Belgacom

Belgacom is a company Belgian of Télécommunication, resulting from the Control from the Telegraphs and Telephones (RTT).

Structure of the group

The Belgacom group, composed of Belgacom S.A. and its Subsidiary S, is the first company of telecommunication in Belgium.

The group is active in three great branches of industry:

services of fixed line (FLS)
mobile departments of communication (MCS)
international services of carrier (ICS)

Services of fixed line (FLS)

These activities are mainly assured by Belgacom SA. They gather a complete range of vocal services, services of data transmission and services Internet via the fixed line with the residential and professional customers.

Belgacom S.A. is the leading vendor of services of connectivity in Belgium, where she proposes a range of services for companies and private individuals.

Since May 2005, Belgacom S.A. entered the world of television while launching Belgacom TV, the first numerical television offer to Belgium. This launching made it possible the Belgacom group to become a quadruple operator play with whole share (fixed telephony, Internet, mobile telephony and television).

Mobile departments of communication (MCS)

These activities are ensured by the subsidiary company Belgacom Mobile, better known under the name Proximus. Since August 2006, Proximus belongs to 100% with the Belgacom Group following the repurchase of the 25% of Proximus held by Vodafone.

Proximus offers a wide range of mobile departments of communication to residential and professional customers in Belgium.

In 2005, Proximus was the first mobile operator in Belgium with launching services UMTS bound for the general public.

International services of carrier (ICS)

Within the Belgacom group, these activities are ensured by the subsidiary company Belgacom ICS, a held company with 72 % by Belgacom S.A. and with 28 % by Swisscom Fixnet.

The company provides services of capacity and connectivity of voice and data to the telecommunications operators in the whole world.

It is today the eighth larger operator in the world in terms of volume of vocal traffic and the world leader in terms of services of indication for the mobile operators.

History

Beginnings of telephony in Belgium

In 1879, the Belgian telegraphic services installed a phone line at the Parliament and, the same year, various private contractors deposited requests for exploitation of phone networks in various Belgian cities.

The absence of a legislation in the first years of exploitation minimized the chances of success of the development of the phone network. This absence forced the Belgian authorities to develop a legislative framework regulating the exploitation of telephony in Belgium.

From 1896, the whole sector of telephony passed between the hands of a public company.

In 1913, most of Belgium was accessible by telephone. The number of subscribers remained limited, but the majority of the stations, post offices and telegraph were equipped with public phone boxes.

After the First World War: passage to the autonomous state enterprise

The First World War represented a stop Net and final as regards telecommunication in Belgium.

One of the explanatory factors of this stop is explained by the financial dependence of the state enterprise. The damage caused at the time of the conflict and dismantling partial of the networks placed the administration of the telegraphs and telephones in front of a need for colossal investments.

July 19th, 1930 is created the Control of the Telegraphs and Téléphones (RTT). The state enterprise gains in autonomy: it is not from now on dependant any more on the annual budgets of the State and with necessary competence to carry out an own management.

The integration of the RTT in the industrial policy of the State

With the creation of the RTT, enormous sums are invested in the Belgian phone network. Social layers unceasingly broader have from now on access to telephony.

Parallel to that, another phenomenon intervenes which quickly will become an important load for the company. The State goes, within the framework of the economic crisis of the years 1930, to use the RTT in its industrial policy and of employment. By forcing the realization of a complete automation of the Belgian phone network, the State tries to counter the high unemployment rate of the sector.

This phenomenon strongly decreases the autonomy of the RTT. The law of 1930 very had indeed clearly clarified that the company could conceive and apply in an independent way an investment plan. While imposing its policy of employment, the State thus went against the principle first of the law. This last element will become very quickly during the time of post-war period a problem structural of the RTT.

Company of point to the crisis: the RTT in the post-war period

The shortly after the Second world war, the RTT is seen confronted with important damage and a dismantling partial of the networks. In order to start again the dynamics of the sector quickly, the state decides to financially intervene.

During this period, the demand for telecommunication services increases at high intervals. The number of subscribers increases very quickly: approximately 350.000 in 1946 to 522.000 in 1951 and 1.049.000 in 1965. This growth of the customers brings a very high rate/rhythm of investments. Thanks to all that, the RTT is located towards the end of the year 1960 at the point of technological development and social.

But this expansionist management has a negative side. Starting from the end of the year 1960, the losses start to accumulate. And the blossoming of a world economic crisis since 1973 does not arrange anything with the problems. The financial position of the company nothing but does be degraded. This situation will lead the RTT to set up starting from the middle of years 1970 of important stabilization programs.

During years 1980 is born the conviction that the sector of telecommunications will be one of the most significant development poles of this end of 20 century. Thus, as from 1981, the leaders of the RTT will begin the major reorganization of the RTT in order to solve certain problems structural of the company.

Parallel to that, another test makes his entry in 1987. the European commission promulgates its Green Book for telecommunications whose central theme is liberalization .

