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France Telecom

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Page 1: France Telecom
Page 2: France Telecom

Project Progress Report

FRANCE TELECOM (ORANGE)

Project Progress Report

FRANCE TELECOM (ORANGE)”

Balaji Institute of Telecom & Management

Contents

Chapter 1

Introduction1.1 Abstract

1.2 Objectives1.3 Scope

1.4 Methodology

Chapter 2 2.1History

2.2Management team2.3Service offered

2.4Value chain

Chapter 3

3.1 Analysis of Problem under Research3.2 Alternative Solutions and their advantages & disadvantages

3.3 Proposed Solution3.4 Justification of the Solution

3.5Operating data 3.5.1Market share

3.5.2Statistical data - Orange 3.5.2.1 Market share

3.5.2.2 Aggregate 3.5.2.3 Churn rate

3.6 SWOT analysis

Chapter 4

FindingsRecommendations

Conclusion

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Submitted to : Abhijeet SinghFaculty BPM

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Project Progress Report

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References & Bibliography

INTRODUCTION

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FRANCE TELECOM (ORANGE)”

ABSTRACT

France has the third largest telecoms market in Europe and the number one provider of

broadband internet services in Europe and one of the world leaders in providing telecommunication services to multinational companies.

Orange is the key brand of France telecom, one of the world’s leading telecommunication operator. Orange became the group’s single brand for internet,

television and mobile services in the majority

It is one of the largest in the world. It currently employs about 191,000 people (half outside of France) and has nearly 159 million customers worldwide (2007).

It is the only telecom operator to have en international level innovation chain that is fully integrated, from R&D through to the release of new solutions on the market developed internally or through partnerships. Orange lab’s global network connects team involved in research, development, implementation of networks and marketing new convergent products.

OBJECTIVES OF THE STUDY

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The following are the objectives of studying the Reliance Communications

1 . To understand the functioning of france telecom – its policies, corporate strategies , marketing practices and the technology it deploys.

2 . To analyse the telecom value chain of france telecom. Its products and services.

3 .To understand the france telecom market.

SCOPE OF THE STUDY

With the help of this study, we can understand the telecom business and present telecom scenario in France . This study will help us to understand the whole process of

telecom service provider.

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METHODOLOGY

We searched all the information about france telecom from internet and magazines. Information has been collected from the sites as:

www.google.com, www.wikipedia.com,

www.orange.com http://www.francetelecom.com/http://zenobank.com/index.php?symbol=FTE&page=quotesearch

etc.

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Project Progress Report

FRANCE TELECOM (ORANGE)”

HISTORY

France télécom was Known as Direction Générale des Télécommunications upto 1988.

Became autonomous in 1990.

Head quarters being in PARIS.

Brand ORANGE was created in 1994 for Hutchison Telecom's UK mobile phone network, which was acquired by France Telecom in August 2000.

In August 2005, FT acquired a 77% ownership in the Spanish mobile phone company Amena, rebranding it Orange España.

In December 2006, FT announced the acquisition of DIWAN and SILICOMP specialized on the Customer Critical Application (CCA) and Security for enterprises

In November 2007, FT announced it had acquired a bid to secure 51% of Telkom Kenya's shares from the Government of Kenya, but will have to bring about 11% of

shares back out onto the market three years following the deal.

In June 2008, FT abandoned a bid for Swedish operator TeliaSonera after the two companies failed to agree terms.

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SERVICES OFFERED

France Télécom is a communications access provider offering customers access through multiple platforms. The four key platforms France Télécom operates are:

Fixed line telephone, mainly in France and Poland. Broadband access.

Mobile phone telephony. Most recently, IPTV, though currently only in France and Spain, with MaLigne TV, now

known as Orange TV.

France Télécom is present in the US through its Equant enterprise services and its venture capital arm, Innovacom as well as two R&D labs: one in Boston and the other in South

San Francisco, California.

France Telecom's standard broadband offering is the Livebox, a combined modem and Wi-Fi router, with over 6 million units sold by August 2008.

OpenTransit is France Télécom's backbone network. It covers Europe, the United States, Japan, Hong Kong, and loops back to Paris.

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TELECOM VALUE CHAIN

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OEM 1: Stands for original equipment manufacturers level 1.It comprises all electronic chip making companies like Intel, Xilinks, Macroland,

OEM 2: Stands for original equipment manufacturers level 2.It comprises basically the networking elements vendors like switches, routers and gateways. Companies like Cisco,

Avaya, Alcatel, Lucent, Nortel are into this.EV: Stands for equipment vendor. Companies like Nokia, Siemens, Erricson, Samsung,

LG are into this business.NI: Stands for network integrator and the operation areas are to integrate the network

elements to have a fault tolerant network infrastructure.

NO: Stands for network operators. It the basic infrastructure company. Vodafone, Bharti Airtel. NTT DoCoMo are the few names.

