France Telecom Company Profile Reference Code: 0654 Publication Date: 01/02/2002 www.datamonitor.com Datamonitor USA Datamonitor Europe Datamonitor Germany Datamonitor Hong Kong 1 Park Avenue Charles House Messe Turm Room 2413-18, 24/F 14th Floor 108-110 Finchley Road Box 23 Shui On Centre New York, NY 10016-5802 London NW3 5JJ 60308 Frankfurt 6-8 Harbour Road USA United Kingdom Deutschland Hong Kong t: +1 212 686 7400 t: +44 20 7675 7000 t: +49 69 9754 4517 t: +852 2520 1177 f: +1 212 686 2626 f: +44 20 7675 7500 f: +49 69 9754 4900 f: +852 2520 1165 e: [email protected] e: [email protected] e: [email protected] e: [email protected] ABOUT DATAMONITOR About Datamonitor Datamonitor is a leading business information company specializing in industry analysis. 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France Telecom Reference Code: 0654 Publication Date: 01/02/2002 Page 2 TABLE OF CONTENTS Table of contents CHAPTER 1 Company Overview 5 CHAPTER 2 Business Description 6 CHAPTER 3 History 7 CHAPTER 4 Key Employees 8 CHAPTER 5 Key Employee Biographies 12 CHAPTER 6 Products and Services 15 CHAPTER 7 Competitors 16 CHAPTER 8 Company View 17 CHAPTER 9 Locations and Subsidiaries 18 9.1 Head Office 18 9.2 Other Locations 18 CHAPTER 10 Latest Company Comment 24 10.1 France Telecom/Orange: still on course 24 10.2 France Telecom: turning Orange in core market 24 10.3 3G mobile: the French ease terms 25 10.4 France Telecom: Orange growth, but it's not all organic 26 10.5 France Telecom: better than some 27 10.6 3G: only the strongest will survive 28 10.7 France Telecom: an Orange squeeze 29 10.8 French 3G: an ugly contest 29 10.9 Totalise: unmetered access doesn't bring in the bucks 30 10.10 Orange: freshly squeezed 31 10.11 Orange: the future's floating 32 10.12 France Telecom: into Africa 33 10.13 Orange: the future's mLocation 34 10.14 Freeserve: Wanadoo the right thing 35 10.15 Orange: is the future still bright without Snook? 35 10.16 Swedish 3G: will beauty contest turn ugly? 36 10.17 Freeserve: what does France Telecom Wanadoo? 37 10.18 Swiss 3G: the usual suspects 38 10.19 MobilCom: waking up to post-auction hangover 39 10.20 BT: Italian failure worsens corporate Blus 40 CHAPTER 11 Latest Company News 42 11.1 The Thai future's Orange too 42 France Telecom Reference Code: 0654 Publication Date: 01/02/2002 Page 3 TABLE OF CONTENTS 11.2 Logica and Orange test their British multimedia messaging service 42 11.3 France Telecom develops underwater phone 42 11.4 One2One ponders European court battle with the British Government 42 11.5 Tough talk or hot air from SFR 43 11.6 No deal is the call from Spanish 3G license holder Xfera 43 11.7 Globtel gobbled up by Orange 43 11.8 Jordan Telecom to go public 43 11.9 France Telecom's debt escalation 43 11.10 France Telecom Acquires 100 Percent Of Spanish Subsidiary Uni2 44 11.11 France Telecom and Deutsche Telekom offer US Sprint share 44 11.12 NTL and Orange create alliance 44 11.13 France Telecom produces 44 11.14 French Telecom seeks to be a consolidator of the mobile business rather than a leader 44 11.15 France Telecom to buy back Vodafone shares 45 11.16 France Telecom tries to balance the books 45 11.17 France Telecom issues operating results for 2000 45 France Telecom Reference Code: 0654 Publication Date: 01/02/2002 Page 4 FRANCE TELECOM: COMPANY OVERVIEW SIC 4812 Radiotelephone Communications SIC 4813 Telephone Communications, Except Radiotelephone SIC 4899 Communications Services, NEC NAICS codes: 48531, 51331, 51333, 51334, 51339, 513321, 513322 CHAPTER 1 COMPANY OVERVIEW Ranked number 39 in the FT Global 500, France Telecom is a global telecommunications group. In fiscal 2000 sales totaled $31.7 billion whilst net income totaled $3.4 billion. The company's primary focus is fixed line communications in France but it is moving into new businesses and markets, particularly mobile and Internet markets and international business services. France Telecom is headquartered in