Opportunities for property developers
Real estate in the Middle East and North Africa is booming. In the Gulf alone, there is an estimated $2 trillion of investment committed to new cities, hotels, towers, airports and ports. Increasingly, each development needs something special to differentiate it. This is where Solutions for Operators comes in we have a vision of the Smart City.

we can help you

We can help you create a campus-wide network. Broadband, telephony and enterprise networking can be offered today. Tomorrow you could you offer home automation, intelligent buildings and e-government, all provided over a network that you own. As an on-site operator providing value-added services to residents, businesses, retail outlets and local government, you will have an ongoing revenue stream and significant differentiator for your development.

building the Smart City

In the Smart City, all aspects of life are enhanced by the use of new technologies. They underpin how we move around, learn, consume and interact. They help conserve energy, improve civic services and enhance business and personal productivity. Creating the Smart City is a complex process that requires a completeness of vision: it needs a network, billing system and order process that can grow as the city grows and adapt to new, as yet unthought-of services. From design and build, through to operations and maintenance, Smart Cities require an operator partner with vast experience of technology, marketing customer service and innovation. Orange Business Services has the experience and vision to make this happen. We bring a depth of skills not available on the open market, and economies of scale to ensure the best-value capital purchases. By working with us, property developers can concentrate on their core activity building the future cities while enjoying the on-going service revenues that will speed up overall return on investment. next-generation network based on IP technology ultrafast broadband to every home, office, retail outlet; access to Orange Business Services global network
rich content high-definition IPTV and video on-demand, on-demand music and gaming home automation check the family is safe by remotely accessing a home set-top camera. smart businesses world-class enterprise networking and IP services such as telepresence and real-time collaboration smart hotels full-packaged solutions for hotels including IPTV, PoS, guest check-in and billing shopping malls fully-packaged solutions for VoIP, PoS, IP-CCTV, stock checking, ecommerce smart buildings intelligent sensors controlling heating, lighting and air conditioning (HVAC) and other building services (elevators, fire alarms, security, door access) smart government & public services online voting, telemedicine, tele-education

solutions for operators

An innovative service that helps organizations meet the challenges and opportunities presented by next-generation communications. It draws on the France Telecom Groups experience and market leadership in business networking, broadband and mobility.
Solutions for Operators is a package of services which enables incumbent operators and start-ups to implement IP networks to deliver the converged services demanded by businesses and consumers. It simplifies the complexity that has traditionally plagued the delivery of telecoms services, enabling simple deployment and rapid ROI. Orange Business Services can design, build and operate the networks and deliver services on your behalf, drawing on the experience and expertise of the entire France Telecom Group. From technology through to sales and marketing consulting, Orange Business Services will guide you.

a tailored approach

lower your total cost of ownership
We understand that each project is unique and therefore we can offer you flexible engagements, ranging from top-level strategic consulting to full-scale build, operate & transfer projects. creation For new-build networks, Orange Business Service offers an entire operator-in-a-box package. We can design, build and operate a network that grows as the city grows, deploying the kinds of technologies that will make the development the envy of the world. Orange Business Services can act as your outsourced operator, managing all the operational activities on your behalf while you enjoy an ongoing revenue stream. We have the vision, experience and in-house expertise to create a next-generation campus service provider from scratch. strategic advice Sometimes all you need is a little advice and mentoring. As a strategic advisor, we can provide consultancy for your company on the best approach for creating a new network and what services will fit your potential customers. France Telecom is one of the most-forward thinking, established and innovative operators anywhere in the world, and has already successfully risen to the challenges of deregulation and fierce competition in its own domestic market, emerging as a market leader. France Telecom is the worlds leading IPTV provider with over 1.2 million IPTV customers and has pioneered new products such as Livebox and Live Radio.

