Feeds

France Telecom warns of sales slowdown

Hit by VoIP and increased competition

New hybrid storage solutions

Shares in France Telecom (FT) were on the slide today after the giant telco warned that it was unlikely to generate as much cash this year as it had predicted.

In a statement issued yesterday evening, FT blamed "accelerated technological changes, competitive pressure and the regulatory environment" for its decision to confirm that growth continues to slow.

Which means that, like other traditional telcos, FT is being hit by the growth in broadband telephony services (VoIP), increased competition from rivals and cuts in call termination rates imposed by regulators.

Last year, FT predicted that revenues would grow by around three to five per cent but has now downgraded that figure to between two to three per cent.

Analysts at Morgan Stanley have already crunched the numbers and reckon this lack of growth will cost the telco around €1bn in EBITDA (earnings before interest etc) revenue.

To combat the decline FT has announced it plans to accelerate plans to speed up its massive restructuring exercise announced last summer.

Key to this shake-up are ambitious plans to ditch its Wanadoo ISP brand and plug all its services (telco and interent) under the Orange logo to provide punters with a "whole new world of services in the areas of communication, infotainment and everyday life".

Execs claim that the company's New Experience in Telecom (NExT) initiative would "give customers access to a universe of services that are both high value and simple".

"France Telecom has decided to accelerate its transformation, notably rolling out programs to simplify its brand portfolio as of 2006, setting up an integrated network and customer relations structure in each country," said the telco in a statement.

By lunch shares in FT were down 8.5 per cent (€1.84) at €19.83 on the Paris stock exchange ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.