Wireless phone operator Orange faces major challenges

January 19, 2005

After a decade of growth, Orange, one of the world's largest mobile phone operators, is at a strategic crossroads, where it faces the prospect of slower growth and diminishing revenues unless it pushes for international expansion, taking advantage of markets where it currently has a presence and expanding into other neighboring markets as opportunities present themselves, reports In-Stat (http://www.in-stat.com). How Orange acts in the next year will likely determine its direction and growth prospects for the next decade.

The Orange Group operates in 17 countries, of which two, France and the UK, account for more than two-thirds of the company's global subscriber base of 52 million. With these two nations accounting for the bulk of growth and revenue, it is difficult to view Orange as a truly global operator. Yet, in these two markets, it has established a highly successful model for growth.

A recent report by the high-tech market research firm found the following:

- In the UK and France, Orange built out and commercially launched its 3G wireless network, which is currently the largest in these markets.

- Orange's formula has included focusing on bringing value to customers by offering simple and competitive pricing, and through offering innovative and advanced services that customers want.

- Orange's presence in less developed markets around the world should mean it is positioned to take advantage of increased demand for wireless services in under-penetrated markets, but most of Orange's operations in markets outside of Europe are not in countries that are expected to see strong wireless growth in the near future.