Want to know more about Smart Cities? Contact your local Orange Business Services office:
Dubai Dubai Internet City (DIC) Dubai Islamic Bank Building Office # 106 P.O. Box: 500102 Dubai Dubai United Arab Emirates Tel: +971-4-391-6900

about Orange

Orange is the telecom, Internet, TV and mobile brand of the France Telecom Group and is one of the worlds largest operators. France Telecom serves close to 174 million customers in five continents as of June 30, 2008, of which two thirds are Orange customers. The group had consolidated sales of 52.9 billion in 2007. Independent analysts consistently rank the France Telecom Group as one of the most innovative communications service providers in the world. France Telecom R&D is the principal source of innovation for the Group, with 8,500 registered patents. We have 4,200 researchers at 18 worldwide locations, including technocentres in Cairo and Amman. Our investment in new technologies such as telemedicine, mobile-to-mobile communications (M2M), fixed-mobile convergence (FMC), mobile broadband and next generation networks can be at your disposal through the Solutions for Operators program. Orange Business Services has been operating successfully in the Middle East & Africa region for more than 15 years. We employ 2,000 staff in the region, including 1,400 at our Global Service Centre in Cairo and have a core consulting team based in the UAE, which is part of a larger group of 400 consultants worldwide.
Equant and Orange Business 2008. All rights reserved. All trademarks are the property of their respective owners. This publication provides outline information only. Product information, including specifications, is subject to change without prior notice.
Kingdom of Saudi Arabia PO Box 25602 Riyadh 11476 Tel: +96 612910300
Beirut Asco Center Sassine Square Achrafieh Beirut Lebanon Tel: +1 331414
Cairo City Stars, Tower 2, Floors 9-11 Omar Ebn El Khatab Street Heliopolis, Cairo Egypt Tel: +2002
Casablanca 32, Avenue Mers Sultan Morocco Tel: +212 61789833
Dakar Rue Carnot x Berrenger Feraud BP 3713 Dakar Tel: +80
Abidjan Immeuble Botreau Roussell, Floor 6 Abidjan, Ivory Coast Tel: +40
We have Solutions for Operators customers in Morocco, Lebanon, Oman, Qatar, Ivory Coast and Saudi Arabia.

itate homecare for instance; services for doctors in their dealings with patients and other healthcare partners; and services for institutions such as hospitals. And last but not least, in 2007 we celebrated 20 years of the Orange Foundation with a major exhibition at the French National Library, showcasing the views of seven photographers from Magnum Photos on the Groups commitments to disability, education and culture around the world. how do you see the outlook for the Group in 2008? The core objective for 2008 is to generate a level of organic cash flow that is at least equal to our 2007 level in order to guarantee our capacity to invest and grow our business, particularly in new generation networks, while increasing our dividend per share and remuneration for shareholders, and keeping our net debt to gross operating margin ratio below 2 points. Thanks to the results achieved in 2007, we have more freedom than
in the past to implement a dynamic and balanced approach to managing our portfolio of activities to support our growth: consolidating our presence in growing markets, further strengthening activities in Europe when necessary, as in Spain with the acquisition of Ya.com, and lastly, acquiring additional capabilities in certain key activities: content, audience, healthcare and enterprise services. In a communications world that is undergoing major changes, in 2008 the Group will further strengthen its ability to anticipate sector developments, pursuing its continuous transformation, firmly focused on innovation, integration and effective cost management. More than ever, our priority will continue to be offering our customers the best networks and services.

6 interview

priorities for profitable growth

seeking out innovation

For my team and myself, this is the start of a big adventure. We will be participating in the Groups dynamic innovation approach, harnessing local expertise. Our work will be organized around the following subjects: user testing and validation (ergonomics) for developing products and services in the international and mobile markets; developing Arabic content access and voice services; carrying out research on specific services for the region, such as mobile payment; lastly, developing network solutions factoring in the sectors economic and environmental constraints.
The world in which the Group operates today demands constant innovation, and our new services enable us to stand out and maintain the lead we have on our competition. In this area, the Group aims to maintain its leadership. As shown by the most recent solutions we have launched: unlimited IP telephony, the Flybox, or even Business Everywhere, innovative products and services are sources of growth for the future. For this reason, the Group continues to invest heavily in innovation, giving it a unique positioning among operators with some 1.7% of its revenues invested in R&D over 2007.