Paris, France. France Telecom Reference Code: 0654 Publication Date: 01/02/2002 Page 5 FRANCE TELECOM: BUSINESS DESCRIPTION SIC 4812 Radiotelephone Communications SIC 4813 Telephone Communications, Except Radiotelephone SIC 4899 Communications Services, NEC NAICS codes: 48531, 51331, 51333, 51334, 51339, 513321, 513322 CHAPTER 2 BUSINESS DESCRIPTION France Telecom and its subsidiaries provide a range of telecommunications services to residential, professional and large business customers. The company focuses on four principal businesses: wireless, consumer Internet, consumer fixed telephony services, and business services. The company acquired mobile provider Orange in May 2000 and has since rebranded all its wireless mobile operations under the Orange brand. Orange SA has an international presence in 20 countries, serving 33 million controlled customers. Orange group companies have been awarded next generation (UMTS) licenses in the UK, the Netherlands, Germany, Italy, Austria, Sweden, Switzerland, Portugal, Belgium and France. France Telecom partially floated Orange SA in 2001. Wanadoo spearheads the consumer Internet division. This is a media and online services enterprise that is an ISP, portal and eCommerce site operator, directory publisher and provider of Internet services for businesses. Wanadoo offers a number of Internet packages including its Integrale plans that provide all in one solutions. Furthermore, the company's Alapage and Marcopoly websites give it a presence in two online commerce sector; books and music, and household goods. Wanadoo also engages in media production through its interests in production companies and thematic channels. France Telecom's consumer fixed telephony offers basic subscription plans providing services such as last call return, itemized billing and web billing. New services introduced in 2000 include call blocking and message services. As well as operating in France, the company also has holdings in fixed line companies throughout Europe, Asia, the Middle East and South America. The business services division offers services from website hosting and network management to complete telecommunications outsourcing. In October 1999 the company launched the European Backbone Network to provide direct, seamless access across the continent. Meanwhile in February 2000, it launched Oleane essentials, an all in one package for small and medium sized businesses offering services such as IP access, e-mail and domain names. France Telecom Reference Code: 0654 Publication Date: 01/02/2002 Page 6 FRANCE TELECOM: HISTORY SIC 4812 Radiotelephone Communications SIC 4813 Telephone Communications, Except Radiotelephone SIC 4899 Communications Services, NEC NAICS codes: 48531, 51331, 51333, 51334, 51339, 513321, 513322 CHAPTER 3 HISTORY The French government created France Telecom in 1988. The company was privatized in 1997, and the following year lost the state monopoly as the telecommunications industry opened up to competition. After this the company began to expand through a number of partnerships and acquisitions. The Global One partnership formed in January 1996 with Sprint (US) and Deutsche Telekom, this created an international communication network and was fully acquired by France Telecom in 2000. Growth continued in July 1999 when France Telecom acquired an equity interest in British cable operator NTL. This was followed in October 1999 by France Telecom's launch of its European Backbone Network. The company expanded into the Internet in 1998 with the development of Wanadoo. In 2000, Wanadoo extended its operations into the UK, buying leading ISP Freeserve. The company also operates in Denmark, Spain, Belgium and the Netherlands amongst others. France Telecom made a major expansion in the mobile market in June 2000 by acquiring UK-based mobile operator Orange. The acquisition completed the company's interests in mobile companies and made it one of the largest mobile providers in Europe. Wanadoo