The years 1990: law Belgacom and evolution of the sector under European influence

The Green Book of 1987 takes part in Belgium in the base of the law of March 21st, 1991, which creates a new type of government enterprise enjoying a greater autonomy of management. The Belgian sector of telecommunications is thus reorganized and sees the creation of Belgacom, autonomous state enterprise.

This law aims to create an environment favourable with the competing development of the market of telecommunications in Belgium. From now on, a contract of management defines the prerogatives of the company and the public authorities so as to guarantee the offer of a certain number of public services of general utility and an autonomy of sufficient management and more widened much than than the law of 1930 had not envisaged.

From 1994 an acceleration of the European processes of convergence occurs. The European commission declares in a new Green Book that the exploitation of the networks and telephony must also be open to competition. 1994 are also the year when Belgacom creates Proximus, the first cellular network in Belgium. This activity as well as the old analogical system Mob2 are transferred on July 1st, 1994 towards a subsidiary company: Belgacom Mobile whose shareholding is the following: 75% Belgacom - 25% Air Touch, then Vodafone in 1999.

In parallel, Belgacom prepares to face competition while being combined in Ameritech, Tele Danmark and Singapore Télécom. Various Belgian financial institutions also react and are combined with the consortium, which is baptized ADSB. The Belgian state preserves 50.1% of the actions and thus remains the principal shareholder.

The year 2001 sees the installation of the BeST plan which mainly aims at restructuring the company by dividing it into four “businesses units”. Belgacom also demolishes certain activities like Belgacom France, Ben, his activities of safety as well as the French activities of Infosources.

The human shutter of the BeST plan will intervene in the current of the year 2002. The objectives are multiple in a company which, at the time, occupied a too great number of workers: offer suspension of the activities, offers part-time work and reconversion are proposed with most of the personnel.

In an increasingly open market and where competition is done each day more aggressive, Belgacom decides into 2003 to make a bet on the future by modifying its image radically. Change of logo, of colors and manifest will to be closer to the customers are the bases on which the ex-RTT works.

These radical changes in the philosophy of the company precede the setting out of purse of the operator. Indeed, on March 22nd, 2004, Belgacom is with dimensions for the first time on the market Euronext. The Belgian state remains the majority shareholder with 50% + 1 action while consortium ADSB is demolished of the whole of its actions.

This operation makes it possible the Belgian historical operator to release from important means to finance its ambitions. Indeed, the hour is with broad band (broadband) and the financing of the Broadway project (to cover the whole of the fiberoptic national territory) requires large investments.

2004 are also the year when the historical operator carries out his first tests of digital television with for ambition finding new sources of revenue in an increasingly competing market.

2005: Belgacom TV and tender offer on Telindus

The year 2005 is remembered by two major events for Belgacom: the launching of Belgacom TV and the public offering of purchase on Telindus.

The first steps of the launching of digital television in Belgium appear for the first time in the current of the year 2004 when Belgacom carries out its first tests of digital television near a few hundreds of hearths.

In May 2005, the Belgian operator surprises the market by taking down the rights of diffusion of professional Belgian football (D1 & D2) for the three next seasons via his subsidiary company Skynet iMotions Activities.

This action precedes the imminent launching of Belgacom TV which is born in June 2005. This numerical television offer via the ADSL is the first of the kind in Belgium and transforms Belgacom into a quadruple player offering fixed telephony, mobile telephony, access Internet high rate as well as television. It makes it possible moreover the Belgian company to guarantee new sources of revenue insofar as the margins released by its historical activities are increasingly weak.

2005 are also the year of the public offering of purchase on Telindus, undertaken leader in the sector of the integration of the networks. First, considered as hostile by the direction of Telindus, is quoted in the current of September. It is the beginning of a stock exchange saga which will last practically four months. The tensions are sharp between the two companies and the various speakers in this file are made the war by way of press.

After a against-tender offer taken along by France Telecom, it is finally Belgacom which gains the setting and which arrives, at the end of December, with a conditional agreement on a partnership.

2006: Premises of convergence

The year 2006 is mainly marked by the repurchase in August of the 25% of Proximus held by Vodafone. This operation made it possible Belgacom as well as possible to prepare with convergence. Indeed, the market trend seems to move towards offers of service grouped. The service providers of telecommunications in Belgium meet more and more the user's needs by proposing solutions going of services marketed separately with offers “quadruples play” grouped and complete.

Side television, Belgacom continues to develop its numerical television offer. At the end of September 2007, the company counted 249.434 customers Belgacom TV. The deposit rate of digital television is as for him of 80% of the population.

On its side, Telindus changed name in June 2006 and is called henceforth Telindus/Belgacom ICT.

Structure of the shareholding

Situation at June 30th, 2007:

Financial data

Financial data in million of euros.

External sites

the Belgacom site introducing different the businesses units, the various products as well as the structure of the group
the Telindus site presenting the whole of the solutions suggested by the company
the Skynet site, the gate of contents of the group Belgacom
the site of the Belgian Institute of the postal services and telecommunications (IBPT), the Belgian regulator
the site of Proximus, the mobile phone subsidiary of the group Belgacom

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