Feeds

Orange joins anti-Voda alliance

Talking the Talk

  • alert
  • submit to reddit

High performance access to file storage

Today is Strategy Day for Orange, with the France Telecom-owned mobile operator telling the world its plans to make money.

Some of the ideas have been trailed already in last Sunday's papers - we already knew that Orange was joining T-Mobile, Telefonica Moviles and TIM in an alliance. This will deliver an "enhanced customer experience through seamless voice, data and mobile internet services across multiple markets". In other words, Europe's mobile network operators are ganging up against Vodafone, the only firm that is capable of supplying a seamless service across Western Europe (bar France) on its own.

Orange has some work to get seamless internally. The company today said it will implement a common technology platform across the group, adding "intelligence to the network infrastructure to deliver new services and applications quickly and consistently to its customers". And of course there are cost savings to be made. We are surprised the company hasn't done this already.

Customers. Who needs 'em?

But what is this intelligence for? Apparently it will enable Orange to offer more personalised services for which it can charge more money. The company is making great play of a new customer segmentations strategy which will see the company attempt to deliver services according to lifestyles and interests, as opposed to the traditional carve-up by age, sex, income demography.

Orange of course has a new CEO, Sol Trujillo, and he has a lot to say about this:

"We plan to talk much more to the customer, find out what their communication needs are, what applications they want, how they want to be served and how they want to communicate with us. For example, some will want single point access, from fixed line, Internet and mobile communication services, others may simply require mobile applications. To achieve the ability to get much closer to the customer, and collect data about the customer, we intend to create new IT systems and optimise its existing systems to enable it to use this data in a meaningful and rapid way. We believe that this focus on the needs of the individual will prove beneficial both for the customer and the business, engendering customer loyalty, building trust and, in turn, driving revenues."

Simple, huh?

Show Me the Money

Trujillo is setting is stamp on the company by centralising many functions under a new management A-Team. The company is to concentrate its focus on the Eurozone countries (including the new Eastern European entrants to the EC). This suggests a reining in of global ambitions - Orange is, for example, an active player in sub-Saharan Africa.

But considering the indebtedness of France Telecom, this is hardly surprising. Last year Orange saw its capex slashed by its parent company. This year it expects to see it rise by $2.3bn. But the emphasis is very much on driving investment from operational income rather than borrowing.

Orange aims to be EBITDA positive in 2003 and to move into operating free cash flow positive status in 2004. It says it is on track to grow revenues 5 per cent in 2003, and it forecasts accelerating growth in 2004 and 2005. The company says it will have cumulative operating free cash flows of approximately 14bn Euros from 2003 to 2005.

By 2005, Orange wants to "have a footprint where we are number 1 or number 2 in each country or have a value share in excess of 20%". This suggests to us that it will withdraw from countries which fail to make the grade. ®

High performance access to file storage

More from The Register

next story
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.