Project Progress Report

FRANCE TELECOM (ORANGE)”

Balaji Institute of
Telecom &
Management
Contents

Chapter 1

Introduction
1.1 Abstract
1.2 Objectives
1.3 Scope
1.4 Methodology

Chapter 2
2.1History
2.2Management team
2.3Service offered
2.4Value chain

Chapter 3

3.1 Analysis of Problem under

Research Submitted by :
3.2 Alternative Solutions and their advantages & disadvantages
3.3 Proposed Solution Abhishek Bansal
3.4 Justification of the Solution Abhishek Bansal
3.5Operating data
3.5.1Market share Kumar Manish
3.5.2Statistical data - Orange
3.5.2.1 Market share Nishant Paliwal
3.5.2.2 Aggregate
3.5.2.3 Churn rate Rakhee Sonkhla
3.6 SWOT analysis
Vandana Mishra
Chapter 4

Findings
Recommendations
Conclusion

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References & Bibliography

INTRODUCTION

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ABSTRACT

France has the third largest telecoms market in Europe and the number one provider of
broadband internet services in Europe and one of the world leaders in providing
telecommunication services to multinational companies.

Orange is the key brand of France telecom, one of the world’s leading
telecommunication operator. Orange became the group’s single brand for internet,
television and mobile services in the majority

It is one of the largest in the world. It currently employs about 191,000 people (half
outside of France) and has nearly 159 million customers worldwide (2007).

It is the only telecom operator to have en international level innovation chain that is fully
integrated, from R&D through to the release of new solutions on the market developed
internally or through partnerships. Orange lab’s global network connects team involved in
research, development, implementation of networks and marketing new convergent
products.

OBJECTIVES OF THE STUDY

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The following are the objectives of studying the Reliance Communications

1 . To understand the functioning of france telecom– its policies, corporate

strategies , marketing practices and the technology it deploys.

2 . To analyse the telecom value chain of france telecom.

Its products and services.

3 .To understand the france telecom market.

SCOPE OF THE STUDY

With the help of this study, we can understand the telecom business and present telecom
scenario in France . This study will help us to understand the whole process of telecom
service provider.

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METHODOLOGY

We searched all the information about france telecom from internet and magazines.
Information has been collected from the sites as:
www.google.com,
www.wikipedia.com,
www.orange.com http://www.francetelecom.com/
http://zenobank.com/index.php?symbol=FTE&page=quotesearch
etc.

HISTORY
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France télécom was Known as Direction Générale des Télécommunications upto 1988.

Became autonomous in 1990.

Head quarters being in PARIS.

Brand ORANGE was created in 1994 for Hutchison Telecom's UK mobile phone
network, which was acquired by France Telecom in August 2000.
In August 2005, FT acquired a 77% ownership in the Spanish mobile phone
company Amena, rebranding it Orange España.
In December 2006, FT announced the acquisition of DIWAN and SILICOMP specialized
on the Customer Critical Application (CCA) and Security for enterprises
In November 2007, FT announced it had acquired a bid to secure 51% of Telkom
Kenya's shares from the Government of Kenya, but will have to bring about 11% of
shares back out onto the market three years following the deal.
In June 2008, FT abandoned a bid for Swedish operator TeliaSonera after the two
companies failed to agree terms.

SERVICES OFFERED

France Télécom is a communications access provider offering customers access through

multiple platforms. The four key platforms France Télécom operates are:
Fixed line telephone, mainly in France and Poland.
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Broadband access.
Mobile phone telephony.
Most recently, IPTV, though currently only in France and Spain, with MaLigne TV, now
known as Orange TV.

France Télécom is present in the US through its Equant enterprise services and its venture
capital arm, Innovacom as well as two R&D labs: one in Boston and the other in South
San Francisco, California.

France Telecom's standard broadband offering is the Livebox, a combined modem and
Wi-Fi router, with over 6 million units sold by August 2008.
OpenTransit is France Télécom's backbone network. It covers Europe, the United States,
Japan, Hong Kong, and loops back to Paris.

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TELECOM VALUE CHAIN

OEM 1: Stands for original equipment manufacturers level 1.It comprises all electronic
chip making companies like Intel, Xilinks, Macroland,
OEM 2: Stands for original equipment manufacturers level 2.It comprises basically the
networking elements vendors like switches, routers and gateways. Companies like Cisco,
Avaya, Alcatel, Lucent, Nortel are into this.
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EV: Stands for equipment vendor. Companies like Nokia, Siemens, Erricson, Samsung,
LG are into this business.
NI: Stands for network integrator and the operation areas are to integrate the network
elements to have a fault tolerant network infrastructure.

