France Telecom

September 2009 | 17 pages | ID: F657C2352B3EN
Ovum

Abstracts

France Telecom is Europe’s third-largest operator by revenues. It holds a dominant position in the French market, as well as a number of other assets throughout Europe, the Middle East and Africa. France Telecom has just announced it is in negotiations with T-Mobile to combine the two UK businesses into a joint venture that would make it the dominant mobile operator in the UK. France Telecom has recently restructured at a group level, placing responsibility at a country level. This recognises the fact that it faces a different set of challenges in each of its markets, and therefore needs to develop an individual set of strategic goals for each. While it has seen some areas of poor performance, the changes it is making to transform its business into a more agile, simple and sustainable proposition make it a force to be reckoned with. In this report, Mark Giles and Carrie Pawsey examine France Telecom’s operational strategy and financial performance.

Contents

EXECUTIVE SUMMARY
IN A NUTSHELL
OVUM VIEW
LAYING THE FOUNDATIONS FOR FUTURE GROWTH
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
EXTERNAL CONDITIONS
REGULATORY ENVIRONMENT
COMPETITIVE ENVIRONMENT
FIXED LINE AND INTERNET
MOBILE
STRATEGY
‘NEXT’ COMPLETED
‘ORANGE 2012’
SIMPLICITY
AGILITY
SUSTAINABILITY
MOBILE STRATEGY AT GROUP LEVEL
PERFORMANCE ANALYSIS
REGIONAL STRATEGIC APPROACH
FRANCE
BROADBAND VALUE-ADDED SERVICES STALLING DOMESTIC FIXED REVENUE DECLINE
MOBILE SERVICES WEATHERING THE ECONOMIC STORM SO FAR
UK
GROWTH IN THE UK’S FIXED MARKET IS PROVING MUCH HARDER TO ACHIEVE
MOBILE PERFORMANCE SUFFERS
SPAIN
POLAND
REST-OF-WORLD
COMPANY INFORMATION
STRUCTURE
FINANCIAL HIGHLIGHTS
SEGMENT PERFORMANCE

List Of Tables

LIST OF TABLES

Table 1: Key financials for individual business units

List Of Figures

LIST OF FIGURES

Figure 1: FT 2012 - core strategy
Figure 2: FT’s key financials