France Telecom (,) is the principal French company of telecommunications and the 71ème undertaken world. It employs close to: 191000 people and is useful nearly 159 million customers in the world. Its Chairman and managing director (PDG) is currently Didier Lombard.

The company today

France Telecom develops and markets three big families of services under the mark Orange :

  • the residential departments of communication (SCR), which remain under their historical mark in the countries where France Telecom is historical operator (France, Poland, Jordan, Senegal, etc)
  • the personal departments of communication (SCP), i.e. mobile,
  • departments of communication of company (SCE).

the residential services use mainly the traditional fixed line, possibly equipped in ADSL, and are marketed under the marks France Telecom or Orange (49 million customers in fixed telephony, 12 million in Internet high banc):

the personal services use mainly the mobile networks of 2nd and 3 {{E}} generations and are marketed under the mark Orange (98 million customers).

the services with the companies are more especially intended for the community activities and are mainly marketed under the mark Orange Business Services :

In order to secure a durable policy of growth, the France Telecom group widens her activities with the sale of contents (music, cinema, remote loading…), with the E-trade, with the online ad, the solutions M2M, House automation, and of Remote support to the patients. It also strongly develops the geographical perimeter of its activities, by massively investing in the countries known as emergent .

In the competing field of telecommunications, France Telecom, through her NExT plan, initiated a marketing policy and marketing of convergence (access to the services since the fixed telephone, mobile, Internet; single invoicing…). Policy which tends to extend to the unit from the telephone operators.

History

Télécoms, administrative service of the State

Under the French revolution, in 1792, the first communication network is born to make it possible to quickly convey information in a country in war and not very sure. It is about the optical network of telegraphy of Chappe.

After the invention of the electric Telegraph and then of the Téléphone the French State creates in 1878 a Ministère of the Stations and Télégraphes, this last appendix soon the services of the telephone, which are nationalized in 1889. However it is only in 1923, that second “T” appear, the ministry for P & T becoming that of postal and telecommunications authorities.

In 1941, a Head office of Telecommunications is created within this ministry and in 1944 the Hundred, National center of Studies of Telecommunications, has the role of developing the Industrie Télécommunications in France.

In the Years 1970, the France puts the twice the work to make up for its lost time on several other nations with the program “delta LP” (increase in the principal lines). In fact, with the assistance of the French industrialists, are developed by the engineers and researchers of the Hundred, numerical commutation, the minitel, the standard GSM.

Creation of the France Telecom company

To answer a European directive of competition of the public services, the Head office of telecommunications becomes France Telecom on January 1st, 1988.

The law of July 2nd, 1990 transforms France Telecom into an owner of public law, whose Marcel Roulet is the first President; it is equipped with a legal entity distinct from the State and, an financial autonomy acquires. Previously, the budget of Telecommunications was registered within the additional budget of the postal and telecommunications authorities voted each year by the National Assembly.

In September 1995, Michel Bon is named with the head of the France Telecom Group.

To prepare the opening to competition at January 1st, 1998, a law is voted in July 1996 transforming the public owner into Public limit company whose French State is only the shareholder.

Mad years

In 1997, the capital of the anonymous new business was open successfully within the framework of an euphoric purse due to the phenomenon of the bubble Internet, one second opening took place in 1998. Left late in the train the internationalization launched by international competitors such Vodafone, France Telecom starts to seek targets with most extremely of the valorization of the years of the bubble Internet. This more especially as its alliance with Deutsche Telekom burst when the latter announced a project of conciliation with Telecom Italia without informing French.

The group repurchased the large majority of Orange plc in 2000 and integrality in 2003 then it amalgamated it with its mobile phone activities (Itinéris, OLA, Mobicarte) in a named subsidiary company Orange SA. FT also carried out many other acquisitions of companies (resold for some) in the world becoming the fourth operator of planet by his size (GlobalOne, Equant, Internet Telecom, Freeserve, EresMas, participation in Wind, NTL, Mobilcom…)

Black years

Following change of qualification of part of the debt of " length terme" with " short terme" in order to obtain a better interest rate, the shareholders realize that of 2002 at 2005 France Telecom must refund each year between five and fifteen billion Euros of debt.

