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Orange: a telecom operator on the move

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In the world of telecommunications, the Orange Group is a highly regarded company. Amidst a burst of recent acquisition and sales activity, it has been investing in innovation and young companies. In fact, Orange has decided to create Digital Ventures, a new business unit whose mission is to support international start-ups in the telecom and digital technology sector.

According to IT For Business, Orange Digital Ventures will give priority to the most innovative new companies:

Orange Digital Venture is set to invest €20 million in funding in 2015, which it will divide among companies that have the most promising teams. It will give priority to those working in big data, cloud, connectivity, communication, e-health, the Internet of Things, payments, and security.

Orange had already caused a stir in the industry when, in December 2014, it sold the UK market's EE, which was then acquired by British Telecom for €15.7 billion. In effect, it seemed that Orange disposed of its business in Britain to allow BT to have a slice of the mobile market pie. Delphine Cuny gives more details in La Tribune:

The French operator, which should collect more than €6 billion in cash, exits the British market fifteen years after the acquisition of Orange. Stephane Richard, CEO of Orange, posted on Twitter, referring to the sale after the acquisition of the fixed operator Jazztel in Spain: "BT-EE. The second strategic move by Orange in as many weeks. We are transforming and we are getting stronger! #creonsdesopportunités #convergence!"

Indeed, in October 2014, Orange had informed the European Commission of its intent to acquire Jazztel, the Spanish operator of fixed telecommunications. The Spanish competition authority then issued a referral request under the EU Merger Regulation. IT Channel.info explains why Orange is facing this situation:

Orange is a telecommunications service provider, operating in over 30 countries. It operates in the Spanish telecommunications market through its Spanish subsidiary, Orange Spain, SAU. 

Jazztel, through its subsidiary Jazz Telecom, SAU, provides telecommunications services to both retail and wholesale businesses in Spain.

The Commission has jurisdiction over mergers and acquisitions involving companies with revenue exceeding a certain thresholds and its mission is to prevent concentration that would significantly impede the practice of effective competition in the EU.

If 2014 was an eventful year for telecoms in Europe, 2015 promises to be even more so. Consolidation, guided by fixed-mobile convergence and market fragmentation, will continue. Romain Gueugneau writes about this phenomenon in his article in Les Echos:

The move from four to three operators in some countries remains one of the main drivers of consolidation. The relaxation of competition rules in Europe facilitates such changes and is considered by the industry as the only way to restore margins and preserve investments in networks. Suddenly, all eyes are pointed at the markets with more than three operators.

With such predictions, looks like, many more network upgrade and integration projects are going to be deployed in the telecommunications sector. All of which bodes well for One2Team Telecom Deployment offering.

 

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