Public Hearing i2010 Brussels, January 26th, 2006
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1 Public Hearing i2010 Brussels, January 26th, 2006 Marc Fossier Executive Vice President and Chief Technology Officer France Télécom Group 32 transparents
2 The world of telecom operators is changing fast VoIP is making major inroads in the main revenue stream 10% of total voice traffic is VoIP in 2005 We anticipate 30-40% in 2006 Customers expect broadband access But broadband traffic is dominated by P2P free services VDSL and / or FFTH for fixed, Beyond 3G for mobile The User is at the centre of the network Convergence of ICT opens the way to new competitors CE companies Big 5 (Microsoft, Google, Yahoo!, Intel, HP) Regulators are focused on traditionnal battlefields Return on investment on major capital expenses for the network becomes problematic 2 / 13
3 Innovation : a must 6-12 months The base revenue decreases regularly Durable growth will only come from a strong flow of innovations 3 / 13
4 The rhythm of innovation grows dramatically (200/annum) T4 T1 T2 T3 T4 T1 Orange world Wanadoo visio IM v3.2 TV on ADSL Lyon Libre Appel 4.0 RPV Integral E-telephony Big companies 3G VoIP W W 00 photo Album MaLigne visio VoIP W Europe visio kiosk Video on mobile TV on ADSL Paris Business Everywhere Talk Now Very high speed internet for companies Demo TVHD over ADSL2+/ VDSL e-visiophonie v2 Live Box ADSL2+ W oo IM help Buddy Orange Connexion kit v7 4 / 13
5 Accelerating Time to Market Invention/ Technology Ideas (R&D, market feed back, brainstormings, ) Explorations Standard Process for Product & Service launch «short track» process Research Anticipation Development Increase IP revenus Develop critical skills Detect disruptive technologies 5 / 13 Explore technologies, services, usage Reduce Time to Market Build Integrated Services Industrialization of products,services, network evolution Partnerships with manufacturers for more efficiency
6 France Telecom is increasing its investsments in Research and Innovation Variation of R&D budget A % of revenue (excl. IT/IS) 1,1% 1,3% 1,5% 1,8% / 13 The largest European investor in R&D
7 The trends FT has identified Services become Multi-access The customer defines and personalizes his services Focal point is Shifting from The network to the user The customer at the center of his communications universe Services become multi-access Usages are simple and user friendly 5 major technology discontinuities IP network Broadband everywhere Ubiquitous wireless Multi-access innovative devices Delayed and open network and IT platforms 7 / 13 Integrated operator as the incarnation of this paradigm shift
8 NExT Give access to a new world of services Unlimited call plans FamilyTalk Livecom TV over DSL Live Tv and mobile video Photo transfert New IP services Connect remote employees Connect all corporate sites Livebox Livezoom m-coaching Consumers Businesses Project design Solution integration Customer service 8 / 13 A new generation of telecom services to change everyday lives
9 Content everywhere, multi-platforms, multi-territories: one of the key pillars of NExT Sport everywhere Exclusive soccer & rugby agreements, plus other sports Music everywhere Unique offer across PC, mobile and TV Partnering with Warner Music TV everywhere TV bouquets & VOD avalaible through ADSL and 3G, TV, PC, and Mobile 9 / 13
10 Build the future through Strategic Partnerships Objectives Spheres Personal Home Enterprise Access, Networks, IS, Middleware Reactivate growth Build the integrated operator Address paradigmatic changes interactive mobile entertainment appliances www nokia fr Home gateway Seamless IP MM services Authentication, Access security Seamless IP multimedia services NGN-IMS Beyong 3G Seamless mobility solutions, Innovative wireless access networks 10 / 13 Innovating with industry leaders
11 i2010 A European Information Society for growth and employment FT welcomes the new Commission strategy for the sector as an ambitious and comprehensive plan: As strengthening innovation and investment in ICTs is one of the priorities of the i2010 action plan. The Commisssion stresses that Europe is seriously underinvesting in ICTs and lags behind other regions for R&D A serious concern for the industry Together we have to make sure that the i2010 momentum is maintained and to avoid some eeurope fatigue 11 / 13 FT is ready to play its part as already illustrated
12 Conclusion Speed is paramount Understanding of the customer: the customer is at the centre of the network Strategic Marketing Social science, human science and ethnography The play ground is worldwide Network operators must carry the large investments on backbones and access network and Invest in services to generate revenues that will replace voice in a world where IP opens the way to services for free 12 / 13
13 13 / 13
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