France Telecom Group

In the highly competitive European broadband market, the France Telecom Group aims to differentiate itself from its rivals by offering customers access to a new universe of integrated, wireless broadband services. The company’s “New Experience of Telecoms” (NExT) strategy integrates its mobile, fixed-line, broadband, multi-play and business offerings under the popular Orange brand.

The strategy is working. As of June, 2006, France Telecom claimed the number one position in the European ADSL access market, with 8.5 million customers throughout France, the United Kingdom, Poland, Spain and the Netherlands, and annual growth exceeding 50 percent. Worldwide, the company ranks second, with 147 million ADSL customers on five continents (220 countries).* France Telecom is also making inroads into new markets, winning more than 3 million voice-over-IP (VoIP) customers in Europe, and is in the process of growing its digital television (IPTV) subscribers from the 306,000 it currently claims.

Tying these services together is the company’s Livebox product, which is being marketed as the point of convergence for equipment and technologies in the home. Orange customers first select the Internet package that best suits their needs. Then, by purchasing a Livebox, they can select and connect an à la carte package of multimedia services, including digital television, VoIP and videophone services. As of June 2006, France Telecom had sold 2.9 million Livebox units throughout Europe.

In 2005, France Telecom launched Livecom, a PC-based communications software solution that integrates its videophone, VoIP and instant messaging services. More recently, the company introduced Liveservices: a range of wireless solutions such as Livezoom, which makes it possible to monitor the home remotely via a wireless camera connected to the Livebox; and Livemusic, which allows subscribers to listen to radio stations or MP3 files from a computer linked to their stereo. New Liveservices are being planned over the coming months to add to these offerings.

*Customer numbers as of March 31st, 2006