Orange unveils new strategic plan, Essentials 2020

17 Mar 2015

Paris-based telecoms group Orange has unveiled its new five-year strategic plan, dubbed ‘Essentials 2020’, which will replace the ‘Conquests 2015’ plan launched in 2010. Orange Group’s CEO Stephane Richard said: ‘With the launch of Essentials 2020, we are writing a new page in Orange’s history. This five-year strategic plan is focused firmly on our customers. Our ambition is based on a strong commitment to provide them with an unmatched experience on a daily basis.’ According to Essentials 2020, Orange will invest more than EUR15 billion (USD15.90 billion) in its networks from 2015 to 2018, while aiming to triple the average fixed and mobile data speeds by the end of 2018. The group outlined its main operational objectives as follows:

• In France, Orange plans to triple its investments in fibre-optic networks by 2020 and increase the number of connected homes from 3.6 million at the end of 2014 to twelve million in 2018 and 20 million (2022);

• In Spain, the group aims to expand its fibre networks and TV offering in order to double convergent revenues by 2018. Further, the proposed acquisition of Jazztel, which is currently being examined by the European Commission (EC), will enable it to reach its target of ten million connectable homes by the end of 2016;

• In Poland, Orange will deploy its own fibre network in a bid to reinforce its position as the incumbent operator and market leader in terms of fixed line access and convergence;

• In Belgium, Orange will test the use of cable technology through the launch of a TV offering in 2015 that will be significantly different from existing market offerings;

• In Europe, Orange targets 95% Long Term Evolution (LTE) coverage across its footprint by 2018;

• In Africa and the Middle East, the operator will continue to invest significantly in territorial coverage, with a particular emphasis on the continued deployment of broadband networks. LTE services will be launched in seven countries in 2015 and in the majority of countries in that region by 2018; and

• Orange will drive the evolution of its network towards all-IP, the cloud and the virtualisation of network functions, while also preparing for the introduction of 5G technologies.

As previously reported by CommsUpdate, in January 2015 the group revealed that its new five-year business plan will be presented to the public on 17 March 2015. Mr Richard disclosed at that time that Orange fell short of achieving the ‘Conquests 2015’ objective of signing up 300 million subscribers (the group had 240 million users on its books at end-September 2014) by stating: ‘we set the bar too high, the goal was ambitious.’

France, Orange Group