NO: Stands for network operators. It the basic infrastructure company. Vodafone,
Bharti Airtel. NTT DoCoMo are the few names.
SP: Stands for service provider. The wireless or wireline service provider companies
like Airtel, Hutch, Verizon, Cingular, Vodafone, BT, T Mobile KDDI, SK Telecom, China
Mobile, China Unicom, China Netcom are the few names.
MVNO: Stands for mobile virtual network operator. Depending upon the
infrastructure they are owning they are further classified into Full or Partial MVNO. They
do not own the infrastructure or the service rather they leverage upon their brand names.
Virgin Atlantic is the MVNO.
EU: Stands for the end user. The final entity who consumes the services.

SI: Stands for the system integrator. They have product as well as domain knowledge.
IBM, Accenture, Cap Gemini, EDS, CSC, Infosys, Wipro, TCS are the few names.
ISV: Stands for independent software vendor. The are the original devloper of the
software packages. Amdocs, SAP, Convergys, Subex, Lifetree, Xius, Bharti Telesoft are
few names.
ASP: Stands for application service provider. Organizations that host software
applications on own servers within own facilities. Customer i.e. companies willing to
outsource the IT requirements, access the application via private lines or the Internet.
3PAP: Stands for 3rd party application provider. There are value added reseller and do not
have permanent contract with either service provider or the system integrator.

CA: Stands for the content aggregator. They basically do the conversion work of
information into required protocol suit. Reuters, New York Times are the few names.
CP: Stands for content provider. They are the information supplier. Google, Indiatimes
are to name a few.

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MARKET VALUE

Personal communication services

✔ Market penetration rate-- 88%
✔ Orange network coverage -- 99%
✔ Market share excluding MVNOs – 43.8%
✔ Number of customers (000s)---24226
✔ Number of broadband customers (000s)-7407

Home communication services

✔ Number of fixed line customers (000s)—22962
✔ Number of Internet customers (000s)—7917
✔ Number of ADSL customers (000s)—7296
✔ Voice market share—71.9%
✔ ADSL market share—49.4%

Sales (in m€) 2004 2005 2006 2007

Personal 8 365 9773 9882 9998
communication
services
Home 18 002 17718 17657 17957
communication
services
Gross operating
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margin (in m€)

Personal
communication 3 682 3 626 3 831 3 861
services
Home
communication 5 763 5 920 5 650 6 482
services

What is SIPOC?

SIPOC is an abbreviation of:

It provides a “template” for defining a process, before you begin to map,

measure, or improve it.

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SIPOC Example:

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• Suppliers: Significant internal/external suppliers to the process.

• Inputs: Significant inputs to the process. This would include things
such as materials, forms, information, staff, etc.
• Process: One block representing the entire process.
• Outputs: Significant outputs to internal/external customers. This
would be anything the business unit distributes. Frequency/timing is
listed along with the output. Examples of outputs would be reports,
ratings, products, documents, etc.
• Customers: Significant internal/external customers to the process.
This would include anyone who receives outputs. It is important to
note that the customer must get the output directly from the business
unit and does not necessarily have to be a user of the output. If the
output is received from a third party, they are not customer s.
Examples of customers could be managers, CEOs, boards of
directors or other departments.

Defining a Process with SIPOC

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SIPOC Process Definition Template

Steps To Complete The SIPOC Diagram

SIPOC diagrams are very easy to complete. Here are the steps you should
follow:
1. Create an area that will allow the team to post additions to the SIPOC
diagram. This could be a transparancy (to be projected by an overhead)
made of the provided template, flip charts with headings (S-I-P-O-C) written
on each, or headings written on post-it notes posted to a wall.
2. Begin with the Process. Map it in four to five high level steps.
3. Identify the Outputs of this Process.
4. Identify the Customers that will receive the Outputs of this Process.
5. Identify the Inputs required for the Process to function properly.
6. Identify the Suppliers of the Inputs that are required by the Process.
7. Optional: Identify the preliminary requirements of the Customers. This
will be verified during a later step of the Six Sigma measurement phase.
8. Discuss with Project Sponsor, Champion, and other involved stakeholders
for verification.

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SWOT ANALYSIS
Orange is a subsidiary of France Telecom and provider of mobile
communications services. Orange holds strong market position in most of its
markets. The company's strong position in the markets it serves provides it
with a competitive advantage. However, intense competition from leading
firms could erode the company's margins and reduce its profitability.

SWOT MATRIX

SWOT MATRIX FOR FRANCE TELECOM (ORANGE)

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BIBLIOGRAPHY

• www.orangebusiness.com/mnc
• www.wikipedia.com
• www.francetelecom.com
• www.orange.com

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