Wednesday, October 26, 2005

France Telecom Reaches 6.9 Million DSL, 142,000 MaLigne TV, 484,000 VoIP

France Telecom reported Q3 2005 revenues of EUR 12.26 billion, up 3.8% compared to EUR 11.82 billion on an actual basis in Q3 2004. However, the revenue growth was offset by a fall in earnings at TP and on a 7.4% decline in business services, prompting the carrier to cut its outlook for the rest of the year. Some highlights:

ADSL: As of 30-Sep-2005, there were 4.0 million customers in France (+61.2% year-on-year) and 2.9 million ADSL customers for the rest of Europe (up 74% year-on-year). In the third quarter of 2005, the Group had a 56.3% market share for new ADSL customers in France, compared to 42% of new ADSL customers in Q3 2004.

LiveBox: Over one million "Livebox" sold in France in early October, with sales picking up pace and a target of 1.5 million by the end of 2005. The LiveBox unifies home networks, provides the ADSL connection, VoIP, TV service, photos, music, etc. France Telecom has 134,000 LiveBox customers outside of France.

VoIP: As of 30-Sep-2005, there were 484,000 VoIP customers in France, and the new "Atout Telephone" range, which was launched in August, had 591,000 customers at the end of September. There were 67,000 VoIP customers outside of France.

TV-over-ADSL: As of 30-Sep-2005, there were 142,000 MaLigne TV customers in France (up 106% in 9 months) compared to 116,000 at the end of June, with deployment continuing (8.5 million households connectable by the end of September) for a target of over 180,000 MaLigne TV customers by the end of 2005. France Telecom will be introducing PVR capability for high-end set-top boxes. A VOD service was launched this week.

Mobile Services: As of 30-Sep-2005, there were 70 million customers (up 17% year-on-year) and in revenues on the Personal Communication Services segment in the third quarter of 2005 (up 10.1%, or up 6.7% on a pro forma basis).

Broadband Mobile: As of 30-Sep-2005, there were 643,000 Broadband mobile customers, including 424,000 in France; superseding earlier forecasts for 500,000 customers by the end of 2005

IP VPN: As of 30-Sep-2005, there were 375,000 "Business Everywhere" customers (up 22% year-on-year), alongside a 60% increase in IP-VPN connections in one year for the "Enterprise" segment.

CAPEX: CAPEX for Q3 was EUR 1.403 billion or 11.4% of revenues, compared to 9.9% in Q3 2004.

NeXT Converged OffersA new "Family Talk" package that offers unlimited calling between fixed and mobile users has 18,000 customers. An Orange/Wanadoo UK home broadband offer will provide 2 Mbps service for GBP 10.

Access Lines The total number of lines (including full unbundled lines) was 27.4 million, compared to 27.5 million a year ago.

Voice Market Share: Consumer voice market share in France was 69.8% for local, compared to 73.8% a year ago. Consumer LD market share was 58.8%, compared to 60.3% a year ago.

Enterprise: Enterprise sales declined 7.4% to EUR 1.879 billion. Fixed line telephony in France declined 10.4% compared to a year ago, while IP VPN acess, DSL and business outsourcing grew.

See also