In these markets, the Group extended its presence as part of the privatization process or by acquiring licenses. The strategy focused on countries with strong potential for growth and, in particular, acquisitions that will make it possible to provide genuine operational added value. Based on these criteria, Africa took centre stage in 2007 with its booming mobile market. Better able to cover sparsely populated areas, mobile telephony is well suited to the African development model and supplements the deployment of more expensive landline infrastructures. Demand is very high in this region, and business is profitable, despite a lower level of average income per user than in industrialized countries. The Group significantly strengthened its presence in Africa by acquiring mobile licenses in Guinea, Guinea-Bissau, Niger and the Central African Republic. Elsewhere, in December 2007, the Group acquired a 51% stake in the operator
Telkom Kenya, which has over 280,000 fixed-line customers as well as a new mobile license.
consolidated positions in European markets
In the mature markets, the Groups external growth policy is based on another need to consolidate its position in Central and Eastern Europe and optimize its portfolio of assets in Western Europe. Factoring in the market penetration and the tendency for players to consolidate in markets that have reached maturity, the Group made several acquisitions in line with a range of specific criteria aimed at benefiting from economies of scale and developing its strategy for the implementation of convergence.
We are now present in 14 countries in Africa and the Middle East, making the Orange brand a pivotal and very fast growing player in these markets. Orange now has over 23 million customers there, mainly for mobile telephony. We will continue with this selective development policy in 2008, looking into opportunities that may arise in this region as part of privatization processes or the granting of new licenses.
critical mass for convergence
Indeed, the objective is to establish a sufficiently strong position in all of its markets to help launch new offerings, and convergent solutions in particular. With this in mind, in autumn 2007, the Group separated from its activities in the Netherlands where Orange was the fourth biggest operator in this highly competitive market. However, the Group took opportunities to significantly strengthen its presence in the Spanish market. In July, it acquired 100% of the Internet service provider Ya.com. This move further strengthened the Groups position as number two in ADSL in Spain, with more than one million subscribers and a market share of 18.4% in the fourth quarter of 2007. This acquisition also marked a decisive step forward with the deployment of its strategy to offer Spanish customers convergent fixed, mobile and Internet services. In December, the Group also sealed an agreement to acquire a further 25% stake in Al-Pi, the Catalan operator specialized in business telecommunications services, raising its stake in the company to 100%.

Integrating the previous Wanadoo, Equant and Orange portals within one dedicated portal for each country, the Group has not only demonstrated its leadership in convergence, but also its brand values being honest and straightforward towards the customer. Following the successful launches in France and Belgium in 2007, the integrated portal is being extended to include the UK, Spain and other countries.
The Group has significant experience in this area, where it has its own advertising agencies or is working with partners in order to sell advertising space on the Groups Internet and mobile portals. In addition, the teams managing these media have been designing campaigns with advertisers for several years now. This additional source of revenues is therefore expected to develop over the next few years.
dedicated advertising structure
In order to capitalize on and develop this new revenues source, the Group decided at the end of 2007 to reorganize its activities in this area and create a dedicated business unit for online advertising. The audience and online advertising division aims to deliver strategic support and make the Groups innovation capabilities available to the teams in charge of Internet portals, mobile and TV in the various countries. Indeed, the Group has major advantages in developing online advertising sales on its sites. In addition to its large audience, which goes far beyond its own customer
base, it can capitalize on its unique positioning on the three screens computer/ TV/mobile with more than 100 million mobile customers, more than 10 million broadband Internet customer, and more than one million ADSL TV customers. Lastly, thanks to its expertise in technologies and localization services, it is in a position to offer particularly innovative and attractive solutions for regionally targeted advertising and small ads. These are all elements that allow it to set its sights on the online advertising market.
million unique visitors each month. It is also covering gaming communities, notably through its subsidiary Goa, which offers multiplayer online games and is set to launch a new online video game Warhammer in 27 countries and five languages in the third quarter of 2008.
Group Internet audience per month

in France

with 17 million unique visitors (orange.fr, 118712.fr, voila.fr, etc.)

number 5

in Spain
with 9 million unique visitors (orange.es, ya.com, Rincon del Vago, Autocity.com, etc.)

areas for development

In order to develop its audiences, the Group is continuing to introduce innovative services: Pikeo, a community service for sharing photos online, open to all and available in English, French and Spanish; Soundtribes, allowing self-produced artists to create their personal space and put their music and videos online; Whosegame and Mes donnes. In the US, the Group is drawing on Starmedia, the sixth-largest Hispanic community portal with over one

