Orange S.A. (France Telecom) SWOT and PESTLE Analysis

Strength

1. Vast physical assets for fixed and mobile networks and continued focus on improving quality: Orange depends on its ultra-high-speed network, which spans up to 18,000 km of fiber optic cable in France and globally (Europe, US and Singapore). The company's fixed and mobile access networks connect people in 26 countries across Europe, Africa, and the Middle East with enterprises in nearly 220 nations and regions. It owns or co-owns 450,000 km of underwater cables in addition to 40,000 mobile towers around Europe. Customers can use satellite technology to get very high-speed broadband, particularly those who live in distant locations. Orange joined together with long-term investors to establish two FiberCos in Europe as part of its commitment to continuing fibre deployment. The Group also introduced TOTEM, its European TowerCo, in 2021. TOTEM offers mutualized solutions for operators to enable passive mobile infrastructure sharing, maximise the use of mobile towers, and increase their value.
The pandemic-accelerated trends—the rise in internet usage, advancements in improving regional coverage, digital transformations inside businesses, and the pervasive use of online services—indicate an increasing demand for dependable, inclusive, and secure connectivity everywhere. In Europe, there are currently 56.5 million homes that can connect to FTTH to the home (FTTH), and Orange hopes to raise that number to 69 million by 2023. Orange is the top fibre provider in France with 66% of FTTH lines installed. France now has the greatest fibre footprint in Europe, as 5.9 million new sockets were added in 2021 as fibre expansion proceeded at a record-breaking rate.
Orange is continuously working on modernization of its network by moving it to Cloud so it could be dynamically custom programmed in real time. With Network Function Virtualisation (NFV) and the Software Defined Network (SDN), automation could be introduced in network behavior through software interfaces where consumers would be able to control services via web applications. This will help decline costs generated by the Group's networks.

2. Strong geographical presence around the world: Orange has clocked record sales in France, strong presence in US and Canada and emerged as a market leader in Europe in the telecom sector. Orange’s ability to differentiate along various segments has helped increase its customer base. Having high presence in a country like France where customers spend an average of 2 hours and 27 minutes on their smartphones is a great competitive advantage. France is shifting from an average of more than seven connected devices per residency in 2016 to 13 in 2022, obliterating the difference between fixed and mobile usage. Europe, where Orange operates in 8 markets including Belgium, France, Luxembourg, Moldova, Poland, Romania, Slovakia and Spain, contributes 70% of the consolidated revenues, 45% of which comes from France alone. Orange is present in 21 countries in Africa and Middle East and one in every ten Africans is an Orange customer.
The company's fixed and mobile access networks connect people in 26 countries across Europe, Africa, and the Middle East with enterprises in nearly 220 nations and regions. It owns or co-owns 450,000 km of underwater cables in addition to 40,000 mobile towers around Europe. Customers can use satellite technology to get very high-speed broadband, particularly those who live in distant locations.
By 2025, Orange wants to be the standard multi-service provider throughout Africa and the Middle East. The Group's strategy in this region, where it has operated for more than 20 years, includes boosting B2B services, expanding network coverage, creating a multi-service digital ecosystem, and assisting people in developing new digital skills. All of which are drivers of a nearly 11% rise in 2021 revenue, meaning the region was the largest contributor to the Group’s growth

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Weakness

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Opportunity

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Threat

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Political

1. Policy participation for shaping Europe’s digital future: European political debates related to issues ranging from net neutrality to digital infrastructure and regulations is crucial for major telecom players such as Orange. Orange has direct contributions in 8 EU Member States and plays a major role in achieving the European Union’s economic and social ambitions. Orange regularly publishes papers and articles to participate in the political process in an open and transparent manner which in turn influences legal and regulatory evolutions impacting the telecom industry in Europe.

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Economic

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Social

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Technological

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Legal

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Environmental

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