Orange France’s activities

In 2016, the French economy grew positively by 1.1% and comparably to 2015.

Traditional fixed-line telephony services

Further to the rapid growth in full unbundling, Wholesale Line Rental, and wholesale naked ADSL access to third-party Internet service providers, traditional telephony service business is on the decline. The downward trend has nevertheless slowed down thanks to a marketing policy aimed at mainstreaming offers while offering more exhaustive services.

Online, Internet access and Multimedia services

At end-December 2016, Orange had a total of 11.2 million broadband Internet customers, an increase of 3.9% year-on-year. The growth of convergent offers continued in 2016, with the number of Open customers (fixed and mobile) reaching 7.8 million at end-2016 (+11.2% compared with December 2015). IP telephony had 10.2 million customers at end-December 2016 and continued to grow in 2016 (+5.7%). Television by ADSL and satellite grew by 2.9%, with 6.6 million customers at end-December 2016.
The broadband customer base increased by 3.9%, with a share of approximately 50% of new broadband and very high-speed broadband subscriptions over the year, thanks to the commercial success of fiber and convergence offers. The broadband ARPU improved by 0.9%, thanks to the greater share of fiber services within the customer base.
In May 2016, Orange launched a new Livebox improving the line and  Wi-Fi speed, particularly with Orange’s fiber. This new box provides new features such as the creation of storage spaces on a local hard drive, access to files stored on Orange’s Cloud via an application, or mainstreaming of the installation process. In addition to its new Livebox, Orange launched a new TV decoder in May 2016 that makes it possible to improve customer experience, notably thanks to a wireless connection with the Livebox and the Ultra High Definition 4K technology quadrupling the picture resolution compared with High Definition, as well as a 3D sound with Dolby Atmos technology.

Internet portals and advertising management business

The Group’s main Internet portal, Orange.fr, has multi-screen availability – web, mobile and tablet – and is amongst the five leading websites in France, with close to 25 million Internet users each month.
As the leading French fixed Internet website, this portal ranks 5th after Google, Facebook, YouTube and Microsoft, with 19.5 million unique visitors each month. With 5.7 million unique visitors each day, orange.fr ranks 3rd in terms of daily web traffic, behind Google and Facebook. On mobile screens, orange.fr attracts 12.2 million mobile users as well as 5.2 million tablet users each month (source: Panel Médiamétrie / Netratings Audience, fixed Internet traffic, November 2016 – Global Internet, mobile and tablet, September 2016).

Fiber

In 2016, Orange accelerated again its very high-speed fixed broadband deployment program with about 7 million households connectable in FTTH, or a growth of 1.8 million households in 2016.

 

 

Carrier services

Carrier services include interconnection services for competing operators and unbundling and wholesale market services (ADSL and fiber), regulated by Arcep. Carrier services as a whole are growing, in particular data collection and transfer services for carriers and access services to FTTH lines rolled out by Orange.

Mobile telephony activities

At the end of 2016, the total number of Orange mobile customers was 30 million, up by 5.7%. This was due to the significant growth in contracts (including M2M), while prepaid offers continue to decline.
Orange increased its subscriber base to 26.5 million contracts at end- December 2016 (up by 9.7% compared with 2015), thanks to its segmentation strategy for the Retail and Enterprise markets and the development of M2M offers.
Orange is present in all market segments, including the entry-level market, offering contracts under the Sosh brand, available only on the Internet, with no commitment and no handset. Sosh had a total of 3.3 million customers at end-December 2016.
The number of Orange 4G customers was approximately 11.3 million at December 31, 2016, a year-on-year increase of 3.3 million customers. Since 2015, Orange only markets 4G offers, including socalled entry-level packages (Sosh Mini, Zen)

Distribution

Orange’s distribution and customer relationship channels consist of:

  • digital channels which are growing with the setup of 100% digital customer journeys via the Orange online store on Orange.fr.
  • dedicated customer centers based on the type of services marketed (accounting for 27% of sales actions);
  • a network of retail stores throughout France suitable for our customers’ needs with the pursuit of the rollout of our Smartstore concept, which was launched in 2015 to offer an unrivaled experience. At end-2015, this network comprised - amongst others - 487 retail outlets owned by Orange (including 9 Megastores and 42 Smartstores),

 

More information on the 2016 Registration Document: 3.1.1 France