Dr. Bernard Lange, Head of the Saint-Blancard Functional Rehabilitation Centre, France.
Support our customers at home on the move at work

at home

The Group offers Home Communication Services notably in Europe, Africa and the Middle East. The main changes and trends seen in this market over 2007 include the rapid development of convergence. This strategic choice, made in 2005, is today at the heart of this activity and has made it possible to optimise the Groups resources with, for example the adoption of Orange as the single brand in the distribution networks of a large number of countries. It is also enhancing and simplifying the experience for customers, for example through the Livebox, with which 50% of the Groups broadband customers are now equipped, enabling fluid connections between new-generation services and terminals. Finally, it is convergence that is making the Groups services more attractive with multiplay (Internet, telephone and television), combined mobile and Internet services, or even one dedicated invoice for all services.
Against this background, the Groups strategy for home communication services runs along four main lines: strengthening the Orange brand, which now covers most broadband customers; continuing improvement in quality of service; marketing innovative products and new offers; and launching broadband services in certain countries where the Group has, until now, offered only mobile services. These four areas of focus allow the Group to strengthen its leadership position for fixed-line services in Europe and to pursue development in other countries based on the complementary nature of its fixed, Internet and mobile packages.
2007, particularly in the two key countries of France and Spain, primarily because these are needed in order to access broadband Internet. The face of the home-user market has changed: the proliferation of operators and the competition on prices, for both fixedline and Internet activities, are now giving way to a consolidation of players and intense competition in innovation and quality. Thus, the three main players together account for 92% of the market in France and 82% in Spain. This trend is also becoming apparent in other countries as well, although the UK and Polish markets, for example, are still relatively fragmented between a large number of players.
services in France, Poland and Spain. In Europe, there were 11.7 million retail ADSL broadband accesses at 31 December 2007, representing an increase of 18.7%, and a further 1.8 million ADSL accesses. The number of Liveboxes rose by 47% year-on-year, with 6.1 million units sold in Europe by the end of 2007. The number of customers for IP telephony services almost doubled during the year, reaching 4.8 million compared with 2.5 million in 2006. Finally, the number of digital broadband TV subscribers in Europe rose to 1.2 million, compared with 590,000 a year earlier.

Optimal management of conventional telephony
While developing new broadband Internet services, IP telephony and ADSL TV, the Group is continuing to manage its activities in conventional fixed-line telephony. These remain an important source of revenue and are an answer to the communication needs of large numbers of customers. Furthermore, the Groups market share and number of fixed lines in this sector have increased over
Growth driven by broadband
Revenue from home communication services was 22.7 billion euros in 2007. Revenue from ADSL services (including revenue from wholesale access sales and unbundling of telephone lines) continues to rise strongly: in 2007, it accounted for 20% of total revenues for residential business, compared with 15% in 2006, largely offsetting the downturn in conventional telephone
n1 in Europe for IP telephony with 4.8 million customers n1 in Europe for ADSL with 11.7 million customers 6.1 million Liveboxes sold in Europe (+53%)

9.8 7.6 3.1 4.5

4.8 0.7 2.5 0.4

3.9 7.3

1.0 0.2 0.8

international France

Broadband customers in Europe (in millions) published data
IP telephony customers in Europe (in millions) published data

50 at home

in france
Revenue from home services rose by 1.4% to 17.96 billion euros on a like-for-like basis, despite the 17.3% fall in revenue from conventional telephone communications traffic. The most important development of the year was that for the first time, growth in Internet activities was higher than the downturn in revenue from conventional telephony. Overall, the Group maintained its market share in fixed-line services at 84%, thanks to attractive new offers such as optimales contract packages. In the last quarter of 2007, its market share in broadband services remained stable at 49.4%, largely owing to the success of Net packages (Internet without telephone subscription) and triple play: 71% of Internet customers in France use Livebox, while 56% have subscribed to IP telephony and 16% to ADSL TV. In general, the Group has been working aggressively to win new customers signing up for Internet services for the first time, and has set up a loyalty programme, named davantage (more), which already covers more than 6 million customers. For both fixed-line telephony and Internet serv-
in the principal european markets
ices, the Group has simplified its offer catalogue (packaged formulas, Net packages) and strengthened its customer support; for example, through offers of installation, training, or assistance when moving house. In 2007, we saw the completion in France of the Broadband For All plan launched in 2003. 98.3% of the population is now eligible for broadband services. The number of retail ADSL broadband accesses is also up, climbing 23% year-on-year to 7.3 million. The number of Liveboxes sold rose by 52% year-on-year to 5.2 million units. The number of IP telephony customers doubled to 4.1 million, and the Group now has 1.15 million ADSL TV customers. Videoon-demand services have also been a success, with 2.5 million paid downloads. The priorities for 2008 are to maintain the Internet market share at its current level, faced with the consolidation of the competition, while developing satellite-based triple play coverage, promoting new uses and activities (advertising, content, entertainment, etc.) and continuing with pre-deployment for fibre.

