Feeds

France Telecom warns of sales slowdown

Hit by VoIP and increased competition

Security for virtualized datacentres

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 ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.