The course of the action crumbles with 6,94 Euros on September 30th, 2002, whereas it was with 219 Euros on March 2nd, 2000. October 2nd, 2002, the general president-director is Thierry Breton. It was called to rectify the company which is at this time there, the second most involved in debt company world (in term of current liability). It obtained fifteen billion refitting of the debt to be dealt with by the banks and the investors, fifteen billion capital growth claimed in the State then majority shareholder, and fifteen billion treasury to be released thanks to in-house economies. Named with the government, he resigns of France Telecom end February 2005.

The current period

In September 2004, the French State yields part of its actions to pass below the bar the 50%. France Telecom becomes a private company. 115 years after its nationalization, the telephone becomes again private in France.

July 27th, 2005, France Telecom announces the repurchase of 80% of the mobile telephone operator Amena, holder of 24% of market shares in Spain, for the sum of 6,4 billion euros including three by capital growth.

France Telecom also announced the deployment of the NExT plan whose objective is to provide to its customers, in an integrated way, the whole of the telecommunication services which they need.

The NExT plan is the recovery package of the company France Telecom which amongst other things aims at reducing the costs of the company, to follow a policy of products and services convergent, and to gather all the ensigns of the group under a single mark, (Orange), except for the fixed telephonies activities which remain under the denomination France Telecom. This thus involves the disappearance of many marks (Wanadoo, Equant,…)

According to the Dataxis company, France Telecom would be in 2005 the second operator world ADSL behind China Telecom and in front of American SBC Communications. He would be first European operator ADSL.

Since June 1st, 2006, France Telecom markets the whole of her products in the world under the only trade mark Orange . The logo (Esperluette) of the mark France Telecom became more rounded, the charter (color and police force) was modified.

In June 2007, the French State again yields 5% of its participation in France Telecom the public participation (French State and ERAP) is changed to 27%. On this same date, France Telecom resells Orange the Netherlands and acquires the supplier of Spanish access Ya, as well as the Austrian mobile operator One.

===

  • Didier Lombard, Chairman and managing director

  • Sanjiv Ahuja, Managing director of Orange and charged with the the United Kingdom
  • Gervais Pellissier, person in charge of finances of the Group and charged with Spain
  • Louis-Pierre Wenes, person in charge of the transformation of the Group and charged with the France
  • Olivier Barberot, person in charge of human resources of the Group and charged with the Poland
  • Barbara Dalibard, person in charge of the departments of communication for the companies
  • Georges Penalver, person in charge of strategic marketing and the Technocentre of the Group
  • Jean-Philippe Vanot, person in charge of the networks and the information systems of the Group

  • Jean-Yves Larrouturou, General secretary of the Group

Board of directors (April 20th, 2006)

Administrators elected by the General meeting:

  • Didier Lombard, chairman
  • Bernard Dufau, former chairman from IBM France
  • Arnaud Lagardere, Manager and active Associate of Lagardere SCA
  • Henri Marten, Honorary president of the Aerospace Company
  • Stephan Richard, Managing director of Véolia Transport
  • Marcel Roulet, Honorary president of France Telecom
  • Jean Simonin, mayor and vice-president of the Community of communes

Administrators representing the State:

  • Jean-Pierre Jouyet, department head with the General inspection of Finances
  • Jacques de Larosière, adviser with BNP Paribas
  • Denis Samuel-Lajeunesse, managing director of the Agency of the Participations of the State
  • Henri Greenhouses, vice-president of the General advice of Information Technologies

Administrators representing the members of the personnel:

  • Helene Adam
  • Rene Bernardi
  • Jean-Michel Gaveau

Administrator representing the members of the personnel shareholders:

  • Stephan Third

Representative of the Central committee of Company:

  • Jean-Paul Gristi

Reorganizations of the operational part of France Telecom

  • In 1980, there exist two types of directions in France: the operational regional managements and directions (DOT) which are under the cut of the first and supervise a department. All these directions depend on the head office of telecommunication (DGT). The operational establishments are organized according to the diagram " CCL/Agence/CPE/" who will persist about fifteen years. This diagram corresponds to a vision of the life cycle of the phone line: creation in CCL, sale in agency, SAV and counting in CPE. Each one of these establishments includes/understands approximately 150 people. To that is added functions in back-office: Telephone informations, center of invoicing.