For 2008, the priority in these countries is to consolidate the development of these broadband customers in Romania, Slovakia, Switzerland and Belgium in order to fully implement the integrated operator strategy and become a leader in triple play and quadruple play in these markets. In Africa and the Middle East, efforts will focus primarily on quality of service through an improvement in network capacities.

54 at home

In the Polish market, which remained highly competitive in 2007, TP Group confirmed its leadership position in broadband with 43% of the residential market, thanks to the launch of several commercial offers based around its flagship Neostrada TP package. These promotions enabled customers to benefit, for example, from a broadband subscription including a laptop computer with Microsoft Office pre-installed. These offers, among others, help to win customers loyalty and accelerate their migration to broadband.
Katarzyna Scheer, Head of Broadband Marketing, TP Group, Poland.

on the move

56 rapport annuel 2007
Four major trends characterised the mobile market in 2007. Firstly, quality of service and customer satisfaction levels became essential levers of growth and major elements of differentiation from the competition. Secondly, the rapid rise of unlimited offers is proving to be the driver for winning and retaining customers and increasing the usage and revenue each user generates. Thirdly, there is growing demand for convergent services among both retail and business customers, who are increasingly looking to be able to combine fixed and mobile services. The fourth and final trend is the development of mobile broadband, which is stimulating new uses, such as TV access and music downloads.
Number 3 in Europe for mobile telephony, the Group is rolling out its Personal Communication Services in 24 countries worldwide. Western Europe represents its main market, generating 77% of its revenues, followed by Central and Eastern Europe (14% of revenues), then Africa, the Middle East and the West Indies/French West Indies/Antilles (9% of revenues). In 2007, the Group confirmed its leadership in France, consolidated its positions in the UK and Spain, and achieved very strong growth in the emerging countries. It has seen good performance in all these regions, driven in particular by a significant increase in the mobile customer base (12%) and the growing popularity of 3G broadband services.

62 on the move

In Western Africa, thanks to the Orange Zone offer, which functions as a unique regional network, mobile customers can now receive calls from another country free of charge and make calls without constraint from one country in the zone to another for the price of a local call. With prices that are affordable, simple and consistent, this service aims to develop traffic both locally and internationally, as well as winning over and building loyalty among new customers. In the light of the success achieved, similar services are being considered for other regions, such as Southern Africa and the Indian Ocean.
Bachir Nasre, Head of International Business and Interconnection, Orange Mali.

At work

64 rapport annuel 2007
2007 has been the year of growth for Enterprise communication services. The strategy implemented in 2005 to transform Orange Business Services in an integrator of business communication services has proved a success. The traditional activities of fixed-line telephony and data services are lowing down, while the Group is seeing significant growth in new area such as IP networks, integration services and all services associated bringing value add. This increase is the result of a strategy described in three waves: continuous investment in our networks, the acceleration of the uptake of Internet technologies in businesses, and development of applications allowing the Groups enterprise to create value in this new world of communications. This strategy, which has for objective to bring the group towards providing integration communication services to its business customers, has enabled us to be back on the growth curve since 2007.
results that support the strategy put in place
The Group created an increase of 0.4%, in Enterprise Communication Services, on a comparable basis, rising to 7.7 billion euros. In these highly competitive markets, traditional fixed-line telephony and data services fell by 9.3% on a comparable basis, but this was offset by the increase in advanced network services (+7.1%), integration activities, and consultancy and management services (+14.4%). Convergence offers were also extremely popular: several solutions enjoyed strong growth, such as the Business Everywhere mobility offer, which now has 870,000 users around the world compared with 658,000 at the end of 2006.

