Orange to spend $7 billion on next generation networks

date: October 27, 2001

Orange will not follow its rivals, who are scaling back spending on 3G networks, in the hope of stealing a march on competitors when new services are introduced from next year.

Graham Howe, the deputy chief executive, said Orange was pressing ahead with plans to spend up to $7 billion on 3G networks during the next two years.

“We see it as an opportunity in more difficult times, when some people don’t have as much flexibility, to get an advantage,” he said.

Orange reported a 24 per cent rise in third-quarter revenue to £3.91 billion. Mr Howe said average revenue per user (ARPU), a key performance measure, had begun to stabilise after heavy falls in recent months caused by the rush for lower-margin pre-pay phones.

The results were supported by Vodafone, which said it had arrested a fall in ARPU one year ahead of expectations. Vodafone also reported that data services had grown to represent 9.1 per cent of revenue.

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