by Online, the customer is responsible for creating its website
content using the website construction and management software provided by Online. The customer is therefore
completely free to choose its website content, provided such content complies with all current national and
international laws and regulations, particularly those concerning intellectual property and copyright, and does not
contain any material which may be considered derogatory, defamatory, offensive or subversive of public order or
which could result in an invasion of privacy.
As part of its hosting services, Online also provides its customers with email addresses, email aliases and email
forwarding services, the number of which varies according to the subscription package chosen by the customer.
6.1.4.1.3 Centrapel and Total Call: a technical support and customer service platform used by all Group
companies
Free and One.Tel offer their customers technical support and customer service through a helpdesk platform run
by two Group subsidiaries, Centrapel and Total Call. The Group is currently in the process of expanding and
36 - Iliad – Registration Document 2007