66 At work

simplifying everyones lives
The Group is developing mobility and collaboration solutions that allow everyone to be connected, anywhere and at any time, with the necessary communication tools and applications: e.g. Business Everywhere, telepresence solutions, and Digital Work Space for local authorities and their schools or colleges. In this field, two new products were put on the market in 2007: Business Talk, an IP telephony solution that brings together a companys telephony across all its sites (national and international) and Business Together, which facilitates team working by integrating various tools: instant messaging, audio, Web, Visio, call handling, attendance management, shared work, etc. The trend will continue in 2008 with the launch of solutions designed to answer the specific needs of the end users according to their type of activity in the business: office-based users, mobile users, and those who move around within the business.
In order to develop our business and conquer new markets, we establish bases in regional capital cities. And in order to ensure a dynamic growth, we have a basic need to ensure the exchange of data under good conditions between branch heads and product managers. We liked the approach of Orange Business Services with regard to the security of exchanges, but also in terms of support and advice.
Dominique Foussier, Director and founder of Foussier Quincaillerie, a company with 200 employees.
building efficient end-to-end networks
Both globally and locally, the Group is pushing through frontiers and integrating the needs of multinational businesses into managed networks that provide reliable links between sites, servers and employees: IP VPN solutions, Business Acceleration, and International Ethernet Link, a solution launched in 2007 to provide interconnections between sites and their data centres. With almost 300,000 virtual private network accesses (IP VPN) managed around the world, Orange Business Services offers its customers a end-to-end solution for the global management of their communication networks.
Contact Multicanal (Multichannel Contact), Guide Vocal-Web, Numro Accueil (Greating Number) and Audiotel, Contact Centre Services, etc. Two new services of significance were launched in 2007: contact Everyone (multimedia distribution solution: SMS, MMS, e-mail, voice messaging, etc.) and e-boutique (an application solution to create a retail site without having strong Internet experience).
Our relationship goes beyond the typical customer/supplier framework: we work more like a team. Working with Orange Business Services has been an extremely positive experience.

commercial successes

SMEs and multinationals alike, many new customers have called on the Groups enterprise communication services. The Norwegian oil group Statoil chose these services to plan its infrastructure and manage its huge Internet network on 40 sites spread across 23 countries. The Ministries of Foreign Affairs of Sweden and Finland chose to entrust Orange Business Services with their ultra-secure communication networks between their respective embassies. The Fleet Advanced machine-to-machine fleet management solution was adopted by famous freight companies such as Gefco. The world leader in electronic equipment, Legrand, chose the Group to implement a videoconferencing solution allowing its managers in 60 countries to take part in biannual strategy meetings organised directly from its head office. In France, IP telephony services have been implemented in companies such as the insurance group Ag2r, the printing plant manufacturer MAN Roland, the clothing retailer Dfimode, the aircraft manufacturer Airbus In France again, government bodies have also proven their faith in the Group: the National

Directors elected by the employees:
Hlne Adam, technician on the international network within the switching department of the Networks, Carriers and Information Systems Division; Ren Bernardi, Chairman of @toukolo, the association that organises holidays for the children of France Telecom employees; Jean-Michel Gaveau, business manager and network designer within the Rouen intervention unit.

internal control

In 2007, the Group continued with the programme of strengthening internal controls on the production of financial and accounting data which was initiated in 2003. This project has consisted of improving all internal financial control processes, principally
Director elected by the General Meeting on the proposal of employee shareholders:
Stphane Tierce, responsible for the prepaid market line of services (Mobicarte services) within the France Operations Department.
Group Management Committee
Since January 2006, a select Group Management Committee consisting of nine members, including the CEO, has been in
(1) Mr Jos-Luis Duran was co-opted on 5 February 2008 to replace Mr Arnaud Lagardre, resigned; Mr Charles-Henri Filippi was co-opted on 5 February 2008, to replace Mr Stphane Richard, resigned. Their definitive appointment will be submitted for ratification by the General Meeting of 27 May 2008.

74 a responsible Group

Louis-Pierre Wenes Group transformation Home Communication Services France
Gervais Pellissier Finance Director
Olivier Barberot Human Resources Director Poland
Didier Lombard Chairman & CEO
Barbara Dalibard Enterprise Communication Services Orange Business Services
Olaf Swantee Personal Communication Services United Kingdom, other countries in Europe and Egypt
Georges Penalver Strategic Marketing and Orange Labs
Jean-Philippe Vanot Networks, Carriers and Information Systems
Jean-Yves Larrouturou General Secretary
Africa, Middle East and Asia

human resources

The foundations of a new human resources culture were strengthened in 2007. Innovative solutions were put in place, which make know-how, skills and the quality of teams a lever for meeting the Groups new challenges in all its markets, in each of its areas of activity. Shared worldwide, the human resources policy directly serves the strategy and supports transformation by putting the right skills in the right place at the right time, and by giving every employee the means to develop their talents and take control of their professional destiny.

