Francois Thenoz

2006 company performance 23 countries

160 millions customers (100 m in mobile)

Revenues : 53 billion euros

Mobile : 53% of France Telecom revenues

One brand

Orange labs (China, USA, …..)

2006 company performance

…we have moved from a french centric FT incumbent fixed telecom company

… to an international Orange integrated operator

1st integrated operator in Europe

parc clients dans les sociétés consolidées au 30/06/06

Royaume-Unimobile : 14,95 millionsinternet : 1,92 million

Francemobile : 22,39 millions

fixe : 33,73 millionsinternet : 6,39 millions

Espagnemobile : 10,66 millions

fixe : 2,82 millionsinternet : 1,14 million

Belgiquemobile : 3,02 millions

fixe : 0,56 million

Pays-Basmobile : 1,99 millioninternet : 0,59 million

Polognemobile : 11,13 millions

fixe : 10,39 millionsinternet : 1,80 million

Suissemobile : 1,28 million

Slovaquiemobile : 2,55 millions

Roumaniemobile : 7,21 millions

Moldaviemobile : 0,73 million

mobile internet fixe

Orange footprint in Africa :a dynamic growth area

fixe internet mobile

parc clients au 30/06/06 dans les sociétés consolidées

franchise uniquement

Tunisieinternet : Planet Tunisie (franchise)

Marocinternet : Maroc Connect (franchise)

Malifixe : 1 000mobile : 0,86 million

Sénégalfixe : 0,27 millionmobile : 1,47 millioninternet : 24 000

Côte d’Ivoirefixe : 0,26 millionmobile : 1,52 millioninternet : 8 000Camerounmobile : 1,11 million

Algérieinternet : EEPAD (franchise)

Guinée Equatorialemobile : 44 000

Jordaniefixe : 0,25 millionmobile : 0,41 millioninternet : 9 000

Egyptemobile : 5,15 millions

Madagascarmobile : 0,42 million internet : DTS (franchise)

Botswanamobile : 0,35 million

Mauricefixe : 0,14 millionmobile : 0,18 million internet : 28 000

an extensive coverage based on GSM + GPRS + EDGE + W-CDMA

50 Live TV channels

Video on demand

Downloading

seamless serviceBusiness Everywhere

Internet / Intranet access

(2G + Edge + 3G + HSDPA)

Mobile Internet

Examples of some existing

services

• 53 channels (largest TV offer in the world)

• LCI Mobile : 1st TV program made only for mobile

• “regional news” (M6) already included

Orange TV

today learnings to fuel future growthFrancois Thenoz

VP Strategic Marketing

Orange

2.6 billions mobile customers : +20%

World handsets sales : 1 billion +22%

India and China : 5 millions/month each

World telecom services market: +5% (with +7%internet /11%mobile)

88 HSDPA networks

150 millions 3G (2007: ~300M)

270 millions Fixe Broadband

Few numbers to keep in mind

2006 :150 Millions 75% w-cdma / 25% ev-do 2007 : 300 M

+ 3G data cards momentum HSDPA data cards : 7Mega/s

The 3G S curve has

started

Be patient : we are just at the starting point !Volume will come for every compelling services

Higher speeds

improve customer experience

20 sec

4 sec

3G3G

Download Music MP3

2G

4 min

Evolved

20 sec

90 sec

Download Video

7 minToo long!

3G3G2G Evolved

© 2007 MMetrics, Inc. All rights reserved Except where otherwise specified, all data is for: 3 month average ending Feb ‘07

Q4 2006 consumption penetration measures

Country US DE UK FR IT ESUnique users (13+) millions 207.0 46.0 44.5 44.5 44.0 32.0

UMTS reach 1.1% 12.4% 16.9% 11.7% 28.6% 16.9%Sent text message 39.2% 81.6% 85.6% 73.3% 84.8% 85.3%Sent/Received Photo message 14.8% 20.8% 29.6% 21.1% 31.3% 29.1%Accessed news/info 9.9% 3.3% 13.7% 7.4% 5.8% 5.7%Used email 9.3% 6.6% 7.9% 6.9% 9.6% 9.7%Downloaded ringtones 9.7% 5.0% 4.4% 5.2% 5.1% 6.7%Used instant messaging 6.7% 3.2% 4.2% 3.2% 5.8% 6.8%Used phone as music player 3.0% 9.6% 11.5% 4.7% 10.0% 8.9%Download games 3.3% 2.8% 5.1% 1.4% 3.3% 5.6%Downloaded graphics 3.3% 2.0% 2.0% 2.1% 2.9% 2.6%Watched commercial mobile video / TV 1.2% 0.5% 1.1% 0.8% 5.7% 1.0%1.3%

adapt & focus services with usage patternbuild expectations taking into account volume

Growth-share matrix by services 2005-

2010

Source: Informa (2005)

-20%

0%

20%

40%

60%

80%

100%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Ringtone downloadsRing-back tonesMusic downloadsStreaming audioGames DownloadsOnline multiplayerDatacardsOnline Single PlayerLotteryCasino gamingSports bettingVideo telephonyStreaming videoVideo messagingVideo Download and playAdult video clip download and streamingAdult image downloadsAdult premium text messaging Adult premium voice servicesIcons/character downloadsLogos/branded imagesGreeting cardsWallpaper/ScreensaversCartoons/avatarsCaller Group Ids

2005-2010 CAGR

2010 entertainment market share

1

2

5

2

33

4

5

67

13

8

10

108

6

22

12

99

11

11

12

1415

16

18

19

13

1415

16

20

124

17

17

18

19

2023 21 21

2223

25

24

25

47

Risky but good to bet in ?

Cash generators

Require high Investments

niches businesses

broadband for

everyone

So, Orange is committed today toward

…with a multiple screens strategy

IPTV penetration VoD catalog FTTH trial …

LiveBox at home 3G data cards Business everywhere…

content everywhere

discovering and accessing content

flexible consumption

effective sharing

personalisation

monetising

releasing the potential of music, TV & video

music – a seamless experience

across convergent devices

listen, re-use, store, share, organise

whenever, wherever

several different operating systems

difficulty monetising music

content partnerships

DRM mechanism

good user experience drives consumption

discovery

Orange TV – 50+ channels, 30,000+ downloads

“Zap It” service

TV & video – aiding discovery

user generated content everyone is an artist, a journalist, an editor

capture any form of content

access, view and rate

Orangeblog

BubbleTop

early days

summing up learning and working with complexities

breaking down barriers

work towards seamless, converged offers

create mutually beneficial initiatives with a whole range of partners

understanding, trust and appreciation

realistic expectations

open