Fiber expansion center of France Telecom-Orange ‘conquests 2015’ five-year plan
JULY 6, 2010 -- Stéphane Richard, CEO of France Telecom-Orange, unveiled a new group-wide industrial project July 5. The new five-year plan, called "conquests 2015," calls for an investment of 2 billion euros by 2015 to deploy a new fiber-optic network in France.
In announcing conquests 2015, Richard outlined three major challenges France Telecom-Orange faces:
- an “unprecedented” social crisis in France
- a fast-changing ecosystem as technological development continues to accelerate
- a “tense” competitive and regulatory environment.
France Telecom-Orange will respond to these challenges via four strategic directions, which Richard couched in terms of “conquests”:
- the conquest of the employee pride
- the conquest of networks
- the conquest of customers
- the conquest of international development, through which sales are expected to double over the next five years in emerging markets. Such international development “will be based on the same acquisition policy as before and rules out any ‘transformational’ deals,” in the words of a press release.
The new fiber-optic network will be designed to guarantee coverage for 40% of French households through coverage in every region of mainland France by 2012 and in every département by 2015, including the three overseas territories.
The Group also plans to launch LTE as soon “as the regulations are in place.” Orange will also invest in the monetization of mobile data traffic as well as in the deployment of “green” networks such as the Oryx program of solar-powered mobile telephone masts in Africa.
Richard reiterated his objective to generate an organic cash flow of 8 billion euros for 2010 and 2011, excluding the acquisition of spectrum or licences and the litigation concerning corporate tax, and including the benefits and net expenses of the "conquests 2015" project. All other aspects of the group's financial policy remain unchanged, he asserted.