integrating new talent, irrespective of its origins, on cost improvement and performance management, and on an ambitious programme of professional development. In this last area, the objective is to enable every employee to develop their professional value and reflect on their future so as to be ready to seize, at any moment, all the opportunities that present themselves.
Groups strategy in all countries, and each country establishes recruitment and mobility policies appropriate to its local context by progressively using the frame of reference describing all the job areas and skills of the Group.

developing talents

Although the same tools and principles can be used throughout the Group, the challenges vary considerably from one country to another, and the implementation of human resources policies must therefore be adapted to each situation. Thus, certain countries (UK, Spain, Poland, etc.) are faced with high rates of staff turnover, particularly in priority job areas. Initiatives have been taken to attract and retain good personnel: training and talent-spotting programme in Egypt, creation of career coaches in the UK, policy of work/life balance management through choice of working hours (for team working), creation of five development spaces facilitated by advisors in Poland, etc. In France, the challenge is to encourage internal and external mobility. Externally, one approach to this challenge is to continue with the existing
adapting policies to local contexts
Thanks to the groundwork that has been done, all the main lines of the act: programme are now in place. A shared human resources culture is being constructed at Group level. To ensure that managers have the necessary means to inspire their teams, and to enliven and explain the strategy, a unique leadership model, combined with a common evaluation tool, is being rolled out in Spain, France, the UK, Poland, Jordan, etc. Orange management schools have been opened in most of the countries in order to further improve managers ability to develop the talents of their co-workers. As for personnel career management, this is carried out in conformity with the
the right skills in the right place
Intended to support NExT in human resourcing since its launch in 2005, the act: programme (anticipation and competencies for the transformation) has continued its process of adapting skills to the needs of the Group and strengthening the workforce in priority areas. In order to promote the organisations and the new ways of working that are necessary for transformation, the emphasis has been placed on
enterprise scheme which since 2003 has seen the creation of 1,500 businesses. Similarly, the projet personnel accompagn (supported personal project) scheme (PPA) gained momentum in 2007, and enabled more than 700 people to continue their career in another business. 4,500 employees have now moved into the civil service since the scheme was first created. Internally, mobility is being encouraged towards the priority job areas, with over 2,000 employees switching jobs in two years via one of 37 professional training courses and an extensive training initiative. Thus, at the end of 2007, the priority sectors of customer relations, business services, networks and information systems and multimedia content production accounted for 56% of the workforce in France, compared with 50% two years earlier. This will to concentrate skills in the domains of key importance to the Groups strategy was also applied to the external recruitment policy: sales, innovation and networks and information systems absorbed the majority of the 14,000 appointments made in 2007.

the Group and incentivise its employees, an internal multi-country competition named caring for the future was launched in 2007. For this first year of the competition, 12,000 employees from 16 countries took part in selecting the projects most emblematic of the commitments undertaken. Among the prize winners were the following: the Action Handicap Orange (Orange Disability Action) project in Cameroon, which promotes the social and professional integration of people with physical disabilities by providing them, for example, with a working tool for using call boxes (portable telephone boxes); the mapping of channels for the end-oflife processing of products carried out in France by the Groups Purchasing Department, consisting of an evaluation of capacity and compliance with legislation by providers of waste collection and disposal services.
We want to reduce our ecological footprint. The dematerialisation of information exchanges thanks to Business Everywhere has enabled us to do away with faxing by our salespeople, saving more than 50,000 pages a year. We also chose Orange Business Services for its ability to offers us green solutions, and for its commitment to sustainable development.
Frdric Lallemand, Head of Information Systems at Metarom, a group specialising in the manufacture of flavourings and colourings for the agri-food industry.
solutions for sustainable development
The Group is convinced that telecommunications have a role to play in combating climate change and improving the lives of
taking care of the future
In order to strengthen the sharing of best practices in corporate responsibility within
individuals. As the leading user of its products and services, Orange uses the greenest network applications and information systems possible. But it also strives to promote these solutions to its private, or business customers, via five levers: developing collaborative working: bringing people together without them having to move is the heart of the Groups business; vehicle fleet management: based on machine to machine technology, the Groups solutions make it possible to optimise the movements of thousands of vehicles in real time and improve their preventive maintenance; consolidating infrastructures: solutions for virtualisation, hosting and facilities management, etc.; solutions for consolidating data centres and for reducing server numbers and energy consumption; dematerialising exchanges: among other solutions, the Group offers electronic invoicing that enables customers to drastically reduce their paper consumption; human services: the Groups solutions help put citizens in touch with government departments, maintain a social and