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Detailed Value Chain

AUDIOCODES1

ALCATEL,HUAWEI

AUDIOCODES

COSMOCOM2

FRANCETELECOM

Infostrada,Accugraph Corporation

Recife Computer-Aided NetwoCrk

Management,cisco,

Esmertec(TM)

Gracenote

Musicwave and

Viaccess

ORANGE

TEN

EU

alcatellucent nokia

Valista, SRT

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SP: Stands for service provider. The wireless or wireline service provider companies like Airtel, Hutch, Verizon, Cingular, Vodafone, BT, T Mobile KDDI, SK Telecom,

China Mobile, China Unicom, China Netcom are the few names. MVNO: Stands for mobile virtual network operator. Depending upon the

infrastructure they are owning they are further classified into Full or Partial MVNO. They do not own the infrastructure or the service rather they leverage upon their brand names.

Virgin Atlantic is the MVNO. EU: Stands for the end user. The final entity who consumes the services.

SI: Stands for the system integrator. They have product as well as domain knowledge. IBM, Accenture, Cap Gemini, EDS, CSC, Infosys, Wipro, TCS are the few names.ISV: Stands for independent software vendor. The are the original devloper of the

software packages. Amdocs, SAP, Convergys, Subex, Lifetree, Xius, Bharti Telesoft are few names.

ASP: Stands for application service provider. Organizations that host software applications on own servers within own facilities. Customer i.e. companies willing to outsource the IT requirements, access the application via private lines or the Internet.

3PAP: Stands for 3rd party application provider. There are value added reseller and do not have permanent contract with either service provider or the system integrator.

CA: Stands for the content aggregator. They basically do the conversion work of information into required protocol suit. Reuters, New York Times are the few names.

CP: Stands for content provider. They are the information supplier. Google, Indiatimes are to name a few.

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MARKET VALUE

Personal communication services Market penetration rate-- 88%

Orange network coverage -- 99% Market share excluding MVNOs – 43.8%

Number of customers (000s)---24226 Number of broadband customers (000s)-7407

Home communication services Number of fixed line customers (000s)—22962 Number of Internet customers (000s)—7917 Number of ADSL customers (000s)—7296

Voice market share—71.9% ADSL market share—49.4%

Sales (in m€) 2004 2005 2006 2007

Personal communication services

8 365 9773 9882 9998

Home communication services

18 002 17718 17657 17957

Gross operating margin (in m€)

Personal communication services

3 682 3 626 3 831 3 861

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Home communication services

5 763 5 920 5 650 6 482

What is SIPOC?

SIPOC is an abbreviation of:

It provides a “template” for defining a process, before you begin to map, measure, or improve it.

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Whenever you are planning to start some process management or improvement activity, it’s

important to get a high-level understanding of the scope of the process first. A SIPOC Process

Definition helps the Process Owner and those working on the process to agree the boundaries of what they will be working on.

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SIPOC Example:

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Suppliers: Significant internal/external suppliers to the process.

Inputs: Significant inputs to the process. This would include things

such as materials, forms, information, staff, etc.

Process: One block representing the entire process.

Outputs: Significant outputs to internal/external customers. This

would be anything the business unit distributes. Frequency/timing is

listed along with the output. Examples of outputs would be reports,

ratings, products, documents, etc.

Customers: Significant internal/external customers to the process.

This would include anyone who receives outputs. It is important to

note that the customer must get the output directly from the business

unit and does not necessarily have to be a user of the output. If the

output is received from a third party, they are not customer s.

Examples of customers could be managers, CEOs, boards of

directors or other departments.

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Defining a Process with SIPOC

SIPOC Process Definition Template

Steps To Complete The SIPOC Diagram

SIPOC diagrams are very easy to complete. Here are the steps you should

follow:

1. Create an area that will allow the team to post additions to the SIPOC

diagram. This could be a transparancy (to be projected by an overhead)

made of the provided template, flip charts with headings (S-I-P-O-C) written

on each, or headings written on post-it notes posted to a wall.

2. Begin with the Process. Map it in four to five high level steps.

3. Identify the Outputs of this Process.

4. Identify the Customers that will receive the Outputs of this Process.

5. Identify the Inputs required for the Process to function properly.

6. Identify the Suppliers of the Inputs that are required by the Process.

7. Optional: Identify the preliminary requirements of the Customers. This

will be verified during a later step of the Six Sigma measurement phase.

8. Discuss with Project Sponsor, Champion, and other involved stakeholders

for verification.

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SWOT ANALYSIS

Orange is a subsidiary of France Telecom and provider of mobile communications services. Orange holds strong market position in most of its markets. The company's strong position in the markets it serves provides it with a competitive advantage. However, intense competition from leading firms could erode the company's margins and reduce its profitability.

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SWOT MATRIX

SWOT MATRIX FOR FRANCE TELECOM (ORANGE)

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Strength Weakness

Oppurtunities Threats

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STRENGHTS Wide customer baseStrong brand imageStrong presence in European markets

WEAKNESSES Weakening mobile business in UK andFranceWeak presence in Asian markets

OPPURTUNITIES 3G technologyGrowth in European residential internetmarketFreeMove Alliance

THREATS Saturation in the European mobile marketEU regulation on international roamingTelecom consolidation

S W O T M A T R I X

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BIBLIOGRAPHY

• www.orangebusiness.com/mnc • www.wikipedia.com

• www.francetelecom.com • www.orange.com

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