Feeds

Orange France falters on lower handset sales

Multimedia not yet hitting the spot

  • alert
  • submit to reddit
ComputerWire: IT Industry Intelligence

Orange SA is struggling to meet its target of 15% of revenue growth this year and has blamed the low level of new customer growth in maturing markets and handset sales.

The mobile arm of France Telecom SA said that while revenue from its network is on target, handset sales are below expectations. Though handsets with color screens and cameras are on the market, chief executive Jean-Francois Pontal said that sales are not expected to surge until there is a wider choice of models.

While multimedia messaging services (MMS) are expected to herald a new period of growth, the industry has yet to conclude roaming agreements for the new services. This means that an obvious application of the new technology, sending holiday pictures to friends at home, is not possible from another country.

Orange said it is still on target to increase earnings at the EBITDA level by 43% to 4.7bn euros ($4.6bn) and expects its peak funding requirement to be no more than 8bn euros ($7.8bn), 2bn euros ($1.9bn) below its original target.

© Computerwire.com. All rights reserved.

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.