medical link at home for old people, and improve the quality of telecare services.
the Orange Foundation celebrates its 20th anniversary
Since its creation in 1987, the Orange Foundation has implemented a major sponsorship programme echoing the activities of the business. Its purpose is to facilitate all forms of communication that might enrich links between people. This commitment is based around three major areas: disability, with actions in the field of autism and visual and auditory difficulties; education, with programmes to combat illiteracy and educate young girls in developing countries; and finally culture, with support for community choirs. Every year, more than 500 sponsorship projects are supported in these different fields and in 23 countries, in Europe, Asia, the Middle East and Africa. On the occasion of its 20th anniversary, the Foundation presented an exhibition, a sharing world at the French National Library: seven photographs from the Magnum Photo agency based around the Foundations actions, providing a moving and powerful testimony to the day-to-day
work of the associations, organisations and choirs supported all over the world. The Groups commitment to sponsorship was also hailed by the French Ministry of Culture, which awarded the Mdaille de Grand Mcne (Grand Patronage Medal) to the Foundation. For more information: www.orange.com/fondation. At the end of 2007, the Foundation set up an online blog to promote its work, its partners and the associations supported: www.orange.com/fondation/blog. All the Groups social and environmental actions are described in its 2007 corporate responsibility report, in the responsibility channel on www.orange.com.
In 2007, over 500,000 conference calls made by Orange Business Services customers saved the emission of 1,000 tons of CO2 into the atmosphere.
Violence-free Schools The national Violence-Free Schools programme conducted by the TP Group foundation was voted best educational campaign at the Zlote Spinacze 2007 (Gold Clip 2007), a prestigious competition for institutional press relations. TP won second prize, following on from the award 3 years ago for the Phone Mum programme. Violence-Free Schools is aimed at highlighting the problem of violence in schools through profiles and statements from pupils, teachers and parents who are against it. Handbooks, specialist staff, and campaign kits are all available to show schools how they can respond effectively to the problem of violence. 15% of Polish schools have already signed up to the programme, representing 4,600 pupils at 60 schools.
80 renvironmental and social responsibility

quadruple play: triple play service combined with mobile telephony. SIM card (Subscriber Identity Module): smartcard containing data on a mobile network subscriber (subscription type, services taken out). When introduced into a terminal (mobile telephone or computer), it makes it possible to identify the owner on the network and operate their mobile services. SMS (Short Message Service): communication service for short written messages on mobile telephony handsets and networks. triple play: broadband subscription service including Internet access, telephony services and a range of television channels. UMTS (Universal Mobile Telecommunications Systems): 3rd generation mobile telecommunication system capable of providing broadband multimedia services. unbundling: introduction of competition on the local loop. The phone line remains the property of the incumbent operator, but is connected to equipment belonging to a rival operator located inside the telephone exchange. VoD (Video on Demand): refers to the possibility to select digital video content and download it from a central server on to a computer or television. web 2.0: this represents a new approach to using the Internet that enables users themselves to relay or adapt web content in line with their needs. In this way, each user is a broadcaster, transmitter and receiver of information, thanks to the development of broadband Internet and mobile.

88 glossary

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France Tlcom French limited company with share capital of 10,457,395,644 euros Paris trade and company register 866 Design and production: Photo credits: Getty Images Pascal Dolmieux (Eyedea) Ellen Kooi (Katwijk bomen, 2005 Courtesy Galerie Les filles du calvaire, Paris, Bruxelles) Ofer Wolberger (Bransch) Nicolas Langot Nicolas Guerin France Telecom Group photo library All rights reserved Document printed on PEFC-certified paper.
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This is a flash code. By scanning this 2D barcode with your mobile phone's camera, you will be able to access the multimedia content or information in a flash! (function available with Orange on certain mobile handsets in France). To find out more, visit www.orange.com/flashcode"