  • In 1984, " delegations of zone" are created, it acts of a level higher than that of regional managements. These delegations of zones are however removed at the end of one year of existence approximately.

  • Towards 1987, computerization removes massively work stations in back-office (approximately a third), the personnel is assigned to new establishments (commercial agencies) and new functions (salesmen). It is a question of selling telephone service contracts, terminals or faxes. It is also the introduction of the VAT and the first liberalization, that of the added value services for which there will be never competitors to be declared.

  • In 1992, there are two reforms of face:

    • the reform of the classification which replaces the 700 ranks of civils servant by four classes and three levels in each class. Although that generates some grogne, makes the wage bill of it will increase largely more than what was anticipated.
    • regional managements are removed, the 2 to 3000 people who worked there are transferred in " National organizations of support (ONS) ".

  • In 1995, there is a new reorganization to pass to three markets (residential, small professionals and large companies) to face the needs increasing for the various customers, and the arrival of competition (SFR). The organization from now on is conceived around the uses of the customers and either of the products. The personnel is thus reallocated with change of trade.

  • In 1998, it quasi totality of the ONS are removed. It is also the beginning of the generalization of the Intranets within the company, as well as the explosion of Internet and of the offers in this field. France Telecom founds Wanadoo by repurchasing more than one hundred of companies.

  • In 2000, one of the markets created in 1995 is removed, the market " professionnels". It does not seem to have had commercial, organisational or economic motivation with this reorganization. Technical establishments of size regional are created. The agencies are reorganized doubly under the geographical angle (doubly of surface).

  • In 2003, the agencies are divided into two specialities (specialized agencies in the remote sale and the specialized agencies on sale physical). The geographical sizes also double (and the number of agencies is divided by two).

  • In 2006 regional managements are reduced to the regional institutional relation with a manpower divided roughly by ten. The capacity of organization of the operational activity of the company is transferred to the Territorial Directions. There is twice less DT than Dr. the size of the establishments managed by the DT usually reaches thousand people.

Manpower

Manpower pass from: 140000 people in 1993 with: 190000 people in 2006 after a peak with: 220000 in 2001.

60% of its employees are in France, 16% in Poland, 12% in the United Kingdom, 2% in Spain.

A progressive modification

: 140000 people in 1993 are primarily French civils servant. It remains less: 80000 civils servant in 2006. The people who are not under statute of civil servant, are in TDCI in the right of their country. Half of the personnel works out of France.

The more important turn over as from 2005. They are movements entering for experienced engineers who are allured by the relative stability of FT compared to the software firms. The departures exist, either by a system of anticipated retirement for the civils servant, or worms of the companies of high technology. The internal movements are numerous.

Trades

The functions are:

Remunerations

In 2005, according to the official local balance sheet of the company, approximately four employees out of five perceived a rough remuneration ranging between 2200 and 3300 Euros per month.

Financial data

The period of overall euphoric expansion of the end of the 20th century knew the other side of the coin in 2002. France Telecom was obliged to post for the first time since several decades an abyssal deficit following hazardous investments abroad in order to make of it a group of European size in preparation of the opening to competition. The financial debt Net of France Telecom at December 31st, 2006, in standards IFRS rises to 42 billion euros, that is to say a ratio net debt on operational gross margin of 2,2.

Related articles

Telecommunications | Public services | Right of telecommunications | Distributer | GSM | Smart card | Audiotel | satellite

External sites

  • France Telecom institutional Site of France Telecom

  • Shop France Telecom Online shop of France Telecom
    • Orange
  • the gate of the Orange mark
  • the new trades of France Telecom
  • Seen air of the head office of France Telecom, places of Alleray (Paris {{XVe}}) on Wikimapia
  • Évolution of the Social relations: communication cut to France Telecom

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