In addition to its cell networks, Orange has chosen to invest in a new Low Power Wide Area1 (LPWA) network, a narrow-band technology which guarantees connectivity at a reduced energy consumption rate and at a lower cost. Orange has chosen to rely on LoRa (Long Range) technology to deploy this network that will cover the whole of metropolitan France.
A part of its Essentials2020 strategy, the Internet of Things (IoT) is a focus area for Orange, which plans to generate 600 million euros in revenue by 2018. After nearly a decade of experience as an operator in machine-to-machine (M2M) communications with its 2G/3G/4G networks, Orange is now broadening its connectivity offer and preparing for the future of the IoT. With this network based on LoRa technology, it is especially useful for connecting sensors in Smart Cities. Orange is also continuing the work on the standardisation of future cell networks (2G/4G)2 for the IoT, which will be operational in 2017 and for 5G by 2022.
Stéphane Richard, Chief Executive Officer of Orange, said: "The development of the Internet of Things is expected to surge in the coming years. By 2020, we believe that there will be more than 25 billion objects connected in the world.
“As a part of our new strategic plan Essentials2020, Orange has an ambition to become the number one operator for the Internet of Things. To answer all the needs, we decided, as a supplement to the cellular networks, to deploy a national network dedicated to objects that need narrow-band connectivity, and also to low energy consumption. This network, based on the technology LoRa, will gradually open from the first quarter of 2016.
“Beyond connectivity, Orange is also involved in the distribution of connected objects, in the aggregation and data processing stemming from these objects as well as proposing value-added services in the field of health and well-being, the connected home and Smart Cities."
The LoRa network will be operational from the first quarter of 2016 and progressively deployed nationwide. It will be used to transport communications from objects' for Orange, its mass market and business customers. Orange has tested the LoRa technology by carrying out a large scale trial in Grenoble, involving more than 30 partners.
The objects have different connection requirements, which depend on the speeds, criticality and frequency of the information communicated. In order to ensure the development of these uses, Orange has chosen to invest in a range of solutions, to become an operator of the IoT, whatever the objects' needs and whatever the technology used.
Beyond connectivity, Orange will supply its mass market and business customers with services and platforms that are compatible and interoperable with these different networks dedicated to connected objects.
1 These networks carry exchanges between small connected objects, that are not plugged in, which require a low connection cost and for sporadic, non-critical communications.
2 2G EC-GSM (extended coverage GSM) standard / 4G: cat 0 LTE and PSM (Power Saving Mode).
Orange is one of the world’s leading telecommunications operators with sales of 39 billion euros in 2014 and 157,000 employees worldwide at 30 September 2015, including 98,000 employees in France. Present in 28 countries, the Group has a total customer base of 263 million customers worldwide at 30 September 2015, including 200 million mobile customers and 18 million fixed broadband customers. Orange is also a leading provider of global IT and telecommunication services to multinational companies, under the brand Orange Business Services. In March 2015, the Group presented its new strategic plan “Essentials2020” which places customer experience at the heart of its strategy with the aim of allowing them to benefit fully from the digital universe and the power of its new generation networks.
Orange is listed on the NYSE Euronext Paris (symbol ORA) and on the New York Stock Exchange (symbol ORAN).
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